MANILA, Philippines — The grid operator has held off from disconnecting Maguindanao Electric Cooperative, Inc. (Magelco) from the power grid after the latter submitted a plan to restructure their outstanding debts, according to the National Electrification Administration (NEA).
This comes around a week after the Finance department told state-run Power Sector Assets and Liabilities Management Corporation (PSALM) to "curtail the power supply of Magelco" and halt the connection of Lanao del Sur Electric Cooperative (Lasureco) for failing to pay their outstanding obligations of over P16 billion and for not paying their power bills on time.
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The Department of Finance in a June 8 statement pointed to alleged financial mismanagement and low collection efficiency among the consumers of both power distributors, which caused PSALM to incur more borrowings to cover the shortfall.
In a statement Tuesday, NEA said the National Grid Corp. of the Philippines (NGCP) President Anthony Almeda agreed to hold off from disconnecting Magelco from the grid if it is able to submit a plan on the "restructuring of arrears"
"As of Friday, 10 June 2022, NGCP has acknowledged the proposal promptly submitted by Magelco, officially and effectively deferring the disconnection," NEA said.
The restructuring of outstanding payments is crucial in improving power services in the area and developing Magelco's financial program, Maguindanao Gov. Teng Mangudadatu was quoted as saying.
NGCP confirmed the details of NEA's statement, but said they can only speak for themselves and the transmission charges and arrears on their end. Spokesperson Cynthia Alabanza said in an online message that PSALM also has to agree on the deferment of disconnection since they are in charge of the supply side.
In a separate release, NEA said Lasureco has vowed to settle the outstanding balance through an initial commitment addressed to PSALM.
The local government of Lanao Del Sur has asked PSALM to not disconnect the electric cooperative's power supply in favor of its consumers.
Lanao Del Sur Gov. Mamintal Alonto Adiong, Jr. has also committed to speaking with mayors in the province over a three-month period and asking how they can help Lasureco settle its dues.