ERC junks bid to open Napocor books on asset valuation

MANILA, Philippines -  The Power Sector Assets and Liabilities Management Corp. (PSALM) will not be compelled to open its books on the valuation of National Power Corp. (Napocor) assets.

This as the Energy Regulatory Commission (ERC) dismissed the petition filed by consumer group National Association of Electricity Consumers for Reforms Inc. (Nasecore) to allow it to examine the books of Napocor.

Nasecore specifically asked the ERC to suspend the hearing on the new basic rate application of PSALM/Napocor “due to the alleged prejudicial question relative to the petition for the adoption of the proposed asset valuation guidelines filed by PSALM and the compliance with request for confidential treatment of information.”

ERC executive director Francis Saturnino Juan said the commission, in its order, believed that the information on the Napocor assets are deemed “confidential” and may be disadvantageous to the government while it is in the midst of selling Napocor assets and contracts.

“The Nasecore petition wants us to allow the opening of the appraisal of Napocor assets which we think should be treated with confidentiality,” he said.

PSALM said while it is selling Napocor’s assets, it’s not prudent for it open its appraisal and internal valuation report to the public as this may be known to prospective bidders and will put PSALM at a disadvantageous position.

“The commission concurs with PSALM and Napocor as to the sensitivity of the information contained in the appraisal reports which poses imminent risk of exposing the same to unfair competition. Hence, the commission deems it necessary to treat the appraisal reports as confidential in nature,” the order said.

But Juan was quick to point out that this particular ERC decision has nothing to do with the commission’s ongoing process of looking into the debts of Napocor and the probe of where the Napocor privatization proceeds went.

ERC is currently looking into the books of PSALM to determine where the latter used Napocor’s privatization proceeds.

But PSALM, for its part, reiterated that the proceeds from the privatization of the power assets of the Napocor have been used and continue to be used to settle the financial obligations of the government’s generating firm as clearly stipulated in the provisions of the Electric Power Industry Reform Act.