Lawmaker seeks probe on Napocor and PSALM finances

Eastern Samar Rep. Ben Evardone wants the Lower House to investigate the finances of two government-owned corporations crucial to the country’s energy needs, in light of what he says is a looming power crisis and intolerable power rate hikes. A resolution to investigate the financial condition and funding of the National Power Corp. and the Power Sector Assets and Liabilities Management (PSALM) Corp. was filed in the House of Representatives. In filing House Resolution 106, Evardone said the House energy committee should look into the financial conditions and funding of Napocor and PSALM. He also asked the committee to check the status and payment schedules of Napocor’s stranded debts and contract costs, and the salaries and other incentives of PSALM’s personnel. The Electric Power Industry Reform Act (EPIRA) was enacted in 2001 to restructure the electric power industry and institute energy reforms, centered on privatization, in order to effectively address the huge debt of the Napocor and avert a power crisis, Evardone explained. Nine years after EPIRA created PSALM, Napocor continues to carry its debt burden and another power crisis looms with the specter of a series of power rate hikes to the detriment of consumers, he said. On July 1, 2010, PSALM filed two separate petitions for permission to pass on to consumers stranded contract costs and debts of Napocor as part of the Universal Charge, in accordance with Section 34 (b) of Republic Act 9136, he said. Napocor and PSALM also filed a separate petition to recover P8.8 billion in fuel cost and contracted independent power producer costs, as well as P8.5 billion in foreign exchange costs in a six-month period. Evardone cited reports showing hefty and irregular disbursements of salaries, bonuses, and night shift differentials that have been allegedly included and made part of the stranded contract costs and debts of Napocor. “In line with the austerity measures of the present administration, it is paramount to inquire into these serious allegations of exorbitant and irregular disbursement at the PSALM," he said. —JV/VS, GMANews.TV