Condonation of ZANECO FCC/ICC Interest

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Republic Act No. 10376: Condonation of ZANECO FCC/ICC Interest

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Title Supreme Court: Condonation of ZANECO FCC/ICC Interest

Law: Republic Act No. 10376

Decision Date: Mar 5, 2013

Republic Act No. 10376 condones the unpaid interest on the Fuel Compensating Charge of P30,557,622.35 owed by the Zamboanga del Norte Electric Cooperative, Inc. to the National Power Corporation, relieving ZANECO of this financial burden due to circumstances beyond its control.

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Exclusion of Principal and Other Amounts from Condonation

The condonation specifically excludes the principal FCC/ICC amount of PHP 30,557,622.35 which has already been paid by ZANECO to NPC.
Any other accounts apart from the unpaid interest on the paid FCC/ICC amount are not included in this condonation.

Effectivity of the Act

The Act takes effect fifteen (15) days after its publication.
Publication must be made in at least two (2) national newspapers of general circulation.

Key Legal Implications

Only the interest portion of the FCC/ICC debt is forgiven, not the principal.
The law acknowledges that ZANECO’s unpaid interest liability arose without fault, thereby justifying relief.
The authority to transfer payables from NPC to PSALM Corporation is recognized.
The permanent relief from interest payment limits ZANECO's debt obligation to the principal only.

Procedural Notes

The law was enacted after passage by both House of Representatives and Senate.
Ratification was formalized with signature by the President of the Philippines.
Official publication and effectivity timeline ensures transparency and legal validity.

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