Wednesday, June 25, 2025

PSALM remits P377M to govt for communities hosting power plants

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The state-run Power Sector Assets and Liabilities Management (PSALM) Corp. has remitted more than P377.51 million to the national government for the benefit of communities hosting state-owned power plants.

The state-run corporation said in a statement the remittance is composed of P135.8 million for the Energy Regulations (ER) 1-94 program, and P241.71 million for the National Wealth (SNW) fund for calendar year 2024.  

PSALM said the remittance money came from the 1 percent of gross receipts from the preceding calendar year, for the benefit of host communities.

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PSALM, which is a government-owned and -controlled corporation, manages the sale, disposition and privatization of assets and liabilities related to the power sector, particularly those previously held by the National Power Corporation (NPC). Its primary goal is to ensure the orderly liquidation of NPC’s obligations and stranded contract costs.

Under ER 1-94 as mandated by the Electric Power Industry Reform Act of 2001, energy generation companies must contribute P0.01 per kilowatt hour of total electricity sales to their host communities.

The amount will support and fund communities hosting power projects, as well as their grassroots electrification, livelihood, development, reforestation, watershed management, health and environmental enhancement projects. These projects are evaluated by the Department of Energy.

Among the communities hosting the power plants still managed by PSALM are Lumban, Majayjay, and Kalayaan in Laguna; Misamis Oriental; Marawi/Saguiran in Lanao Del Sur; Baloi/Iligan City in Lanao Del Norte; Iligan City, Lanao Del Norte; and Marawi/SaguiMaramag in Bukidnon.

PSALM said it continues to provide ER 1-94 and SNW financial benefits since there are still at least three power plants under its management that are yet to be privatized.

The NPC used to remit both its ER 1-94 and SNW funds to the DOE before PSALM assumed the responsibility in 2010. Under the Local Government Code of 1991, local government units are entitled to benefit from the SNW funds as their equitable share in the proceeds from the use and development of national wealth within their jurisdictions.

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