PSALM asks ERC to resolve P216M collectibles
PSALM’s position on this issue is fully supported by both the ERC and the Department of Energy
The Power Sector Assets and Liabilities Management Corp. (PSALM) has appealed to the Energy Regulatory Commission (ERC) to immediately resolve pending cases involving the state-owned firm’s collection of unpaid dues of several distribution companies and industries.
The total amount stands at P216 million.
President and CEO Irene Besido Garcia said the cases comprise unpaid Default Wholesale Supplier Arrangement (DWSA) charges of five firms that have contested the payment of these obligations before the ERC.
A report from Department of Finance (DoF) identified the five firms; 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.
According to Department of Finance , PSALM also aims to collect P2.681 million from the Melters Steel Corp. (MSC), which has also lodged a case against the state-owned firm and the National Power Corp. (NPC) before the ERC.
Another pending case before the ERC involving unpaid DWSA charges and power bill adjustments was filed by the Steel Corp. of the Philippines (STEELCORP) 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 DWSA due to PSALM, which we desperately need in order to be able to settle the remaining obligations we assumed from NPC,” Garcia said.
Finance Secretary Carlos Dominguez III, who chairs PSALM’s Board of Directors, and Energy Secretary Alfonso Cusi, who is vice-chair of said Board, were furnished copies of PSALM’s letter to ERC.
In her letter, Garcia stressed that “PSALM is very confident of its legal position for collecting these DWSA. 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.”
She added 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, Garcia said, which could be reduced if these pending cases are resolved soon enough and the debtors are directed to pay PSALM at once.
Earlier, PSALM also demanded payment from 14 firms with long-overdue obligations amounting to P1.931 billion. Furthermore, PSALM is bent on collecting P238.3 million in unremitted Universal Charge from 11 electric cooperatives.