TransCo presses collection of P7B in unpaid Meralco bills

The National Transmission Corp. (TransCo) expects the Manila Electric Co. (Meralco) to settle some P7-billion worth of unpaid bills within the year.

"We’ve sent them our demand letter last few months, and we’re waiting to hear from them on that demand. It’s an old settlement," TransCo president Alan T. Ortiz said.

Ortiz said he had talked personally with Meralco president Jesus Francisco and indicated TransCo’s willingness "to sit down with them next week to negotiate, settle and close this account."

The TransCo chief said receivables from Meralco have been increasing and could now be more than P7 billion including interest.

They’re in a better financial shape than a few years ago, and I expect that they will settle and expect will close the issue soon. The fact that they want to acquire our STAs means they have cash flow," Ortiz said.

He noted that Meralco was able to realize some savings on electri-city rates due to its participation in the wholesale electricity spot market (WESM).

"Because of WESM, they were able to reduce their charges. So if they are able to do this, we think, they would be able to settle this liability with us," he said.

Ortiz said the negotiation with Meralco may involve restructuring of the receivables.

"We may negotiate on how they will lower the amount and the mode of payment and how long they have to pay it," he said.

As of end-2005, the total receivables from Meralco amounted to P6.37 billion, 67 percent of which or P4.28 billion pertained to its overdue ancillary services accounts due to shortfall from its contract with the National Power Corp. (Napocor) from Sept. 26, 2002 to Oct. 25, 2004 plus imbalance charges.

Ortiz said this amount will continue to accumulate if not resolve now. "This has been increasing and we want to settle and close the book once and for all," he said.