SMC's Ramon Ang offers to pay P22.68 billion to Psalm

SMC's Ramon Ang offers to pay P22.68 billion to Psalm




Business tycoon Ramon Ang of San Miguel Corporation caves in.
San Miguel Corporation(SMC) just announced that it has offered to pay in advance P22.68 billion in capacity charges amid the ongoing court battle over the administration of the 1,200-megawatt (MW) Ilijan combined-cycle power plant.

The SMC President said the conglomerate made the proposal charges amid the ongoing court battle over the administration of the 1,200-megawatt (MW) Ilijan combined-cycle power plant, Ang said in a prepared statement.
San Miguel Corporation's Ramon Ang
(photo credit to owner)

As explained capacity charges represent capital payment by SMC to the state-run corporation as administrator of the Ilijan power plant, spread over the term of its contract.
“Right now, the best and quickest way we can do this ahead of a decision on our case, is to fully pay the P22.6 billion remaining balance in capacity charges of SPPC (South Premiere Power Corp.) for the Ilijan power plant, in full,” Ang said.
Ang further explains that the amount it is offering would also help Psalm raise funds for the national treasury that can be used for various state projects, including funding efforts aimed at addressing the coronavirus disease 2019 (Covid-19).

However, in a letter to Psalm, the SMC president clarified his offer is separate from the alleged “overdue receivables” of its power arm SPPC amounting to P23.9 billion.
The amount of P23.9 billion, the supposed unpaid amount to Psalm is the subject of a court case pending since 2015the differences stems from the different interpretation of generation charges.


“We hope that Psalm interprets this prepayment as a gesture of good faith on our part. Like them, we also have a purpose. Ours is to provide consumers with stable and more affordable electricity. This is one of the main reasons why the Ilijan capacity has always been sold to bilateral customers, and not the WESM (Wholesale Electricity Spot Market),” Ang said.
“We have to let the courts decide on the case and let due process take its course. Both the Supreme Court and the Court of Appeals have already said it is the Mandaluyong RTC (Regional Trial Court) that has jurisdiction over the case. Let’s not muddle the facts and confuse the public,” Ang said.




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Report from Manila Times



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