The City Government said last week it will not necessarily default on its P55 million unpaid electric bills to Paleco but would refer the matter to the City Legal Office, according to the City Council.

“We do not want to escape from our obligations to the Palawan Electric Cooperative (Paleco) but we are bringing it to the legal office for appropriate actions,” Councilor Feliberto Oliveros said.

Paleco, in a meeting with City Government officials, earlier warned that they would be forced to cut the City Government’s power service unless the payment was settled.

Oliveros, however, clarified that Paleco might not take any action because they were able to give P4 million as an advance payment. Paleco allowed the City Government to pay at least P8 million but the city was only able to give half of the amount.

The Council also claimed that Paleco might not want to cut the City Government’s electricity line because they might also be forced to require Paleco to settle with the city its business tax and real property tax.