DOE seeks 30-day extension on payment to fuel suppliers

The Department of Energy (DOE) on Wednesday called on fuel or resource suppliers of power generating firms all over the country to extend the deadline of payment of obligations of their respective clients for 30 days amid the enhanced community quarantine to contain COVID-19 in Luzon.

The move is to “ensure continuous and unimpeded delivery of electricity amidst the socio-economic of the crisis,” Energy Secretary Alfonso Cusi said in a letter to private and public power sector firms.

The Energy chief called for “solidarity” by deferring payments of obligations and dues for 30 days after April 14, 2020 “for the benefit of consumers.”

Covered for the extension or deferral of payments are the following obligations:

• Coal: payments to coal suppliers of generation facilities
• Oil: payments of generation facilities for diesel, bunker, lubricants, and other derivative products of oil
• Steam: payments of geothermal facilities to their steam suppliers
• Natural gas: payments of generation facilities for natural to Malampaya

The DOE has, likewise, extended payments due to Power Sector Liabilities Management Corp. (PSALM), National Power Corp. (NPS), National Transmission Corp. (TRANSCO), and Independent Electricity Market Operator (IEMOP).

The following payments of obligations are extended for 30 days from April 14:

• Independent Power Producer Administrators’ payments to PSALM for both capacity and energy payments in the entire country
   
• Universal charges such as stranded contract cost, stranded debt, missionary electrification, and environmental charge for watershed rehabilitation and management administered by PSALM
   
• Payment of the distribution utilities to NPC or PSALM for deferred Generation Rate Adjustment Mechanism and Incremental Currency Exchange Rate Adjustment
   
• Feed-in-tariff allowance remittance to the TRANSCO of distribution utilities, retail electricity suppliers, and generators
   
• Payments to the IEMOP from generators, retail electricity suppliers, and distribution utilities for their total trading amount and other charges

“Any dispute regarding the settlement of any of the accounts payable should be put on hold,” Cusi said.

Distribution utilities, however, shall remit to their suppliers the proportional amount they have collected within the original deadline “to lessen the impact of 30-day extension of payment deadlines.”

Power distributors all over the country are also encouraged to give their consumers a period of 30 days extension of payment for bills falling due for the period March 15 to April 14.

Local government units where energy facilities are located are encouraged to extend deadline for payment of applicable taxes, fees, and charges.

Likewise, lessors of land of energy facilities are called on to extend payment of rentals for 30 days.

The entire Luzon was placed under enhanced community quarantine at 12 a.m. on Tuesday, March 17, as ordered by President Rodrigo Duterte. —LDF, GMA News