Republic Act No. 12179, also known as an Act Amending Section 50 of the Electric Power Industry Reform Act of 2001 (EPIRA), sponsored by Senator Mark Villar promises to extend the corporate term of the Power Sector Asset Liabilities Management (PSALM) Corporation to efficiently liquidate the National Power Corporation’s (NPC) financial obligations and stranded contract costs.
The continuation of the PSALM will help ease the additional financial costs to electricity end-users by prohibiting the collection of stranded costs and stranded debts from consumers.
“Hindi pwedeng ipasa sa taongbayan ang pagbayad ng stranded costs at stranded debts sa pamamagitan ng pagdagdag ng mga ito sa bills ng kuryente.”
“Sa ilalim ng batas na ito, hindi pwedeng ipasa sa taongbayan ang pagbayad ng stranded costs at stranded debts sa pamamagitan ng pagdagdag ng mga ito sa bills ng kuryente,” Villar explained.
The legislator maintains that with the help of PSALM, consumers will be relieved from the additional financial burden that they are facing amidst the rising costs of electricity.
“If PSALM will continue to exist, there will be continuity in existing contracts, the management of existing assets and liabilities will be optimized, and there will be lower rates for energy supply,” the lawmaker highlighted.
The term extension of the management corporation will address operational constraints and will also help reduce funding requirements for debt servicing in case of non-renewal.
EPIRA mandated PSALM to help in asset privatization by managing the sale or disposition of NPC assets and IPP contracts. PSALM must aid in efficiently liquidating financial obligations. Most importantly, the corporation will bolster various electricity end-users to have a reliable and safe energy supply.
“PSALM Corp has proven itself by reducing financial obligations from P1.2 trillion in 2003 to 294 billion in 2023.”
“PSALM Corp has proven itself by reducing financial obligations from P1.2 trillion in 2003 to 294 billion in 2023. They were also able to settle assumed and condoned Electric Cooperative loans,” the senator highlighted.
He underscores that the Republic Act No. 12179 will be of help to Filipino consumers and lessen additional government expenditure.
The extension of the corporate life of PSALM promises lower electricity bills for consumers and support in facilitating access to electricity across the Philippines.
