PHThe Department of Finance (DOF) has ordered the Power Sector Assets and Liabilities Management Corp. (PSALM) to cut off electricity supply to Maguindanao Electric Cooperative (MAGELCO) and Lanao del Sur Electric Cooperative (LASURECO) for failure to pay their combined outstanding obligations amounting to over P16 billion.
Finance Secretary Carlos Dominguez has instructed PSALM to strictly enforce its credit and collection policy against MAGELCO and LASURECO.
DOF said it is not PSALM’s mandate to subsidize electricity costs and that the agency does not have the budget to do so.
MAGELCO and LASURECO’s poor payment performance has been a long-standing problem, stemming from both cooperatives’ financial mismanagement and low collection efficiency from consumers.
PSALM has repeatedly demanded payment from MAGELCO and LASURECO, with the threat to curtail their energy allocation should they fail to settle in full their power bills and limit their power allocation equivalent to their actual payments to the state-run firm.
MAGELCO has ρáíd only P45.5 million out of the total power bill amounting to P147.2 Million for December 2021 to April this year.
It has outstanding payables to the government amounting to P3.8 billion, while LASURECO’s outstanding payables to PSALM amounted to P12.9 billion as of the end of April
Finance Secretary Carlos Dominguez has instructed PSALM to strictly enforce its credit and collection policy against MAGELCO and LASURECO.
DOF said it is not PSALM’s mandate to subsidize electricity costs and that the agency does not have the budget to do so.
MAGELCO and LASURECO’s poor payment performance has been a long-standing problem, stemming from both cooperatives’ financial mismanagement and low collection efficiency from consumers.
PSALM has repeatedly demanded payment from MAGELCO and LASURECO, with the threat to curtail their energy allocation should they fail to settle in full their power bills and limit their power allocation equivalent to their actual payments to the state-run firm.
MAGELCO has ρáíd only P45.5 million out of the total power bill amounting to P147.2 Million for December 2021 to April this year.
It has outstanding payables to the government amounting to P3.8 billion, while LASURECO’s outstanding payables to PSALM amounted to P12.9 billion as of the end of April