The National Electrification Administration said Monday it is working with two Mindanao electric cooperatives to resolve their financial obligations to Power Sector Assets and Liabilities Management Corp. that exceeded P13 billion.
NEA and PSALM executives met with local government officials of Lanao del Sur, Maguindanao and Sultan Kudarat to look for solutions on the plight of cash-strapped Lanao del Sur Electric Cooperative and Maguindanao Electric Cooperative Inc.
“I will bring the matter to the NEA board of administrators,” NEA administrator Emmanuel Juaneza said on the possible financial assistance that the agency could provide to LASURECO.
Lanao del Sur Governor Mamintal Alonto Adiong Jr. met with PSALM, LASURECO and NEA executives to resolve the mounting debt of the electric cooperative.
LASURECO agreed during the meeting to write a letter to PSALM containing its commitment to pay an amount that will be determined by the parties. PSALM agreed to defer LASURECO’s disconnection in the interest of consumers.
Adiong said he would discuss with the municipal mayors of the province how they could help LASURECO pay its obligation to PSALM and asked for three months to resolve the matter.
PSALM manages the assets and liabilities of National Power Corp. as mandated under the Electric Power Industry Reform Act of 2001.
NEA executives also met with MAGELCO to resolve its outstanding obligations with the National Grid Corporation of the Philippines.
Sultan Kudarat Governor Suharto Mangudadatu and Maguindanao Governor Bai Mariam Sangki-Mangudadatu attended the meeting.
“We have to first improve our services,” Teng Mangudadatu said as a prerequisite to complying with the payment. “And we will develop our financial program further.”
MAGELCO officials agreed to restructure its arrears with NGCP to protect the interests of customers and be allowed to continue developing its services and financial programs.
NGCP president Anthony Almeda agreed to defer the disconnection pending an immediate submission of the proposed restructuring.
“This is a collaboration between NEA and the local governments of Maguindanao and of Sultan Kudarat. We are in full support,” Juaneza said.
NGCP also acknowledged the proposal submitted by MAGELCO and effectively deferred the disconnection.