Cabinet reviewing Meralco’s huge debt
Thursday, December 22, 2005
MANILA – The Cabinet is undertaking a review of the huge indebtedness of the Manila Electric Company (Meralco) to the government arising from the power that the firm contracted to buy from the government-owned National Power Corporation (Napocor), Press Secretary and Presidential Spokesman Ignacio R. Bunye said in his weekly column ‘The View From The Palace.’
Bunye cautioned, however, against any speculation on the outcome of the Cabinet review.
The Palace official was reacting to the banner story last Sunday (December 18) of the Philippine Daily Inquirer on the reported Meralco indebtedness to the government which it placed at P42 billion.
“The Cabinet is still in the process of reviewing its options on how to deal with the huge indebtedness of Meraclo but we are not dishing out speculations until a final decision is made that would be lawful, just and for the best interest of the people,” Bunye wrote in his column.
He pointed out, however, that “this government is consistently for the public welfare and the protection of power consumers.”
Under a power supply agreement with Napocor, Meralco had committed to buy 3,600 megawatts of electricity daily from Napocor starting in 2001.
But Meralco’s power purchases from Napocor have been falling over the years as the power firm turn more and more to its affiliated independent power producers for its energy supply.
posted by philpower @ 1:34 PM,
