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Samar electric co-op prepays obligations to PSALM

/ 04:04 AM September 01, 2020

Samar 1 Electric Cooperative (Samelco 1) has prepaid about P222.5 million it owed to the state-run Power Sector Assets and Liabilities Management Corp. (PSALM), which is Samelco 1’s electricity supplier.

Samelco 1 is the distributor of electricity in the towns of Gandara, Matuguinao, San Jorge, Sta. Margarita, Tarangnan and Pagsanghan, as well as Calbayog City—all in the pro­vince of Samar.

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Also, Samelco 1 has a contract for the supply of electri­city with PSALM, which is good until Dec. 25.

“PSALM is grateful to Samelco 1 for this prepayment, which will be used for paying the remaining obligations assumed by PSALM from the National Power Corp.,” PSALM president and chief executive Irene Besido-Garcia said in a statement.

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Garcia said the cooperative was currently in the payment of PSALM’s monthly power bills and, because of that, Samelco 1 could avail itself of their prompt payment discount program starting in September.

Further, Samelco 1 is also updated in the remittance to PSALM of the universal charges it collected from member-customers.

According to PSALM, the prepayment was remitted to PSALM through a loan secured by Samelco 1 from Development Bank of the Philippines (DBP).

Samelco 1’s debt restructuring agreement with PSALM has an amortization schedule until April 2026. With Samelco 1 taking advantage of the agreement’s prepayment provision, the cooperative is given the option to look for better financing terms if opportunity arises.

PSALM said DBP was one of its partner banks that was offering financing to its customers with restructured agreements and special payment arrangements. It said DBP offers flexible payment schemes, longer payment tenor and even lower interest rates. INQ

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TAGS: Business, PSALM‎, Samelco
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