ZAMBOANGA CITY, Philippines – The government is absorbing the payment of more than P500 million debt of an electric cooperative of Zamboanga del Norte to the National Power Corp. (NPC).
President Aquino signed Republic Act 10376, condoning the interest on the paid principal account of fuel compensating charge and incremental cost charge (FCC/ICC) of the Zamboanga del Norte Electric Cooperative Inc. (Zaneco) due to NPC. The STAR published the law on Monday.
Zaneco earlier settled the principal account of P30.5 million, said Riel Abejero, collection and account division chief of Zaneco.
Abejero said a P500-million interest was incurred from May 1991 to December 1998 when former Zamboanga del Norte governor Isagani Amatong blocked power rate increases, which the electric cooperative had wanted to pass on to its consumers.
Abejero thanked the President for the approval of the law, but refused to comment on what could have prompted Congress to condone the interest on Zemeco’s debt to NPC.