Quantcast
Latest Stories

Another power disconnection notice to Olongapo City


OLONGAPO CITY—The state-run Private Sector Assets and Liabilities Management Corp. (Psalm) has asked the National Grid Corp. of the Philippines (NGCP) to disconnect this city from the Luzon power grid due to unpaid debts amounting to P5 billion.

In compliance with the directive, the NGCP, which operates the country’s power transmission system, advised the city government that it would disconnect power at noon on Wednesday. It did not do so, however, when Psalm earlier issued a disconnection notice on June 25.

Mayor Rolen Paulino said the city would appeal the decision of Psalm, a government agency tasked with selling assets of the National Power Corp. (Napocor) to the private sector.

Last week, the city council approved a debt restructuring plan that was different from the draft agreement between the city government, as represented by then Mayor James Gordon Jr., and Psalm.

Paulino said the council approved the release of P20 million a year to the agency and

P2 million a year to pay the city government’s debts to San Miguel Energy Corp. (SMEC), energy arm of San Miguel Corp.

“We’re also asking Psalm to give us time to assess, whether this P5-billion debt is real and how [it was incurred]. We also have to know whether Olongapo has the financial capacity to pay the debt,” the newly elected mayor said.

Emmanuel Ledesma Jr., Psalm president and chief executive officer, informed Gordon and the city council on June 18 that the city government had until June 25 to settle its obligations that had gone up to P5.082 billion as of May 31, before it cuts Olongapo’s power supply.

City officials said the debt included the accumulated arrears of the police, public schools and other facilities administered by national government agencies. Gordon said the amount ballooned due to systems losses and interests arising from the unpaid obligation.

Gordon had presented to the council a draft restructuring agreement to settle a portion of the debt from the sale of the Public Utility Department (PUD), which used to distribute electricity in the city.

PUD was sold for P610 million to Olongapo Electricity Distribution Co. Inc. (OEDC), which was given a 25-year franchise to take over the city’s power distributor.

Records showed that the council had allocated P500 million from the profits from the PUD sale to settle a portion of the city’s debt to Psalm. At least P50 million has been set aside for retiring PUD workers and another P60 million to pay Olongapo’s debts to SMEC.

Jose Abaya, OEDC president, confirmed the NGCP notice of power disconnection. “But NGCP knows [the PUD] had been transferred to the OEDC and recognizes the complexity [of the issue]. Psalm may request [for the disconnection] but it will be NGCP to decide whether to disconnect [power in the city] or not,” he said.

Napoleon Viterbo, head of the NGCP district that covers Olongapo, confirmed that power supply would be cut off by Wednesday noon.

Abaya said it would be up to Psalm to see if the payment arrangement under the city resolution for debt restructuring   is acceptable. “If it’s OK, then they can withdraw the request for disconnection,” he said. Robert Gonzaga, Inquirer Central Luzon


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: National Grid Corp. of the Philippines , National Power Corp , News , Private Sector Assets and Liabilities Management Corp. , Regions




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. Kim Henares needs a reprimand, says Cayetano
  2. ‘No real progress in PH if dynasties not dismantled’
  3. More legal woes for Cedric Lee
  4. Massive infra spending set
  5. OFW brings MERS virus to Philippines
  6. DOJ to NBI: Arrest Cedric Lee, 4 others
  7. Cardinal Tagle to faithful: Join politics to clean it
  8. Estrada, Gigi Reyes denied access to evidence from other respondents
  9. Lacson’s wife loses diamond earring to thieves but recovers jewelry quickly with police arrest
  10. DOJ orders arrest of Cedric Lee
  1. Suspect in Vhong Navarro mauling tries to leave PH
  2. MH370 co-pilot made mid-flight phone call – report
  3. Netizens cry: 6/55 Lotto was rigged
  4. I’ll follow my conscience on Estrada, says JV Ejercito
  5. ‘Wife of Jesus’ theory papyrus not fake – Harvard study
  6. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  7. Gay college instructor arrested for oral sex with student
  8. ‘King’ Yabut and I: Driver bares Makati dad ‘abuses’
  9. It was difficult having Japanese blood
  10. Palace: We can’t blame increase in population on Vitangcol
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Pork payoffs to newscasters Erwin Tulfo, Del Prado, others bared
  4. UP back on top as ‘average’ student aces bar
  5. Rookie, lady cops lauded for quick response to MOA heist
  6. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  7. Malaysia averts another air tragedy; pilot lands troubled plane safely
  8. Revilla says he was joking; Lacson stands by his story
  9. Revilla ‘consulted’ Lacson on how he evaded arrest
  10. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
Advertisement

News

  • Henares on Pacquiao bashing: I did not start this
  • Drilon, Nancy Binay urge Filipinos to strengthen faith
  • ‘Yolanda’ toll now at 6,300 – NDRRMC
  • ‘Mom, I love you,’ says text from student on sinking ferry
  • Moderate earthquake jolts southern Iran
  • Sports

  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • Business

  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Technology

  • Netizens seething in anger over Aquino ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace
    Advertisement