San Miguel Corp. denies outstanding debts with PSALM

San Miguel Corp. denies outstanding debts with PSALM

The San Miguel Corp. (SMC) said that it doesn’t have outstanding debts with the Power Sector Assets and Liabilities Management Corp.

Company subsidiary South Premiere Power Corp (SPPC) said that it has paid P238 billion as part of its contractual obligation for management and control of the Ilijan power plant.

The payment consists of P187 billion in energy fees and P51 billion in capacity fees, the company said in a statement.

By the time the contract expires in 2022, SPCC would have paid P384 billion to PSALM. This includes P287 billion in energy fees or regular reimbursements for fuel and variable operating maintenance costs and P97 billion in capacity fees.

This is the effective payment for the 20-year old power plant.

PSALM has already gained P30 billion from the IPP administration agreement with SPPC, it added.

In August, Department of Energy Secretary Alfonso Cusi called on SMC to pay its obligations since entering a contract with PSALM for the IPPA of the Ilijan plant.

The SPPC is a subsidiary of the power unit of SMC, the SMC Global Power Holdings Corp.