PSALM seeks recalculation of P62-B damages from Napocor suit

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the government corporation tasked to privatize state-owned power assets, is seeking a recalculation of the P62 billion it has to pay to former employees of the National Power Corp. (Napocor).

During a Senate hearing on the Department of Energy’s (DOE) budget for 2015, PSALM president Emmanuel Ledesma Jr. said the actual amount owed to employees could be just roughly P30 billion.

“My understanding is that the amount is closer to 50 percent of (P62 billion),” said Ledesma.

At 50 percent or roughly P30 billion, PSALM estimates an increase in the universal charge of 13 centavo per kilowatt-hour (kwh) over a period of 10 years from the previous estimate of 26 centavos.

However, Ledesma said there is still no decision yet on whether or not the government corporation would indeed pass this on to consumers.

 “We’re studying all the options,” Ledesma said.

The universal charge is a separate line in consumers’ electricity bills. It is being charged to all electricity consumers.

Napocor lost a class suit filed by former members of its Drivers and Mechanics Association (DAMA) who were terminated in 2003, and is being asked to pay P62 billion in damages, according to a Supreme Court resolution dated June 30, 2014.

The petitioners comprised about 8,018 beneficiaries and based on their representation to the court, are claiming P60 billion in payables.  The remaining amount represents legal fees.

In accordance with the Supreme Court’s decision, the Quezon City Regional Trial Court’s sheriffs issued notices of garnishment to PSALM.

But on Tuesday, the Supreme Court lifted the garnishment order slapped on PSALM.

Ledesma said the lifting of the garnishment order is a welcome move as it would allow PSALM to continue operating plants and paying its debts.

At present, PSALM is responsible for the fuel supply and operations budget of its power plants such as the Malaya Thermal Power Plant in Rizal, Power Barges (PBs) 101, 102 and 104 and the Naga Coal-fired Thermal Power Plant (CFTPP) in Cebu.

In all, PSALM’s plants produce 430 megawatts in dependable capacity.