PSALM claims P15B loss in Mindanao

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MANILA, Philippines – State-run Power Sector Assets and Liabilities Management Corp. said it has incurred losses amounting to as much as P15 billion from 2001 to 2011 from operating the government’s power facilities in Mindanao.

PSALM disclosed the figures on Sunday to belie allegations that the government has been generating profits from its electricity sales in Mindanao, as well as to ensure the “utmost transparency to all relevant sectors as to the actual financial position of the Mindanao plants’ operations.”
The P15 billion losses, however, will be assumed by PSALM and passed on to all power consumers through the imposition of the universal charges for stranded contract costs and stranded debts. The approval for the petition to start collecting the UC remained pending with the Energy Regulatory Commission.

PSALM president and chief executive officer Emmanuel R. Ledesma Jr. explained that while the operation of hydro power plants, specifically the 646-megawatt Agus and Pulangi facilities, results in operating profits, the government has been incurring losses from the operation of its coal, geothermal, and diesel-fired plants.
These losses significantly exceed the revenues generated from the hydro plants, he stressed.
“In fact, the cost of producing electricity from these facilities is more than the time-of-use rate imposed on Mindanao consumers,” he added.
Ledesma further pointed out that the revenues generated from the hydro plants are being used to cover the operating losses from these facilities.

PSALM currently sources additional capacity from these facilities to meet the demand of Mindanao consumers in view of the limited and intermittent supply from the hydro plants.

Another major consideration, Ledesma said, would be the capital expenditures incurred for plant maintenance and rehabilitation. This has not been taken into account in the calculation of the plants’ operating income.
At present, the government still owns and manages the contracted capacities of several power facilities in Mindanao including the Agus and Pulangi facilities, a diesel fired power barge in Davao, Southern Philippines Power Corp.’s (SPPC) Bunker-C fired power station in Sarangani; and Western Mindanao Power Corp.’s (WMPC) diesel-fired generating facility in Zamboanga City, among others.

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  • Wadav

    paano kc pagnakaw ang mga taga gobyerno ok lng. so parang ang mga illegal na gawain naging legal na pagdating ng panahon kc nga wla namang nahuhuli sa kanila? kahit ano pa sabihin natin di mauubos ang kawatan sa gobyerno! sana tamaan kayo ng kidlat!

  • http://www.facebook.com/profile.php?id=100001488484017 Gael Padilla Pader

    Revealed By the PSALM President and CEO, Mr. Emmanuel Ledesma, Jr. (Ilongo sounding name), here in this page, now are the reasons for rejecting the privatization of the Agus and Pulangi hydro power plants in Mindanao. These are: 1. The operation of Agus and Pulangi hydro power plants had resulted in relatively huge profits; 2. It is the government’s operation of coal, geo-thermal, and diesel-fired plants in Mindanao which incurred heavy losses, the amount of which was paid by and therefore had eaten up the profit and revenues of the Agus and Pulangi complex; and 3. Needed capital from out of the profit and income were not allocated to pay for the maintenance and rehabilitation of the said power plants. The relevant issues for resolution, therefore are: 1. Whether or not a highly profitable Agus and Pulangi hydro power plants shall be privatized; Resolution: Since Pres. PNoy had spoken that privatization is set aside, this is now moot and academic; 2. Whether or not the heavily, losing power facilities like the coal, geo-thermal and diesel-fired plants be allowed to continue to exist; Resolution: it is for the private operators to decide. 3. Whether or not heads shall roll for ineptitude and mis-management by the PSALM, ERC and other officials in the government in the operation of the Agus and Pulangi facilities; Resolution: Definitely, yes. It’s for the public to know the issues; resist shenanigans; and help find the sanctions to be imposed on the erring power officials.

  • http://twitter.com/elkapitan21 edgar

    these people in government are always inefficient in their operation. nalulugi na pala, itinutuloy pa. sino ngayon ang magbabayad nyan? buwis na naman ng taong bayan? dahil kasi hindi nila pera ang ginagamit sa operasyon, kaya mga walang pakialam.

    dapat, nagpapakatotoo lang sa operasyon. kung malulugi na, sound off na para makagawa ng solusyon. pinapatagal pa dahil nagpapaganda si ma’am sa bayan or nagpapapogi si sir sa bayan,  pero sa huli ang bayan din ang mapeperwisyo. dapat may parusa ang mga ito! 

     

  • to0

    Look at the face of our Chinese Philippine President. Do you see any sign of greed? Then, if not, why is he so interested in privatizing electricity in Mindanao. The Brownouts happening in Mindanao started just about 2 months ago. Yet, it is strangely a considence that this were the times that PNoy and Mar Roxas is drumming up the idea of privatizing electricity in Mindanao. In short, these is again a sign of Chinese conniving with each other to cheat the Filipinos. Beware of Chinese, they are bound to steal the pants that you are wearing.

  • to0

    PSALM president and chief executive officer Emmanuel R. Ledesma Jr. is a liar! He is part of these Chinese inside our government who engage in DISINFORMATION so that they can again control the Hydroelectric Dam in Iligan. Remember, Iligan hydroelectric Dam is the most efficient and greener source of electricity. Why do we have to privatize it. PNoy of Cojuangco clan, and Mar Roxas of Araneta Clan, both CHINESE just could not wait getting their share in these anomalous scheme. We Filipinos should watch out what these Chinese inside our government is doing. Just yesterday, PNoy and his Chinese cojorts is will sell our government owned airport in Poro Point. Remember, these Chinese in our government is sabotaging our economy by unloading or privatizing ALL GOVERNMENT PROPERTIES which actually belongs to the Filipino people. GREED is the primary factor why  they are doing these. Chinese and Greed is inseperable. They plan to give to the Chinese the MRT 3 extension, the existing MRT/LRT, FTI, NFA, PAGCOR/PCSO, our INternational Airport, and etc. Beware of these Chinese which dominates our government. They are up to no good.

  • Pulis Na Pogi

    this ledesma should resign and let somebody who ca do better take over!

  • wawa2172

    Hydro plants has been the source of cheap power delivered to the people and industries in Mindanao. The corruption generated by the National Power Corporation with its high paying executives and workers resulted to the downfall of the corporation. It has incurred debt from loans that only went to the pockets of the corrupt officials. Nonetheless the hydro plant is earning profit. To lure investors in Mindanao the cheap power became the come on as offered by the government. However it is to the disadvantage of the people since the cheap power will have to be removed from them to give way to industries and commercialization. The government should have made the industries buy power from its diesel and coal plants because they can surely afford it and the cheap power generated by the hydro to the households. I just don’t know if its possible but the people of Mindanao should not suffer from the inefficiency of the government that resulted to billions of pesos wasted in corruption. Well, Noy solution was for the people to bite the bullets to make sure that Aboitiz and other power generation investor to earn so much as Meralco and SMC in NCR are earning. It is only now PSALM has disclosed the 15 billion losses and we don’t know if it is the truth. Mind conditioning is the best tool for us to bite the bullet but the fact is none in the government side has taken responsibility of the power crises. For now we can only shout…brownout!!!

  • ikabod_bubwit

    so ang naghihirap na ordinaryong mamamayam na naman ang magbabayad dahil nabawasan ang kita ng mga milyonaryo? tsk…tsk…tsk…

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