Energy Secretary Jose Rene D. Almendras is pushing for the collection of the universal charges that will allow the government to pay P139-billion worth of stranded debts and contract costs.
Almendras assured the public there were ways to help mitigate the impact of the universal charges on power consumers.
He admitted that the non-collection of universal charges for stranded debts (UC-SD) and stranded contract costs (UC-SCC) might adversely affect the government as it would cause a “financial drag of about a few billion pesos” on state-owned Power Sector Assets and Liabilities Management Corp. (PSALM), the entity tasked to clear the debts of National Power Corp.
“The UC should push through, but there are ways to mitigate it. I cannot discuss what we’re going to do right now. We have several options,” he said.
“We should let the Energy Regulatory Commission (ERC) decide on what is a fair universal charge and then we discuss alternatives on how to make those things work or how we can mitigate the impact,” he added.
Almendras’ remarks were in reaction to reports that certain lawmakers were pushing for the withdrawal of PSALM’s petition to collect P139-billion worth of universal charges. PSALM had announced that it was open to such proposal but admitted that it had yet to study its potential financial implications.
The Department of Energy’s own recommendation will, however, depend on the decision of the Joint Congressional Power Commission (JCPC), which Almendras was hoping to be made within the year.
“When they say we need to defer it, then we need to find money since there are loans to be paid,” he said.
As of the end of 2010, the obligations of Napocor amounted to $15.8 billion.
PSALM president and CEO Emmanuel R. Ledesma Jr. earlier explained that the Electric Power Industry Reform Act (Epira) allowed the recovery of the UC since it was a critical component of the government’s liability management program for the power sector. The UC collections will be matched with existing debt repayment schedules to reduce PSALM’s borrowing requirements.
Ledesma also stressed that PSALM, the ERC and the Department of Energy were not remiss in their respective obligations to bring down power rates.
PSALM has been criticized for passing on to the consumers the burden of paying Napocor’s stranded obligations.
“It is important to point out that the recovery of the universal charge is mandated under the Epira and PSALM has stringently followed the amended guidelines issued by the ERC in determining the amount of the universal charge for stranded debts (UC-SD) and stranded contract costs (UC-SCC),” Ledesma had said.
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By: Amy R. Remo
Source: Philippine Daily Inquirer, Nov. 7, 2011
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