TeaM Energy Pushes NPC Claims

Japanese joint venture firm TeaM Energy Philippines has been chasing after its claims against National Power Corporation (NPC) on the trading of the capacities of its Sual and Pagbilao coal-fired plants, including the volumes in excess of the contract levels.

This was in reference to an agreement it earlier inked with NPC, giving the power firm the discretion on the trading of the capacity of said plants.

To resolve the dispute, the Energy Regulatory Commission (ERC) has directed that the Power Sector Assets and Liabilities Management Corporation (PSALM) be treated as a party-respondent in the case so the amounts to be settled by NPC with TeaM Energy can be sufficiently reconciled.

In its ruling, the ERC opined that it “is not convinced that PSALM should be dropped as a party respondent in the case,” despite the company’s assertion that it was not a party in the original memorandum of agreement (MOA) between NPC and TeaM Energy.

“The reconciliation of data and accounts involved in determining the liability of NPC to TPEC, if any, including the determination of allowable deductions, cannot be completely and expediently settled if PSALM is not made a party respondent,” the regulatory body added.

It has been emphasized that the signing of the Operation and Maintenance Agreement (OMA) between NPC and PSALM in 2009 effectively transferred all of the former’s responsibilities, obligations, assets and liabilities to its transferee-firm, hence, PSALM cannot anymore veer away from that reality.

In its filing with the ERC though, TeaM Energy indicated that it is not objecting to PSALM’s position that it is not a party in the case; and that the reconciliation of accounts is a matter that NPC and PSALM would have to resolve internally.

TeaM Energy contended that the position of PSALM could be taken as a “proof of NPC’s continuing bad faith, as it is an attempt to delay and muddle the issues of the instant case.”

However, NPC countered that PSALM cannot be dropped as a respondent party because it “has been responsible for the trading, dispatching, billing and settlements of all IPP plants as well as receiving revenues therefrom.”

The power firm added that its obligations with TeaM Energy “will necessarily be subject to reconciliation and allowable deductions which cannot be completed without PSALM’s participation.”

It thus emphasized that by involving PSALM in the resolution of the case, “there will be a complete and expedient determination of all the issues.”

https://www.mb.com.ph/articles/383177/team-energy-pushes-npc-claims