The National Electrification Administration (NEA) is exploring means on how it can extend financial assistance to Lanao del Sur Electric Cooperative (LASURECO), of which power supply had been set for disconnection due to its P12.9 billion worth of unpaid obligations with state-run Power Sector Assets and Liabilities Management Corporation (PSALM).

In a recent meeting with LASURECO, NEA Administrator Emmanuel P. Juaneza indicated that he will apprise the agency’s board on the financial assistance being sought by the electric cooperative so it can continually serve its customers.

There had been no specific detail on the amount and nature of financial assistance that NEA can bestow to the power utility and a timeframe has not been given also if this can still be resolved before the Duterte administration will bow out from office in the next two weeks.

NEA similarly conveyed that, for the meantime, LASURECO will be writing to PSALM and part of that correspondence is its “commitment to pay an amount that shall be determined.”

The electrification agency narrated that Lanao del Sur Governor Mamintal Adiong Jr. primarily called for a meeting via zoom recently. The main goal of that activity was to seek a mutually acceptable solution on how the electric cooperative can settle its colossal obligations with PSALM.

It is worth noting that PSALM, being the owner of power assets in Mindanao that include the Agus-Pulangui hydropower complex, serves as the main supplier of electricity to LASURECO, thus, the financial obligations related to the utility’s power purchases accrued through the years.

There were also previous pleas to the Office of the President to write off the humongous liabilities of LASURECO but that proposal did not fly, hence, that prompted PSALM to continually pursue the payments it has been seeking from the power utility.

Nevertheless, with the targeted supply cut-off to LASURECO, even the provincial government of Lanao del Sur already dipped its hands into the issue because it will be its constituents who will be adversely affected in the process.

NEA added “Governor Adiong committed to discussing with the municipal mayors of the province how they can help LASURECO pay its obligation to PSALM and requested PSALM for three months to carry this out.”

Once plans are firmed up, NEA emphasized that the local government of Lanao del Sur will set another meeting with PSALM as well as with the other relevant energy agencies “to come up with a resolution” for the propounded debt settlements.