First Gen Hydro Power Corp. on Thursday restored the power supply in areas serviced by the government-run Pantabangan Municipal Electric Services (Pames), after the two parties reached an agreement for the payment of the distributor’s arrears amounting to more than P80 million.
In a statement, FG Hydro said it would accept as payment the proceeds from the Pantabangan municipal government’s share in real property, national wealth and local business taxes.
The assignment was formally proposed in a previous meeting with Local Government Secretary Jesse M. Robredo and Nueva Ecija Governor Aurelio M. Umali, who had interceded and put forward an acceptable compromise agreement.
There was also a suggestion to assign to FG Hydro the municipality’s share from the Internal Revenue Allotments (IRA), but FG Hydro said it had declined this particular proposal.
FG Hydro owns and operates the 132-megawatt Pantabangan-Masiway hydroelectric complex and supplies power to Pames.