PSALM seeks ERC help to collect receivables | Inquirer Business

PSALM seeks ERC help to collect receivables

By: - Business News Editor / @daxinq
/ 05:12 AM September 05, 2019

Power Sector Assets and Liabilities Management Corp. (PSALM) urged the Energy Regulatory Commission (ERC) to immediately resolve the cases pending before it involving the state-owned firm’s collection of unpaid dues amounting to P216 million from several distribution companies and industries.

PSALM president and CEO Irene Besido Garcia said these cases involved unpaid Default Wholesale Supplier Arrangement (DWSA) charges of five firms that had contested the payment of these obligations in the ERC.

These firms include Angeles Electric Corp., San Fernando Electric Light and Power Co. and Tarlac Electric Inc., which jointly questioned PSALM’s collection of P75 million in DWSA charges.


PSALM also aims to collect P2.6 million from Melters Steel Corp., which has also lodged a case against the state-owned firm and National Power Corp. before the ERC. Another pending case involving unpaid DWSA charges and power bill adjustments was filed by Steel Corp. of the Philippines amounting to P138.3 million.


“These cases delay PSALM’s collection efforts,” Garcia said. “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 Napocor (National Power Corporation).”

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 the ERC.

In her letter, Garcia stressed that “PSALM is very confident of its legal position for collecting these DWSAs. PSALM is mandated to impose the Napocor grid rate or the Wholesale Electricity Spot Market ex-post nodal energy price, whichever is higher, and a premium of 10 percent.”

Garcia said PSALM’s position on this issue was fully supported by the ERC and the Department of Energy.

PSALM’s borrowing costs amount to about 8 percent, Garcia said, which could be reduced if these pending cases were resolved soon enough and the debtors were 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 charges from 11 electric cooperatives. All these efforts of PSALM are intended to increase collections that will be used to pay for maturing obligations of Napocor.

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TAGS: Energy Regulatory Commission (ERC), Power Sector Assets and Liabilities Management Corp. (PSALM)

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