Lower power rates starting this month

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The Power Sector Assets and Liabilities Management Corp. (PSALM) will stop collecting the P0.0543 per kilowatt hour kWh Universal Charge for Stranded Contract Costs (UC-SCC) effective this month.

The state-run firm said this will translate to a reduction of P5.43 for every 100 kWh of electricity consumption in the entire country.

All electricity distribution and collecting utilities has been advised of the move.

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A decision of the Energy Regulatory Commission dated April 10, 2019 allowed PSALM to recover P5,117,060,647.80 through the aforementioned UC-SCC. However, PSALM said based on its computation, the recoverable amount could be covered by the UC-SCC imposed in the January 2020 billing period.

UC-SCC is the excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy.

The amount is also allocated to pay the remaining financial obligations government incurred due to the construction of new power plants to alleviate power shortages in the 1990s and early 2000.

Meanwhile, PSALM said it is ready to start the third round of public bidding for the 650 megawatts Malaya thermal power plant and land where it sits in Pililla, Rizal.

Interested parties can participate in the bidding that starts today February 3 and which will last until March 12.

A pre-bid conference will be held on February 13 to accept comments and concerns. The actual bid opening is on April 15.

PSALM is determined to privatize the asset which is sold on an as-is-where-is basis this year by taking the necessary steps to adjust the minimum bid price.

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