There are matters that are better left for the judicial branch of our government to decide. One of this is the issue of whether or not
-owned
(PSALM) in connection with the latter's administration of the 1,200-megawattt Ilijan combined-cycle power plant and if yes, how much. PSALM is a government-owned and a controlled corporation (GOCC) created under the Electric Power Industry Reform Act, or EPIRA, to privatize the assets of the
Among the assets sold by PSALM was the Ilijan power plant in Batangas with a contracted capacity of 1,200 megawatts to SPCC at a price of
But despite ongoing discussions, PSALM in 2015 unilaterally terminated the independent power producer administration (IPPA) agreement deal with SPPC over alleged non-payment of so-called generation payments under the agreement. But according to SMC, the said non-payment, initially pegged at
SMC filed a case with the Mandaluyong Regional Trial Court in 2015 for willful breach of contract. The company was also able to secure a preliminary injunction preventing PSALM from terminating the IPPA while the court is still hearing the main case.
PSALM questioned the preliminary injunction with the
PSALM appealed the CA decision to the
5, 2019. Meanwhile, PSALM questioned in 2018 the Mandaluyong trial court's jurisdiction over the matter, but the lower court ruled against it. PSALM went to the CA which dismissed its petition in August of last year.
PSALM has filed a motion for reconsideration. But what is disconcerting is the fact that some members of the
Leyte Rep.
But SPPC, in a statement, has pointed out that the EPIRA's provision on the original and exclusive quasi-judicial jurisdiction of the ERC is clarified by the law's implementing rules and regulations which provide that the ERC has original and exclusive quasi-judicial jurisdiction over disputes between or among energy sector participants only if such disputes relate to the ERC's powers, functions and responsibilities provided for in the EPIRA and the EPIRA IRR. According to the company, the issue between SPPC and PSALM is outside of the powers, function and responsibilities of the ERC, especially since the latter had no participation in the privatization of the IPPA between the owner of the Ilijan Power Plant and the Napocor, or in the IPPA agreement between SPPC and PSALM.
In a statement, SPPC emphasized that PSALM, ERC, and the legislature are bound by the clarification of the ERC's jurisdiction over disputes between electricity industry players because the EPIRA IRR were promulgated by the
" One of the issues before the Mandaluyong RTC is whether SPPC indeed owes PSALM. SPPC stressed that it has not received monthly billing statements from PSALM, contrary to the latter's claim that indicate an alleged deficiency claim which PSALM said has now ballooned to
SPPC has also said that it is updated in its payments to PSALM based on monthly billing statements the government entity sends, using SPPC's legal position on, and computation of, generation payments. To date, the company has already paid
SPPC and PSALM are at loggerheads over how said generation payments should be computed. While PSALM is computing generation payments due from SPPC based on prevailing Wholesale Electricity Spot Market (WESM) prices, particularly from November to
SPPC explained that selling its capacity to WESM would have put the company in violation of their power supply contract approved by ERC and which was designed specifically to protect consumers from volatile and higher electricity prices in the WESM. What many do not realize is that San Miguel could have built a brand new power plant with the same capacity at an amount far less that the billions in dollars in capacity fees that it has paid to PSALM so far for the ageing Ilijan plant.
A brand new and modern facility would cost only
These congressmen should not allow their personal agenda to muddle the real issues here. For comments, e-mail at mareyes@philstarmedia.
com
© Pakistan Press International, source