THE Commission on Audit has granted the petition of Southern Philippines Power Corporation (SPPC) against the National Power Corp (NPC) and Power Sector Assets and Liabilities Management Corp (PSALM) for payment of P80.36 million and $6.2 million contractual obligations.
In an 11-page decision, the COA en banc held that the SPPC’s claim is now beyond dispute after the obligation was upheld by the Energy Regulatory Commission in 2013 and affirmed by the Court of Appeals on February 20, 2015.
The Supreme Court also sustained both rulings in its decision dated July 4, 2016, which attained finality on January 16, 2017.
The decision was issued on October 1, 2024 but was released only yesterday (February 11).
“Wherefore, the Petition for Money Claim of Southern Philippines Power Corporation (SPPC) against the National Power Corporation and Power Sector Assets and Liabilities Management Corporation, for payment of contractual obligations under the Energy Conversion Agreement for the period of August 26, 2010 to April 25, 2016, amounting to US $6,199,684.61 and P80,358,014.48, is hereby granted,” the commission said.
Based on the records of the COA, the claim stemmed from the construction of a 50MW Bunker C Fired Diesel Power Plant in General Santos City in 1996.
Records showed it was the consortium of Alsons Power Holdings and Tomen Corporation that signed the ECA with the NPC under a Build-Own-Operate (BOO) scheme but SPPC came to assume the rights and obligations through an accession agreement undertaking signed on January 31, 1997.
The power station was completed on March 18, 1998 and from that point until 2004, the SPPC consistently nominated 50 megawatts of its capacity to the NPC.
On February 2, 2005, the SPPC notified the NPC that an additional 5 MW would be generated. Starting in April 2005, the SPPC guaranteed a total of 55 MW.
In 2008, SPPC sought payment for the 55MW capacity it gave NPC since 2005. NPC contested the obligation, starting more than a decade of legal battles until the matter was resolved by the Supreme Court.
Initially, it was only NPC that was held liable but on March 8, 2023, the COA Commission Proper issued Decision No. 2023-002 declaring that PSALM was solidarily liable to NPC for the payment of the money claim.
The NPC and the PSALM argued that the SPPC still had to prove that it was entitled to compensation for the additional period from August 2010 to August 2016.
They pointed out that the original claim was only for 2005 to 2010 which was already paid by the NPC in November 2023 in the sums of P68.644 million and $5.774 million.
The COA disagreed, noting that the SPPC had already submitted sufficient documentary support to prove its claim.
“During the pendency of the case in the ERC, CA and SC, SPPC continued to supply the NPC the total capacity of 55MW in compliance with its obligation under the ECA which amounted to US $6,199,684.61 and P80,358,014.48, and undisputed by NPC. Such amounts are determinable from the invoices, billing and other documents, hence a liquidated claim,” the COA said.
