DOE looking for solutions to power supply problem amid PSALM issues

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MANILA — The government is now actively looking for other means to deal with the possibility of power supply problems in 2015, according to Department of Energy (DOE) Secretary Carlos Jericho L. Petilla.

“We are studying options to make sure Malaya’s operation is not affected by the Dama (Napocor-Drivers and Mechanics Association) case,” Petilla said in a text message. “We are also looking into the supply implication of Kalayaan and Ilijan.”

The Power Sector Assets and Liabilities Management (PSALM) is currently facing a court order to pay P60.24 billion to Napocor-Dama. In addition, Regional Trial Court (RTC) of Quezon City sent notices to the private sector power generation administrators and distributors to report the PSALM funds. Once found in their possession, the PSALM will be up for seizure or garnishment.

According to PSALM CEO and president Emmanuel R. Ledesma Jr., this move could further affect the impending power supply issues in 2015. He said that the PSALM is there to help secure back-up power, but if this will be curtailed it will hamper its operations. He added that the more pressing problem is regarding Napocor’s debt and how it will be paid before the due date.

“Actually that [power plant lease] is the least of our worries. If the income of PSALM is garnished, they will not have enough funds to purchase fuel,” Petilla said. “The major plants that might be affected are Ilijan, Kalayaan, and Malaya. But in particular, Malaya will be most hard hit without fuel purchase.”

Petilla added that the absence of the 350-megawatt Unit 2 of Malaya can also affect power problems next year.

“The problem is we had counted on [Malaya 2] to run in 2015 and despite that we still have a shortfall in supply. If Malaya 2 happens not to run, the shortfall will be worse,” Petilla said.

The 2001 Electric Power Industry Reform Act paved the way for the creation of PSALM. This aims to privatize or sell the assets of Napocor to assist in debt payment. During the reorganization, employees of Napocor were terminated.