Davao Del Norte, Compostela Valley face massive blackouts on P500-M unpaid dues
MANILA, Philippines – Davao del Norte and Compostela Valley face massive blackouts because the electric cooperative serving these provinces has unpaid dues of over P500 million to the government.
Davao del Norte Electric Cooperative Inc. (DANECO) owes the Power Sector Assets and Liabilities Management (PSALM) Corporation P576.45 million as of April 30, according to the state firm Thursday, June 5.
From March 2013 to April 2014, the average monthly billing of DANECO stood at P92.26 million but the electric cooperative’s average monthly payment was only P64.36 million or only 69.76% of the amount due.
DANECO’s obligations are expected to continuously increase due to the shortfall in its payments to PSALM.
PSALM issued a final demand to DANECO for failure to comply with its obligations and the period to comply with such lapsed on March 21, PSALM President and Chief Executive Officer Emmanuel Ledesma Jr. said.
Ledesma said PSALM has diligently exhausted all possible remedies to assist DANECO in the payment of its obligations but to no avail. Such remedies included approval for debt restructuring, grant of extension, and issuance of final demand letters.
PSALM already requested the Department of Energy (DOE) for approval of the issuance of the notice of disconnection to DANECO, in compliance with Section 4.1.D. of the Implementing Rules and Procedures of DOE Circular No. DC2010-05-0006 (“Terminating the DWSA for WESM and Declaring a Disconnection Policy”).
The grounds and conditions for the issuance of the notice of disconnection include the failure of a customer to comply with its financial obligations with PSALM under their power supply agreements or any existing contracts for the supply of electricity and restructuring agreement. – Rappler.com