The Commission on Audit says the Power Sector Assets and Liabilities Management Corporation is solidarily liable with Napocor to the Southern Philippines Power Corporation
MANILA, Philippines – The Commission on Audit has determined that the Power Sector Assets and Liabilities Management Corporation is liable to pay the Southern Philippines Power Corporation sums of $5.774 million and P68.644 million.
To understand the significance, a brief history: Napocor, a state-owned firm, once held these liabilities. However, with the introduction of the Electric Power Industry Reform Act in 2001, a major portion of Napocor’s responsibilities, assets, and liabilities transitioned to PSALM. This restructuring aimed at ensuring a more competitive and efficient power industry in the Philippines.
SPPC argued that PSALM should be held liable in settling Napocor’s liabilities since it took over the old state corporation’s existing generation assets, liabilities, power contracts, and other assets.