State-run Power Sector Assets and Liabilities Management Corp. said Tuesday the overdue payables of South Premiere Power Corp. have reached P34.04 billion as of June.
“This amount is based on PSALM’s computations of generation payments for the 1,200-megawatt Ilijan natural gas combined cycle power plant that takes into consideration the prices in the Wholesale Electricity Spot Market,” PSALM said in a statement.
SPPC is a power unit of San Miguel Corp., while the WESM is the trading floor of electricity.
PSALM said its computation based on WESM prices was in accordance with its independent power producer administrator administration agreement provisions with SPPC dated May 11, 2010.
“While SPPC has already remitted to PSALM about P285.37 billion as of 30 June 2022, it is PSALM’s view that these remittances of SPPC were insufficient because they were not based on the WESM prices,” the agency said.