GOVERNMENT-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) will study the implications of a proposal suggested by some lawmakers to withdraw petitions filed for the recovery of the Universal Charge (UC) for stranded debts (SD) and stranded contract costs (SCC).

Emmanuel Ledesma Jr., PSALM president and chief executive, said they are awaiting the formal resolution of the House of Representatives on PSALM’s UC applications with the Energy Regulatory Commission (ERC) before taking the necessary actions.

“PSALM will assess the implications of the proposal and will continuously seek other possible sources to narrow the huge gap between the privatization proceeds and the outstanding maturing obligations of the National Power Corp. should the PSALM Board adhere to the recommendation to withdraw the UC applications,” Ledesma said.

 PSALM’s UC application for UC-SD and UC-SCC at P0.0313 per kilowatt-hour (kWh) and P0.3666/kWh, respectively is still pending with the ERC. If approved, the UC will increase the electricity bill of consumers.

PSALM also proposed to the ERC that the UC-SCC be recovered over 15 years instead of the four-year recovery period mandated in the ERC amended guidelines. Longer recovery period will bring down the UC-SCC to P0.06/kWh.

Ledesma also belied the comments made by Trade Union Congress of the Philippines Representative Raymond Mendoza that PSALM, ERC, and the Department of Energy are remiss in their respective obligations to bring down power rates. PSALM was accused of “milking the cow” by draining the public of cash in its move to pass on the recovery of NPC’s stranded obligations to consumers.