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PSALM Pursues P15B Unpaid Obligations Of Electric Coops
- By The Financial District
- Jul 28, 2021
- 2 min read
The Power Sector Assets and Liabilities Management Corp. (PSALM) has sent final demand letters to two electric cooperatives and a private corporation to compel them to pay over P15.01 billion-worth of combined overdue electricity bills and other charges that remain unpaid despite repeated collection notices sent to them.
PSALM president-CEO Irene Besido Garcia said the bulk of these unpaid obligations was incurred by the Lanao del Sur Electric Cooperative, Inc. (LASURECO), which, as of May 31, 2021 owed P11.98 billion in overdue power bills and another P10.37 million in unremitted universal charge (UC) collections, excluding late remittance of interest charges, or a total of P 11.99 billion.
Garcia has also sent a final demand letter to the Albay Electric Cooperative (ALECO) to settle its obligations amounting to P3.01 billion, of which P2.99 billion are unpaid electricity bills and P25.67 million are unremitted UC collections.
Waterfront Airport Hotel and Casino (WAHC) also received a final demand letter for its unpaid power bills amounting to P24.99 million, as of April 2021.
“These are long overdue accounts, some dating back more than 10 years ago. Fairness and equity dictate that these firms pay for the electricity that they had consumed just like other consumers who pay their electricity bills on time,” Garcia said.
Several demand letters were previously sent to these delinquent firms by PSALM to inform them of their unpaid dues and the legal consequences that they face for their continued failure to settle them.
With LASURECO owing PSALM a staggering P11.99 billion, Garcia sought the assistance of the National Electrification Administration (NEA), through its administrator, Edgardo Masongsong, in compelling the electric cooperative to “fully pay its outstanding power account to PSALM, to pay in full its monthly power billings on time, to regularly remit in full the monthly UC collections and to submit the corresponding UC reports.”
“This is consistent with Finance Secretary Carlos Dominguez III’s directive to PSALM to efficiently manage delinquent accounts and to aggressively pursue the collection of the overdue receivables,” Garcia said in his letter to Masongsong.
Garcia also reminded Masongsong in the letter that the “complete settlement of LASURECO’s obligations will also serve to justify the procurement of a loan for the rehabilitation of the Agus Pulangi hydropower plants for the development of Mindanao as envisioned by President Rodrigo Duterte.”
The demand letter to LASURECO was sent to its general manager Nordjiana Dipatuan Ducol, while the one to ALECO was addressed to its officer-in-charge (OIC) Belinda Pempeña and project supervisor of NEA Bienvenida Tongol.
The letter to WAHC was addressed to company president Kenneth Gatchalian and its treasurer Precilla Toriano. The three firms were each given 7 calendar days from receipt of the demand letters to pay their respective arrears or face legal action.
