Pantabangan given 1-mo to pay obligations to First Gen By Joann Santiago

Pantabangan given 1-mo to pay obligations to First Gen By Joann Santiago MANILA, Feb. 13 (PNA) -- The local government of Pantabangan, Nueva Ecija has been given one-month starting Wednesday this week to pay its P8.7 billion unpaid bills to First Gen Hydro Corp. (FGHC). Energy Secretary Carlos Jericho Petilla on Wednesday said the deadline was agreed upon during a meeting that he attended along with Nueva Ecija Governor Aurelio Matias Umali, Pantabangan Mayor Romeo Borja Sr. and FGHC representatives Tuesday. He said the provincial government has donated P2 million to pay part of the municipality’s debt. Another P1 million was also donated but this will be paid next week. Also, the municipal government has paid P1.6 million and asked for a month or until March 12 to fully pay its obligations. However, the next bill will be issued February 26 wherein FGHC will be billed another P1.7 million. Petilla, however, requested FGHC representatives to reconnect the electricity connection in Pantabangan Wednesday while the debt issue is being resolved. He said the FGHC representatives agreed with the plan but “they just have to clear this up with the higher ups.” He, on the other hand, stressed that even if the power in Pantabangan was reconnected “this is just mitigating action and not a guarantee that they will have electricity in the future.” “We will continue to negotiate. This is not an energy problem but a financial and local government problem,” he said but stressed that the issue is “still my problem.” Relatively, FGHC spokesman Dennis Gonzales said a reconnection notice has been issued about 2:30 Wednesday for the municipality of Pantabangan. He, however, is not sure whether power was reconnected because there was technical problem earlier in the day. Asked until when the electricity supply will last, Gonzales said it will continue unless the local government defaults in the payment. “For the time being they have power but we will issue disconnection notice a day after the due date if they fail to pay their obligations,” he told PNA in an interview. FGHC operates the 132-megawatt Pantabangan-Masiway hydro power plant, which supplies power in the municipality. It acquired the plant from the government through an auction in November 2006. It cut off supply to the Pantabangan Electric Services (PAMES) 12 noon Monday due to the latter’s failure to pay its bill from July 2012 up to this month amounting to P8.7 million. Gonzales said PAMES’ power requirement is about 0.6 megawatt a month. (PNA) DSP/JS/ABB