Psalm seeks ERC help to collect P216-M debt
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 04 Sep 2019 16:26:14 +0000
State-run Power Sector Assets and Liabilities Management Corp. (Psalm) has appealed for the resolution of pending cases at the Energy Regulatory Commission (ERC) involving P216-million worth of unpaid dues of several distribution companies and industries, the Department of Finance (DoF) revealed on Wednesday.
The DoF’s statement was based on a furnished copy of Psalm’s letter to the Commission sent to Finance Secretary Carlos Dominguez 3rd, who chairs Psalm’s board of directors.
In the letter, the DoF quoted Psalm President and Chief Executive Officer Irene Besido Garcia as saying the pending cases involve unpaid default wholesale supplier arrangement (DWSA) charges of five firms that have contested the payment of these obligations before the ERC.
These cases involve the Angeles Electric Corp., San Fernando Light and Power Co., and Tarlac Electric Inc., which jointly questioned Psalm’s collection of P75.001 million in DWSA charges.
Psalm also aims to collect P2.681 million from the Melters Steel Corp., which has also lodged a case against the state-owned firm and the National Power Corp. (NPC) before the commission.
Another pending case before the ERC involving unpaid DWSA charges and power bill adjustments was filed by the Steel Corp. of the Philippines amounting to P138.321 million.
“These cases delay Psalm’s collection efforts. The cases have been submitted for ERC’s decision several years ago. We hope that ERC can help us to finally collect the DWSAs due to Psalm, which we desperately need in order to be able to settle the remaining obligations we assumed from NPC,” Garcia said in the letter.
She also stressed that “Psalm is very confident of its legal position for collecting these DWSAs. Psalm is mandated to impose the NPC Grid Rate or the WESM (Wholesale Electricity Spot Market) Ex-Post Nodal Energy Price, whichever is higher, and a premium of 10 percent.”
Garcia also pointed out that Psalm’s position on this issue is fully supported by both the ERC and the Department of Energy (DoE), as reflected, respectively, in ERC Resolution 44, series of 2006, and DoE Circular 2006-06-0009.
Psalm’s borrowing costs amount to about 8 percent per annum, she added, which could be reduced if these pending cases are resolved soon enough and the debtors are directed to pay Psalm at once.