Around P59.23 billion are owed by some electric cooperatives and independent power producer administrators (IPPAs) to state-run Power Sector Assets and Liabilities Management Corp. (PSALM), according to a statement released by the Department of Finance (DOF).
Since last year, around P28.46 billion was owed to PSALM by electric coops and IPPAs. Several of them are in legal battle for the said overdue accounts, as stated in a report to Finance Secretary and PSALM Chairman Carlos G. Dominguez.
San Miguel Corp.’s South Premiere Power Corp. has the highest unpaid amount due to PSALM, totalling P19.75 billion.
Other firms that owe PSALM are: Vivant-Sta. Clara Northern Renewables Generation Corp., formerly owned by Vivant Energy and Sta. Clara Power Corp., owes P3.86 billion; The Good Friends Hydro Resources Corp. has an overdue amount of P1.16 billion; FDC Utilities has yet to pay P1.12 billion. Both IPPAs were in contract to manage the Unified Leyte Geothermal Power Plants.
FDC Misamis Power Corp. an affiliate of Filinvest Utilities, also has financial obligations amounting to P2.56 billion.
“Due to these overdue accounts, the Government through PSALM is constrained to resort to borrowings that the National Government guarantees, in order for PSALM to timely fulfill its mandate of liquidating the financial obligations of the National Power Corporation,” PSALM president-CEO Irene Joy Garcia told Manila Bulletin reporters.
“In fact, in 2018, PSALM borrowed about P23 billion to cover its maturing obligations, and PSALM is set to borrow USD 1.1 Billion for obligations maturing this end of May 2019,” she added.
Due to unpaid debts, PSALM is obligated to pay interest, guarantee fees, and other finance charges of around P2.62 billion annually.
“All these borrowing costs could have otherwise been utilized by the Government for the construction of public school classrooms or to build roads and bridges,” Dominguez noted.
Dominguez ordered PSALM to continuously pursue collection against these IPPAs and use all measures available to protect the rights of the government and consumers.
Included in the PSALM report are 10 electric cooperatives and industries with highest unpaid obligation due to PSALM, totalling to P28.74 billion since last December.
The highest overdue account is the Lanao del Sur Electric Cooperative, with a financial obligation amounting to P9.63 billion.
