PSALM logs P34-B receivables from San Miguel subsidiary
By Myrna M. Velasco – July 13, 2022, 8:17 AM
from Manila Bulletin
State-run Power Sector Assets and Liabilities Management Corporation (PSALM) indicated that it is pursuing P34.04 billion worth of ‘overdue payables’ from South Premiere Power Corporation (SPPC), a subsidiary of San Miguel Corporation that served as independent power producer administrator (IPPA) of the 1,200-megawatt Ilijan gas-fired power plant.
The company noted the receivables from SPPC had been calculated as of June 30 this year; and it is based on generation payments due from the Ilijan plant, which also factors in settlement prices at the Wholesale Electricity Spot Market.
“PSALM’s computation based on WESM prices is in accordance with the provisions of the Independent Power Producer Administrator Administration Agreement (IPPA-AA) between PSALM and SPPC dated May 11, 2010,” the government-run firm emphasized.
PSALM acknowledged that SPPC already remitted P285.37 billion relative to their IPPA deal for the Ilijan power facility as of June 30, 2022, but the state-run firm stressed “these remittances of SPPC were insufficient because they were not based on the WESM prices.”
The government-run company argued that “SPPC’s computations of generation payments were based on its power supply agreement with Meralco (Manila Electric Company), of which PSALM is not a party.”
PSALM, in particular, has stipulated that “there is ongoing litigation between PSALM and SPPC in the regional trial court of Mandaluyong City to determine, among others, the correct computation of the generation payments,” adding that the case is still in pre-trial stage.
It further specified that the Ilijan plant’s ownership was already turned over to San Miguel last month, in compliance with a court order.
“The transfer of the Ilijan’s ownership from PSALM to SPPC in June 2022 was done in compliance with the writ of injunction issued by RTC Mandaluyong and without prejudice to the eventual outcome of the said case,” PSALM stressed.
The state-owned company added that while the case remains unresolved and should there be any rate increase, “SPPC’s remittances to PSALM should be recomputed and adjusted accordingly, consistent with SPPC’s own legal position that such remittances to PSALM should be based on the power rates in its power supply agreement with Meralco.”
SPPC recently filed an application with the Energy Regulatory Commission (ERC) seeking temporary price adjustment on its 2019 power supply pact with Meralco; and that filing had been anchored on the surging prices of fuel being utilized for electricity generation. (MMV)
