PSALM stands pat on P20B owed by San Miguel
By Jordeene Sheex Lagare – August 13, 2018
from The Manila Times
THE Power Sector Assets and Liabilities Management Corp. (PSALM) maintains its position that San Miguel Corp. still owes them over P20 billion for the administration of the Ilijan power plant in Batangas.
PSALM had earlier claimed in its financial statement that it has receivables of P22.39 billion from South Premier Corp. (SPPC) as the facility’s independent power producer administrator (IPPA). SPPC, a unit of SMC Global Power Holdings Corp., the power arm of San Miguel, bagged the contract in May 2010.
However, PSALM President and Chief Executive Officer Irene Joy Garcia clarified to reporters that she is not certain if the amount mentioned in previous reports already includes interest charges.
“We’re computing interest from the time that they failed to pay in accordance with the schedule. What happened is, when we bill them, it’s based on our legal position. When they pay us, it’s based on their legal position,” Garcia explained.
Last month, San Miguel President and Chief Operating Officer Ramon Ang claimed the government owes the listed conglomerate $3.24 billion (P172.4 billion) as of June this year for managing the 1,200-megawatt (MW) facility in the province.
Ang said that San Miguel, through SPPC, has already remitted $5.28 billion or about P281 billion, allowing PSALM to gain $631 million from the total payments, broken down into generation payments of P205.33 billion and fixed monthly total payments of P58.92 billion.
San Miguel was willing to pay the P20 billion outstanding dues claimed by PSALM provided the latter pays them P200 billion and does not keep changing the terms of reference for handling the Ilijan power plant, he added.
However, Garcia asserted that billings to San Miguel are computed based on PSALM’s legal position. .
“Suffice it to say that what we’re doing is our billing statement to them is based on the legal position that PSALM has submitted to the court. We are not changing that until such time that there is a final decision by a court of law that says you are wrong,” Garcia said.
Garcia also refuted Ang’s previous statement that PSALM keeps on asking for an extension to reply. “We have a motion to hear our affirmative defenses. We are waiting for the court to set a hearing on our affirmative defenses,” she added.
Sought for comment, Ang said the contract is based on a binding concession agreement and a formula approved by the Energy Regulatory Commission (ERC).
“Ilijan is a base-load power plant. Its output should not be traded in the WESM [Wholesale Electricity Spot Market] to protect power consumers,” Ang said in a statement on Thursday.
“PSALM is asserting a formula that will expose the power users to WESM’s volatility. Now tell me, whose interest are they protecting? Because obviously they are not making reliable power affordable and accessible to consumers,” he said.
In the meantime, he said San Miguel will wait and let the court decide on the matter.
