TeaM Energy Corp., a joint venture between Japan’s Tokyo Electric Power Co. and Marubeni Corp., on Tuesday disputed the charges filed by San Miguel Energy Corp. against its officials.
TeaM Energy claimed San Miguel had not been remitting the proceeds from the sale of the disputed excess capacity to the Wholesale Electricity Spot Market.
“Since September 2009, being the appointed IPPA [independent power producer administrator], SMEC has been trading and collecting the proceeds of the sale of our excess capacity to the WESM. In fact, since October 2013, SMEC has not been remitting to TPEC a substantial portion of the proceeds of its sale of the excess capacity to WESM without basis and to TPEC’s detriment,” TeaM Energy said.
San Miguel Energy earlier asked the Justice Department to prosecute the head of state-run Power Sector Assets and Liabilities Management Corp. for plunder in connection with the alleged P14-billion loss over its 2009 contract with an independent power producer for the Sual coal-fired power plant in Pangasinan.
San Miguel Energy filed the complaint against PSALM president and chief executive Lourdes Alzona, who was accused of violating the Anti-Graft and Corrupt Practices Act.
Included in the complaint were Team Philippines Energy Corp. president Suguru Tsuzaki and Team Sual Corp. executive vice president Kochi Tamura.
“We are shocked and perplexed by the reported charges brought against our companies, TeaM Sual and TeaM (Philippines)… These charges are baseless and without any merit,” the company said.
TeaM Energy said it invested substantial capital in the Philippines to build power plants, adding its track record would show that it abided by and respected all Philippine laws and regulations and operated with integrity in all its business dealings and contracts.
“It is unfortunate that contracts validly entered into by our company are now being interfered with by third parties that are not privy to them based on uninformed and misguided appreciation of facts. This will only result in a chilling effect to the inflow of foreign capital needed to sustain the continued development of the country,” the company said.
TeaM Energy expressed confidence “we will be able to clear the name of our organization, and of our officials who were unfairly and unjustly dragged into this non-issue.”
TeaM Energy said the Sual plant was designed and constructed to produce a net capacity of 1,200 megawatts and that only 1,000 MW had been contracted to National Power Corp. under an agreement on May 20, 1994.
Team Sual pays the transition supply contract for the 1,000-MW contracted capacity to Napocor. It owns the 200-MW excess capacity.
TeaM Sual said contrary to the allegations of San Miguel Energy, the 200 MW excess capacity already existed when the plant was built in 1999.
TeaM Sual and TeaM Philippines had several agreements with the government regarding the excess capacity and sold the excess capacity to various customers over the past 16 years.
“Obviously, this was the case even prior to the appointment of SMEC as independent power producer administrator in 2009,” the company said.