TransCo logs P6.4-billion receivables from Meralco
Tuesday, July 11, 2006
By MYRNA M. VELASCO
Receivables of P6.373 billion from giant utility firm Manila Electric Company (Meralco) was logged by National Transmission Corporation, with bulk of the amount accounting for the overdue ancillary services linked with the distribution firm’s pending settlement deal with National Power Corporation.
Data from the transmission firm noted that of the total, around P4.282 billion or 67 percent was due to the NPC-Meralco contract calculated from September 26, 2002 to October 25, 2004. The rest are recently-billed collectibles, mainly for ancillary services.
The settlement agreement firmed up between NPC and Meralco in July 2003 is still pending for decision by the Energy Regulatory Commission.
There was a revised filing on the total settlement amount to P14.319 billion; but NPC still maintains a P42-billion receivables from the utility firm in its balance sheet.
The regulatory body has noted that it will have to weigh the legal implications on considering the revised settlement lodged by the parties since the amount in the original filing was set higher at P20 billion.
The estimate was based on NPC’s claim lodged during the mediation process at P27 billion; and deducting the utility firm’s counter-claim of roughly P7.0 billion.
The main contention of the regulators was on the fact that the NPC-Meralco filing for joint compliance of the P14.3 billion came after the public hearings were already concluded.
Meralco, however, maintained that cost adjustment in the mediation deal is warranted, since there is a specific clause providing for future revisions on the cost based on the final computation of the utility firm’s volume of procurement.
Taking reference from Clause 1.3 of the agreement, Meralco noted that its actual monthly offtake (volume of purchased power from NPC) was reckoned against baseline quantities.
And since its procurement was higher during remaining months of the contract, the originally computed shortfall was trimmed down, thus, the reduction in net settlement amount.
It was previously concurred to by parties that in case Meralco cannot meet prescribed baseline quantity, it was indicated that there could be upward adjustment in the settlement costs; but the reverse will happen if it will procure more at the remaining stretch of the supply contract.
Once approved, there have been pronouncements made that electricity rates paid for by Meralco consumers will be reduced; given that its contracted independent power producers will also be run at minimum energy quantity or at their contract levels.
posted by philpower @ 1:01 PM,
