PSALM Advisory

PSALM ADVISORY TO ITS STAKEHOLDERS RE BILLING

6 May 2020


The Power Sector Assets and Liabilities Management Corporation (“PSALM”) earlier issued its Advisories to Stakeholders dated 26 March 2020, 2 April and 17 April 2020 (“PSALM Advisories”) pursuant to the Government’s declaration of a State of Calamity throughout the Philippines in Proclamation No. 929 dated 16 March 2020, the advisories of the Energy Regulatory Commission (“ERC”) dated 17 and 26 March 2020 and 15 April 2020, and the advisories of the Department of Energy (“DOE”) dated 18 and 23 March 2020 and 16 April 2020 (“ERC and DOE Advisories”).

Pursuant to Executive Order No. 112 dated 30 April 2020, the enhanced community quarantine (“ECQ”) in the National Capital Region (NCR) and in high risk geographical areas in Luzon, Visayas and Mindanao has been extended up to 15 May 2020 by President Rodrigo Roa Duterte to curb the spread of the Coronavirus Disease 2019 (“COVID-19”). The ERC then issued its Advisory dated 5 May 2020, amending some items in its Advisory dated 15 April 2020.

The pertinent dates and deadlines mentioned in the PSALM Advisory dated 17 April 2020 shall continue to be effective and applicable to all its power customers, Universal Charge (UC) collecting entities (CEs) and IPPAs operating in areas that are placed under General Community Quarantine (GCQ) starting 1 May 2020.

Meanwhile, in order to implement the ERC Advisory dated 5 May 2020, PSALM hereby issues the following policies that shall be applicable only to those power customers, UC CEs and IPPAs that continue to be under ECQ from 1 May 2020 up to 15 May 2020:

  1. Payment of all fees to PSALM on regular power bills (PB), Deferred Accounting Adjustments (DAA) on GRAM and ICERA, ACRM True-up Adjustments, remittances entitled to prompt payment discount (PPD), Restructured Accounts (RA) on power, and Ancillary Services (AS) payments due from the National Grid Corporation of the Philippines (NGCP), falling due during the ECQ period of up to 15 May 2020, shall be entitled to a grace period, without imposing any interest and penalties, following the extended due dates as indicated below. For this purpose, the accumulated (deferred) amount of payments to PSALM falling due within the ECQ shall be amortized in four (4) equal monthly installments, payable in the four (4) succeeding billing months following the end of the ECQ. The installments shall be reflected as a separate item in the PSALM billings due on those succeeding months.

    The Table below provides the details of PSALM’s power and ancillary services billings within the ECQ period and their corresponding extended due dates:

    TABLE 1: PSALM’s Billings on Power and Ancillary Services Due Within the ECQ Period & their Extended Due Dates
    Type of Bill Billing Period Original Due Date Due Date/s
    in view of the
    Extended ECQ
    Payments Due
    FEBRUARY BILLINGS
    RA Monthly Amortization February 2020 28 February 2020 N.A. N.A.
    DAA/ACRM only – with PPD February 2020 10 March 2020 N.A. N.A.
    Regular PB – PPD (Luzon and Visayas) 26 Jan. to 25 Feb. 2020 13 March 2020 N.A. N.A.
    Regular PB - PPD (Mindanao) 26 Jan. to 25 Feb. 2020 18 March 2020 N.A. N.A.
    Regular PB – Non PPD 26 Jan. to 25 Feb. 2020 25 March 2020 8 June, 25 June, 24 July, 25 August 2020 Deferred PB consolidated with PB due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only – w/o PPD February 2020 25 March 2020 8 June, 25 June, 24 July, 25 August 2020 Deferred DAA/ACRM consolidated with DAA/ACRM due within ECQ, payable in 4 equal monthly installments
    NGCP Ancillary Services (AS) 26 Jan. to 25 Feb. 2020 31 March 2020 28 June, 30 June, 31 July, 31 August 2020 Deferred AS consolidated with AS due within ECQ, payable in 4 equal monthly installments
    MARCH BILLINGS
    RA Monthly Amortization March 2020 31 March 2020 1 June, 30 June, 31 July, 31 August 2020 Deferred RA consolidated with RA due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only - with PPD March 2020 10 April 2020 1 June 2020 (full amount of DAA/ACRM originally due 10 April 2020) Deferred DAA/ACRM to be paid in full
    Regular PB – PPD 26 Feb. to 25 March 2020 15 April 2020 1 June 2020 (full amount of Regular PB originally due 15 April 2020) Deferred PB to be paid in full
    Regular PB – Non PPD 26 Feb. to 25 March 2020 24 April 2020 8 June, 25 June, 24 July, 25 August 2020 Deferred PB consolidated with PB due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only – w/o PPD March 2020 24 April 2020 8 June, 25 June, 24 July, 25 August 2020 Deferred DAA/ACRM consolidated with DAA/ACRM due within ECQ, payable in 4 equal monthly installments
    NGCP AS 26 Feb. to 25 March 2020 30 April 2020 8 June, 30 June, 31 July, 31 August 2020 Deferred AS consolidated with AS due within ECQ, payable in 4 equal monthly installments
    APRIL BILLINGS
    RA Monthly Amortization April 2020 30 April 2020 1 June 2020, 30 June, 31 July, 31 August 2020 Deferred RA consolidated with RA due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only - with PPD April 2020 8 May 2020 1 June 2020 (full amount of DAA/ACRM originally due 8 May 2020) April DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 March to 25 April 2020 15 May 2020 1 June 2020 (full amount of Regular PB originally due 15 May 2020) April PB to be paid in full
    Regular PB – Non PPD 26 March to 25 April 2020 25 May 2020 8 June 2020 April PB + 1st of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD April 2020 25 May 2020 8 June 2020 April DAA/ACRM billing + 1st of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 March to 25 April 2020 29 May 2020 8 June 2020 April AS billing + 1st of 4 installments of deferred consolidated AS billings
    MAY BILLINGS
    RA Monthly Amortization May 2020 29 May 2020 1 June 2020 May RA billing + 1st of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD May 2020 10 June 2020 15 June 2020 (full amount of DAA/ACRM originally due 10 June 2020) May DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 April to 25 May 2020 15 June 2020 15 June 2020 May PB to be paid in full
    Regular PB – Non PPD 26 April to 25 May 2020 25 June 2020 25 June 2020 May PB + 2nd of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD May 2020 25 June 2020 25 June 2020 May DAA/ACRM billing + 2nd of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 April to 25 May 2020 30 June 2020 30 June 2020 May AS billing + 2nd of 4 installments of deferred consolidated AS billings
    JUNE BILLINGS
    RA Monthly Amortization June 2020 30 June 2020 30 June 2020 June RA billing + 2nd of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD June 2020 10 July 2020 10 July 2020 June DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 May to 25 June 2020 15 July 2020 15 July 2020 June PB to be paid in full
    Regular PB – Non PPD 26 May to 25 June 2020 24 July 2020 24 July 2020 June PB + 3rd of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD June 2020 24 July 2020 24 July 2020 June DAA/ACRM billing + 3rd of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 May to 25 June 2020 31 July 2020 31 July 2020 June AS billing + 3rd of 4 installments of deferred consolidated AS billings
    JULY BILLINGS
    RA Monthly Amortization July 2020 31 July 2020 31 July 2020 July RA billing + 3rd of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD July 2020 10 August 2020 10 August 2020 July DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 June to 25 July 2020 14 August 2020 14 August 2020 July PB to be paid in full
    Regular PB – Non PPD 26 June to 25 July 2020 25 August 2020 25 August 2020 July PB + 4th of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD July 2020 25 August 2020 25 August 2020 July DAA/ACRM billing + 4th of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 June to 25 July 2020 31 August 2020 31 August 2020 July AS billing + 4th of 4 installments of deferred consolidated AS billings
    AUGUST BILLINGS
    RA Monthly Amortization August 2020 31 August 2020 31 August 2020 August RA billing + 4th of 4 installments of deferred

    The PPD shall apply to both the current power bill including deferred GRAM and ICERA and ACRM true-up adjustments, and deferred power bill and DAA/ACRM amounts, falling due on 15 March to 15 May 2020, if these are remitted to PSALM in full on the due dates indicated above for PPD. Those who opt to pay the deferred power bill and DAA/ACRM amounts in four (4) equal installments will no longer be entitled to avail of the PPD. Billings with due dates not falling within the ECQ period of up to 15 May 2020 and not covered by the DOE Advisories and ERC Advisories shall thus follow the original due dates, and the failure to pay on or before such original due dates shall incur interests and penalties pursuant to existing agreements and in accordance with the credit and collection policies of PSALM. This is based not just on the ERC and DOE Advisories but also on the relevant provisions of the contracts with PSALM including the force majeure provisions.

  2. For the Universal Charges (UC) collected by Collecting Entities (CEs) that are in the areas covered by the ECQ up to 15 May 2020 covering Missionary Electrification (ME), Environmental Charge for Watershed Rehabilitation and Management (EC) and Stranded Debts (SD), to be remitted to PSALM as the UC Administrator, the CEs are expected to implement the same grace period and payment scheme, as provided in item 1 above, to all electricity end-users in compliance with the ERC and DOE Advisories re ECQ Extension. In this regard, PSALM shall likewise grant the same grace period to CEs, without imposing any interest and penalties, on UC remittances falling due within the ECQ period. In turn, PSALM’s disbursements thereof to UC beneficiaries falling due within the ECQ period shall also be following the same grace period or number of days as given to CEs. The UC remittances to PSALM and PSALM’s disbursements of the UC remittances due during the ECQ Period of up to 15 May 2020 are provided in Tables 2 and 3 below:

    TABLE 2: Collecting Entities’ UC Remittances to PSALM Due Within the ECQ Period & their Extended Due Dates
    UC Collection Period Original Due Date Due Date/s in view of the Extended ECQ Remittances Due to PSALM
    February 16 March 2020 15 June, 15 July, 15 August and 15 September 2020 Deferred; payable in 4 installments
    March 15 April 2020 15 June, 15 July, 15 August and 15 September 2020 Deferred; payable in 4 installments
    April 15 May 2020 15 June, 15 July, 15 August, and 15 September 2020 Deferred; payable in 4 installments
    May 15 June 2020 15 June 2020 Current + 1st of 4 installments of deferred amount
    June 15 July 2020 15 July 2020 Current + 2nd of 4 installments of deferred amount
    July 15 August 2020 15 August 2020 Current + 3rd of 4 installments of deferred amount
    August 15 September 2020 15 September 2020 Current + 4th of 4 installments of deferred amount

    TABLE 3: PSALM’s Disbursements to UC Beneficiaries for UC Due Within the ECQ Period
    UC Collection Period Original Due Date Due Date/s in view of the Extended ECQ Disbursements Due to UC Beneficiaries
    February 20 March 2020 22 June, 20 July, 20 August & 21 September 2020 Deferred; payable in 4 installments
    March 20 April 2020 22 June, 20 July, 20 August & 21 September 2020 Deferred; payable in 4 installments
    April 20 May 2020 22 June, 20 July, 20 August & 21 September 2020 Deferred; payable in 4 installments
    May 22 June 2020 22 June 2020 Current + 1st of 4 installments of deferred amount
    June 20 July 2020 20 July 2020 Current + 2nd of 4 installments of deferred amount
    July 20 August 2020 20 August 2020 Current + 3rd of 4 installments of deferred amount
    August 21 September 2020 21 September 2020 Current + 4th of 4 installments of deferred amount

    UC remittances by CEs to PSALM and UC disbursements by PSALM to beneficiaries that are not falling due within the ECQ period of up to 15 May 2020, shall follow the usual due dates. The CEs’ failure to pay on or before such due dates shall incur interests and penalties.

  3. Anent the PSALM Advisory to its Stakeholders Re Submission of 2019 Universal Charge (UC) Annual Reports and March 2020 Billing, Collection/Remittance Reports and Special Bank Receipts (SBRs) dated 02 April 2020, PSALM also hereby extends the deadlines for the submission of the following UC reports to those CEs that operate in areas under ECQ up to 15 May 2020:

    TABLE 4: Extended Deadlines for the Submission of UC Reports
    Period UC Reports Original Due Date Extended Due Date
    CY 2019 Annual Audit Report 30 April 2020 01 June 2020
    February 2020 Billing Report 20 March 2020 1 June 2020
    Collection/Remittance and SBRs Reports 16 March 2020
    March 2020 Billing Reports 20 April 2020 1 June 2020
    Collection/Remittance and SBRs Reports 15 April 2020
    April 2020 Billing Reports 20 May 2020 1 June 2020
    Collection/Remittance and SBRs Reports 15 May 2020

    Deadlines for the submission of reports to PSALM that are not falling due within the ECQ period shall follow the usual due dates, and failure to submit on or before such due dates shall incur interests and penalties.

  4. Due dates for payments of Independent Power Producer Administrators (IPPAs) to PSALM that fell due after the issuance of the PSALM Advisory of 26 March 2020 and up to 14 April 2020, for both capacity and energy payments, were extended by the said PSALM advisory. Subsequently, all payments of IPPAs to PSALM were extended by the PSALM Advisory dated 17 April 2020. Thus, for clarity, all IPPAs shall continue to follow the deadlines mentioned in the PSALM Advisory dated 17 April 2020. It is only when it can be sufficiently shown to the satisfaction of PSALM that an IPPA supplies electric energy to a DU that serves an area that remains under ECQ beyond 30 April 2020, that a proportionate amount of the payments due PSALM from the said IPPA can be deferred and subjected to the extensions mentioned in this latest PSALM Advisory. To be clear, payments from DUs that serve areas that are no longer under ECQ beyond 30 April 2020 shall correspondingly be remitted by these IPPAs to PSALM no later than the extended deadlines mentioned in the PSALM Advisory dated 17 April 2020.

  5. Consistent with the ERC and DOE Advisories intending to lessen the impact of the grace period given to electricity power industry stakeholders and to help manage the cashflow in the energy supply chain to ensure the continuous supply of electricity, PSALM strongly reiterates its requirement to power customers, CEs, NGCP and IPPAs to immediately remit to PSALM any proportionate amounts that they may have already collected from their own customers, if any, without awaiting the extended due dates provided in Items 1 and 2 above. Customers who have the ability to pay are encouraged to continue to timely settle their bills with PSALM within the original due dates.

Matters contained in the PSALM Advisories of 26 March 2020 and 02 and 17 April 2020 that are not amended by, or inconsistent with, this Advisory shall remain valid. The PSALM Advisory dated 17 April 2020 shall be applicable to those power customers, UC CEs and IPPAs operating in areas under ECQ up to 30 April 2020, while this instant PSALM Advisory shall be applicable to those operating in NCR and in high risk areas in Luzon, Visayas and Mindanao that continue to be under ECQ until 15 May 2020.

PSALM will issue the necessary supplemental or amendatory advisories should there be further updates or amendment to the Advisories issued by the ERC and DOE, or if there are instructions or decisions that will be issued by the PSALM Board of Directors relative to the Advisories of PSALM.

Signed this on 6 May 2020 in Quezon City, Philippines

PSALM ADVISORY TO ITS STAKEHOLDERS RE BILLING

17 April 2020


The Power Sector Assets and Liabilities Management Corporation (“PSALM”) earlier issued its Advisories to Stakeholders dated 26 March and 02 April 2020 (“PSALM Advisories”) pursuant to the Government’s declaration of a State of Calamity throughout the Philippines in Proclamation No. 929 dated 16 March 2020, the advisories of the Energy Regulatory Commission (“ERC”) dated 17 and 26 March 2020, and the advisories of the Department of Energy (“DOE”) dated 18 and 23 March 2020 (“ERC and DOE Advisories”).

In view of the extension of the enhanced community quarantine (“ECQ”) in Luzon until 30 April 2020 due to the Coronavirus Disease 2019 (“COVID-19”), the ERC and the DOE issued their respective advisories dated 15 and 16 April 2020 (“ERC and DOE Advisories re ECQ Extension”) to provide guidance to all electric power industry stakeholders.

Accordingly, to implement the ERC and DOE Advisories re ECQ Extension, PSALM hereby issues the following amendments to the earlier-issued PSALM Advisories:

  1. For the payment of all fees to PSALM on power billings and ancillary services in the entire country falling due during the original and extended ECQ period covering 15 March 2020 to 30 April 2020, PSALM shall grant a grace period to concerned entities without imposing any interest and penalties, as indicated below. For this purpose, the accumulated amount of payments to PSALM falling due within the ECQ shall be amortized in four (4) equal monthly installments, payable in the four (4) succeeding billing months following the end of the ECQ. The installments shall be reflected as a separate item in the PSALM billings due on those succeeding months.

    This Advisory shall cover the payments due from all PSALM customers, namely distribution utilities (DUs), industries, ecozones and government entities on regular power bills (PB), Deferred Accounting Adjustments (DAA) on GRAM and ICERA, ACRM True-up Adjustments, remittances entitled to prompt payment discount (PPD), Restructured Accounts (RA) on power, and Ancillary Services (AS) payments due from the National Grid Corporation of the Philippines (NGCP).

    The Table below provides the details of PSALM’s power and ancillary services billings within the ECQ period and their corresponding extended due dates:

    TABLE 1: PSALM’s Billings on Power and Ancillary Services Due Within the ECQ Period & their Extended Due Dates
    Type of Bill Billing Period Original Due Date Due Date/s
    in view of the
    Extended ECQ
    Payments Due
    FEBRUARY BILLINGS
    RA Monthly Amortization February 2020 28 February 2020 N.A. N.A.
    DAA/ACRM only – with PPD February 2020 10 March 2020 N.A. N.A.
    Regular PB – PPD (Luzon and Visayas) 26 Jan. to 25 Feb. 2020 13 March 2020 N.A. N.A.
    Regular PB - PPD (Mindanao) 26 Jan. to 25 Feb. 2020 18 March 2020 N.A. N.A.
    Regular PB – Non PPD 26 Jan. to 25 Feb. 2020 25 March 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred PB consolidated with PB due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only – w/o PPD February 2020 25 March 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred DAA/ACRM consolidated with DAA/ACRM due within ECQ, payable in 4 equal monthly installments
    NGCP Ancillary Services (AS) 26 Jan. to 25 Feb. 2020 31 March 2020 29 May, 30 June, 31 July, 31 August 2020 Deferred AS consolidated with AS due within ECQ, payable in 4 equal monthly installments
    MARCH BILLINGS
    RA Monthly Amortization March 2020 31 March 2020 29 May, 30 June, 31 July, 31 August 2020 Deferred RA consolidated with RA due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only - with PPD March 2020 10 April 2020 15 May 2020 Deferred DAA/ACRM to be paid in full
    Regular PB – PPD 26 Feb. to 25 March 2020 15 April 2020 15 May 2020 Deferred PB to be paid in full
    Regular PB – Non PPD 26 Feb. to 25 March 2020 24 April 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred PB consolidated with PB due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only – w/o PPD March 2020 24 April 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred DAA/ACRM consolidated with DAA/ACRM due within ECQ, payable in 4 equal monthly installments
    NGCP AS 26 Feb. to 25 March 2020 30 April 2020 29 May, 30 June, 31 July, 31 August 2020 Deferred AS consolidated with AS due within ECQ, payable in 4 equal monthly installments
    APRIL BILLINGS
    RA Monthly Amortization April 2020 30 April 2020 29 May 2020, 30 June, 31 July, 31 August 2020 Deferred RA consolidated with RA due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only - with PPD April 2020 8 May 2020 25 May 2020 April DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 March to 25 April 2020 15 May 2020 25 May 2020 April PB to be paid in full
    Regular PB – Non PPD 26 March to 25 April 2020 25 May 2020 28 May 2020 April PB + 1st of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD April 2020 25 May 2020 28 May 2020 April DAA/ACRM billing + 1st of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 March to 25 April 2020 29 May 2020 29 May 2020 April AS billing + 1st of 4 installments of deferred consolidated AS billings
    MAY BILLINGS
    RA Monthly Amortization May 2020 29 May 2020 29 May 2020 May RA billing + 1st of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD May 2020 10 June 2020 10 June 2020 May DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 April to 25 May 2020 15 June 2020 15 June 2020 May PB to be paid in full
    Regular PB – Non PPD 26 April to 25 May 2020 25 June 2020 25 June 2020 May PB + 2nd of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD May 2020 25 June 2020 25 June 2020 May DAA/ACRM billing + 2nd of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 April to 25 May 2020 30 June 2020 30 June 2020 May AS billing + 2nd of 4 installments of deferred consolidated AS billings
    JUNE BILLINGS
    RA Monthly Amortization June 2020 30 June 2020 30 June 2020 June RA billing + 2nd of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD June 2020 10 July 2020 10 July 2020 June DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 May to 25 June 2020 15 July 2020 15 July 2020 June PB to be paid in full
    Regular PB – Non PPD 26 May to 25 June 2020 24 July 2020 24 July 2020 June PB + 3rd of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD June 2020 24 July 2020 24 July 2020 June DAA/ACRM billing + 3rd of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 May to 25 June 2020 31 July 2020 31 July 2020 June AS billing + 3rd of 4 installments of deferred consolidated AS billings
    JULY BILLINGS
    RA Monthly Amortization July 2020 31 July 2020 31 July 2020 July RA billing + 3rd of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD July 2020 10 August 2020 10 August 2020 July DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 June to 25 July 2020 14 August 2020 14 August 2020 July PB to be paid in full
    Regular PB – Non PPD 26 June to 25 July 2020 25 August 2020 25 August 2020 July PB + 4th of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD July 2020 25 August 2020 25 August 2020 July DAA/ACRM billing + 4th of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 June to 25 July 2020 31 August 2020 31 August 2020 July AS billing + 4th of 4 installments of deferred consolidated AS billings
    AUGUST BILLINGS
    RA Monthly Amortization August 2020 31 August 2020 31 August 2020 August RA billing + 4th of 4 installments of deferred
    consolidated RA


    The PPD shall apply to both the current power bill including deferred GRAM and ICERA and ACRM true-up adjustments, and deferred power bill and DAA/ACRM amounts, falling due on 15 March to 30 April 2020, if these are remitted to PSALM in full on the due dates indicated above for PPD. Those who opt to pay the deferred power bill and DAA/ACRM amounts in four (4) equal installments will no longer be entitled to avail of the PPD.

    Billings with due dates not falling within the ECQ period of up to 30 April 2020 and not covered by the DOE Advisories and ERC Advisories shall thus follow the original due dates, and the failure to pay on or before such original due dates shall incur interests and penalties pursuant to existing agreements and in accordance with the credit and collection policies of PSALM. This is based not just on the ERC and DOE Advisories but also on the relevant provisions of the contracts with PSALM including the force majeure provisions.

  2. For the Universal Charges (UC) collected by Collecting Entities (CEs) in the entire country covering Missionary Electrification (ME), Environmental Charge for Watershed Rehabilitation and Management (EC) and Stranded Debts (SD), to be remitted to PSALM as the UC Administrator, the CEs are expected to implement the same grace period and payment scheme, as provided in item 1 above, to all electricity end-users in compliance with the ERC and DOE Advisories re ECQ Extension. In this regard, PSALM shall likewise grant the same grace period to CEs, without imposing any interest and penalties, on UC remittances falling due within the ECQ period. In turn, PSALM’s disbursements thereof to UC beneficiaries falling due within the ECQ period shall also be following the same grace period or number of days as given to CEs. The UC remittances to PSALM and PSALM’s disbursements of the UC remittances due during the ECQ Period are provided in Tables 2 and 3 below:

    TABLE 2: Collecting Entities’ UC Remittances to PSALM Due Within the ECQ Period & their Extended Due Dates
    UC Collection Period Original Due Date Due Date/s in view of the Extended ECQ Remittances Due to PSALM
    February 16 March 2020 15 May, 15 June, 15 July & 15 August 2020 Deferred; payable in 4 installments
    March 15 April 2020 15 May, 15 June, 15 July & 15 August 2020 Deferred; payable in 4 installments
    April 15 May 2020 15 May 2020 Current + 1st of 4 installments of deferred amount
    May 15 June 2020 15 June 2020 Current + 2nd of 4 installments of deferred amount
    June 15 July 2020 15 July 2020 Current + 3rd of 4 installments of deferred amount
    July 15 August 2020 15 August 2020 Current + 4th of 4 installments of deferred amount

    TABLE 3: PSALM’s Disbursements to UC Beneficiaries for UC Due Within the ECQ Period
    UC Collection Period Original Due Date Due Date/s in view of the Extended ECQ Disbursements Due to UC Beneficiaries
    February 20 March 2020 20 May, 22 June, 20 July & 20 August 2020 Deferred; payable in 4 installments
    March 20 April 2020 20 May, 22 June, 20 July & 20 August 2020 Deferred; payable in 4 installments
    April 20 May 2020 20 May 2020 Current + 1st of 4 installments of deferred amount
    May 22 June 2020 22 June 2020 Current + 2nd of 4 installments of deferred amount
    June 20 July 2020 20 July 2020 Current + 3rd of 4 installments of deferred amount
    July 20 August 2020 20 August 2020 Current + 4th of 4 installments of deferred amount

    UC remittances by CEs to PSALM and UC disbursements by PSALM to beneficiaries that are not falling due within the ECQ period shall follow the usual due dates. The CEs’ failure to pay on or before such due dates shall incur interests and penalties.

  3. Anent the PSALM Advisory to its Stakeholders Re Submission of 2019 Universal Charge (UC) Annual Reports and March 2020 Billing, Collection/Remittance Reports and Special Bank Receipts (SBRs) dated 02 April 2020, PSALM also hereby extends the deadlines for the submission of the following UC reports:

    TABLE 4: Extended Deadlines for the Submission of UC Reports
    Period UC Reports Original Due Date Extended Due Date
    CY 2019 Annual Audit Report 30 April 2020 01 June 2020
    February 2020 Billing Report 20 March 2020 15 May 2020
    Collection/Remittance and SBRs Reports 16 March 2020
    March 2020 Billing Reports 20 April 2020 15 May 2020
    Collection/Remittance and SBRs Reports 15 April 2020
    April 2020 Billing Reports 20 May 2020 25 May 2020
    Collection/Remittance and SBRs Reports 15 May 2020

    Deadlines for the submission of reports to PSALM that are not falling due within the ECQ period shall follow the usual due dates, and failure to submit on or before such due dates shall incur interests and penalties.

  4. Due dates for the payment of Independent Power Producer Administrators (IPPAs) in the entire country to PSALM that fell due after the issuance of the PSALM Advisory of 26 March 2020 and up to 14 April 2020, for both capacity and energy payments, were extended by thirty (30) days counted from 14 April 2020, or up to 14 May 2020, without imposing any interest and penalties. In light of the ERC and DOE Advisories re Extended ECQ which clearly and categorically covered both the Independent Power Producers (IPPs) and the IPPAs, PSALM shall grant to the IPPAs the same grace period and extend the same payment scheme, as provided in items 1 and 2 above, subject to the confirmation from PSALM’s IPPs and fuel suppliers on their adoption of the said grace period and payment scheme in favor of PSALM. This is to ensure that PSALM will have sufficient funding source to pay the IPP and fuel supply obligations when they fall due.
  5. Consistent with the ERC and DOE Advisories intending to lessen the impact of the grace period given to electricity power industry stakehoders and to help manage the cashflow in the energy supply chain to ensure the continuous supply of electricity, PSALM strongly reiterates its requirement to power customers, CEs, NGCP and IPPAs to immediately remit to PSALM any proportionate amounts that they may have already collected from their own customers, if any, without awaiting the extended due dates provided in Items 1 and 2 above. Customers who have the ability to pay are encouraged to continue to timely settle their bills with PSALM within the original due dates.

Matters contained in the PSALM Advisories of 26 March 2020 and 02 April 2020 that are not amended by, or inconsistent with, this Advisory shall remain valid.

PSALM will issue the necessary supplemental or amendatory advisories should there be further updates or amendment to the Advisories issued by the ERC and DOE, or if there are instructions or decisions that will be issued by the PSALM Board of Directors relative to the Advisories of PSALM.

Signed this 17 April 2020 in Quezon City, Philippines.


NOTICE TO ALL STAKEHOLDERS

23 March 2020


Pursuant to Memorandum Circular on Community Quarantine over the Entire Luzon and Further Guidelines of the Management of the Corona Virus Disease 2019 (COVID 19) issued by the Office of the President on 16 March 2020, please be advised that PSALM’s Office will be CLOSED to clients, visitors and stakeholders from 23 March to 13 April 2020 or until such time that the Enhanced Community Quarantine has been lifted.

All official communications and requests should be coursed through infos@psalm.gov.ph or via the respective email addresses of responsible personnel during the quarantine period. They will be attended to promptly by the PSALM personnel who are following a work from home arrangement. While PSALM still has a lean skeletal workforce working in the PSALM office, they will not be receiving communications and requests in order to avoid exposure from COVID 19.

We will notify everyone should there be any changes to this current arrangement.

PSALM ADVISORY TO ITS STAKEHOLDERS RE BILLING

17 April 2020


The Power Sector Assets and Liabilities Management Corporation (“PSALM”) earlier issued its Advisories to Stakeholders dated 26 March and 02 April 2020 (“PSALM Advisories”) pursuant to the Government’s declaration of a State of Calamity throughout the Philippines in Proclamation No. 929 dated 16 March 2020, the advisories of the Energy Regulatory Commission (“ERC”) dated 17 and 26 March 2020, and the advisories of the Department of Energy (“DOE”) dated 18 and 23 March 2020 (“ERC and DOE Advisories”).

In view of the extension of the enhanced community quarantine (“ECQ”) in Luzon until 30 April 2020 due to the Coronavirus Disease 2019 (“COVID-19”), the ERC and the DOE issued their respective advisories dated 15 and 16 April 2020 (“ERC and DOE Advisories re ECQ Extension”) to provide guidance to all electric power industry stakeholders.

Accordingly, to implement the ERC and DOE Advisories re ECQ Extension, PSALM hereby issues the following amendments to the earlier-issued PSALM Advisories:

  1. For the payment of all fees to PSALM on power billings and ancillary services in the entire country falling due during the original and extended ECQ period covering 15 March 2020 to 30 April 2020, PSALM shall grant a grace period to concerned entities without imposing any interest and penalties, as indicated below. For this purpose, the accumulated amount of payments to PSALM falling due within the ECQ shall be amortized in four (4) equal monthly installments, payable in the four (4) succeeding billing months following the end of the ECQ. The installments shall be reflected as a separate item in the PSALM billings due on those succeeding months.

    This Advisory shall cover the payments due from all PSALM customers, namely distribution utilities (DUs), industries, ecozones and government entities on regular power bills (PB), Deferred Accounting Adjustments (DAA) on GRAM and ICERA, ACRM True-up Adjustments, remittances entitled to prompt payment discount (PPD), Restructured Accounts (RA) on power, and Ancillary Services (AS) payments due from the National Grid Corporation of the Philippines (NGCP).

    The Table below provides the details of PSALM’s power and ancillary services billings within the ECQ period and their corresponding extended due dates:

    TABLE 1: PSALM’s Billings on Power and Ancillary Services Due Within the ECQ Period & their Extended Due Dates
    Type of Bill Billing Period Original Due Date Due Date/s
    in view of the
    Extended ECQ
    Payments Due
    FEBRUARY BILLINGS
    RA Monthly Amortization February 2020 28 February 2020 N.A. N.A.
    DAA/ACRM only – with PPD February 2020 10 March 2020 N.A. N.A.
    Regular PB – PPD (Luzon and Visayas) 26 Jan. to 25 Feb. 2020 13 March 2020 N.A. N.A.
    Regular PB - PPD (Mindanao) 26 Jan. to 25 Feb. 2020 18 March 2020 N.A. N.A.
    Regular PB – Non PPD 26 Jan. to 25 Feb. 2020 25 March 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred PB consolidated with PB due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only – w/o PPD February 2020 25 March 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred DAA/ACRM consolidated with DAA/ACRM due within ECQ, payable in 4 equal monthly installments
    NGCP Ancillary Services (AS) 26 Jan. to 25 Feb. 2020 31 March 2020 29 May, 30 June, 31 July, 31 August 2020 Deferred AS consolidated with AS due within ECQ, payable in 4 equal monthly installments
    MARCH BILLINGS
    RA Monthly Amortization March 2020 31 March 2020 29 May, 30 June, 31 July, 31 August 2020 Deferred RA consolidated with RA due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only - with PPD March 2020 10 April 2020 15 May 2020 Deferred DAA/ACRM to be paid in full
    Regular PB – PPD 26 Feb. to 25 March 2020 15 April 2020 15 May 2020 Deferred PB to be paid in full
    Regular PB – Non PPD 26 Feb. to 25 March 2020 24 April 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred PB consolidated with PB due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only – w/o PPD March 2020 24 April 2020 28 May, 25 June, 24 July, 25 August 2020 Deferred DAA/ACRM consolidated with DAA/ACRM due within ECQ, payable in 4 equal monthly installments
    NGCP AS 26 Feb. to 25 March 2020 30 April 2020 29 May, 30 June, 31 July, 31 August 2020 Deferred AS consolidated with AS due within ECQ, payable in 4 equal monthly installments
    APRIL BILLINGS
    RA Monthly Amortization April 2020 30 April 2020 29 May 2020, 30 June, 31 July, 31 August 2020 Deferred RA consolidated with RA due within ECQ, payable in 4 equal monthly installments
    DAA/ACRM only - with PPD April 2020 8 May 2020 25 May 2020 April DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 March to 25 April 2020 15 May 2020 25 May 2020 April PB to be paid in full
    Regular PB – Non PPD 26 March to 25 April 2020 25 May 2020 28 May 2020 April PB + 1st of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD April 2020 25 May 2020 28 May 2020 April DAA/ACRM billing + 1st of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 March to 25 April 2020 29 May 2020 29 May 2020 April AS billing + 1st of 4 installments of deferred consolidated AS billings
    MAY BILLINGS
    RA Monthly Amortization May 2020 29 May 2020 29 May 2020 May RA billing + 1st of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD May 2020 10 June 2020 10 June 2020 May DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 April to 25 May 2020 15 June 2020 15 June 2020 May PB to be paid in full
    Regular PB – Non PPD 26 April to 25 May 2020 25 June 2020 25 June 2020 May PB + 2nd of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD May 2020 25 June 2020 25 June 2020 May DAA/ACRM billing + 2nd of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 April to 25 May 2020 30 June 2020 30 June 2020 May AS billing + 2nd of 4 installments of deferred consolidated AS billings
    JUNE BILLINGS
    RA Monthly Amortization June 2020 30 June 2020 30 June 2020 June RA billing + 2nd of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD June 2020 10 July 2020 10 July 2020 June DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 May to 25 June 2020 15 July 2020 15 July 2020 June PB to be paid in full
    Regular PB – Non PPD 26 May to 25 June 2020 24 July 2020 24 July 2020 June PB + 3rd of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD June 2020 24 July 2020 24 July 2020 June DAA/ACRM billing + 3rd of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 May to 25 June 2020 31 July 2020 31 July 2020 June AS billing + 3rd of 4 installments of deferred consolidated AS billings
    JULY BILLINGS
    RA Monthly Amortization July 2020 31 July 2020 31 July 2020 July RA billing + 3rd of 4 installments of deferred consolidated RA
    DAA/ACRM only - with PPD July 2020 10 August 2020 10 August 2020 July DAA/ACRM billing to be paid in full
    Regular PB – PPD 26 June to 25 July 2020 14 August 2020 14 August 2020 July PB to be paid in full
    Regular PB – Non PPD 26 June to 25 July 2020 25 August 2020 25 August 2020 July PB + 4th of 4 installments of deferred consolidated PBs
    DAA/ACRM only – w/o PPD July 2020 25 August 2020 25 August 2020 July DAA/ACRM billing + 4th of 4 installments of deferred consolidated DAA/ACRM billings
    NGCP AS 26 June to 25 July 2020 31 August 2020 31 August 2020 July AS billing + 4th of 4 installments of deferred consolidated AS billings
    AUGUST BILLINGS
    RA Monthly Amortization August 2020 31 August 2020 31 August 2020 August RA billing + 4th of 4 installments of deferred
    consolidated RA


    The PPD shall apply to both the current power bill including deferred GRAM and ICERA and ACRM true-up adjustments, and deferred power bill and DAA/ACRM amounts, falling due on 15 March to 30 April 2020, if these are remitted to PSALM in full on the due dates indicated above for PPD. Those who opt to pay the deferred power bill and DAA/ACRM amounts in four (4) equal installments will no longer be entitled to avail of the PPD.

    Billings with due dates not falling within the ECQ period of up to 30 April 2020 and not covered by the DOE Advisories and ERC Advisories shall thus follow the original due dates, and the failure to pay on or before such original due dates shall incur interests and penalties pursuant to existing agreements and in accordance with the credit and collection policies of PSALM. This is based not just on the ERC and DOE Advisories but also on the relevant provisions of the contracts with PSALM including the force majeure provisions.

  2. For the Universal Charges (UC) collected by Collecting Entities (CEs) in the entire country covering Missionary Electrification (ME), Environmental Charge for Watershed Rehabilitation and Management (EC) and Stranded Debts (SD), to be remitted to PSALM as the UC Administrator, the CEs are expected to implement the same grace period and payment scheme, as provided in item 1 above, to all electricity end-users in compliance with the ERC and DOE Advisories re ECQ Extension. In this regard, PSALM shall likewise grant the same grace period to CEs, without imposing any interest and penalties, on UC remittances falling due within the ECQ period. In turn, PSALM’s disbursements thereof to UC beneficiaries falling due within the ECQ period shall also be following the same grace period or number of days as given to CEs. The UC remittances to PSALM and PSALM’s disbursements of the UC remittances due during the ECQ Period are provided in Tables 2 and 3 below:

    TABLE 2: Collecting Entities’ UC Remittances to PSALM Due Within the ECQ Period & their Extended Due Dates
    UC Collection Period Original Due Date Due Date/s in view of the Extended ECQ Remittances Due to PSALM
    February 16 March 2020 15 May, 15 June, 15 July & 15 August 2020 Deferred; payable in 4 installments
    March 15 April 2020 15 May, 15 June, 15 July & 15 August 2020 Deferred; payable in 4 installments
    April 15 May 2020 15 May 2020 Current + 1st of 4 installments of deferred amount
    May 15 June 2020 15 June 2020 Current + 2nd of 4 installments of deferred amount
    June 15 July 2020 15 July 2020 Current + 3rd of 4 installments of deferred amount
    July 15 August 2020 15 August 2020 Current + 4th of 4 installments of deferred amount

    TABLE 3: PSALM’s Disbursements to UC Beneficiaries for UC Due Within the ECQ Period
    UC Collection Period Original Due Date Due Date/s in view of the Extended ECQ Disbursements Due to UC Beneficiaries
    February 20 March 2020 20 May, 22 June, 20 July & 20 August 2020 Deferred; payable in 4 installments
    March 20 April 2020 20 May, 22 June, 20 July & 20 August 2020 Deferred; payable in 4 installments
    April 20 May 2020 20 May 2020 Current + 1st of 4 installments of deferred amount
    May 22 June 2020 22 June 2020 Current + 2nd of 4 installments of deferred amount
    June 20 July 2020 20 July 2020 Current + 3rd of 4 installments of deferred amount
    July 20 August 2020 20 August 2020 Current + 4th of 4 installments of deferred amount

    UC remittances by CEs to PSALM and UC disbursements by PSALM to beneficiaries that are not falling due within the ECQ period shall follow the usual due dates. The CEs’ failure to pay on or before such due dates shall incur interests and penalties.

  3. Anent the PSALM Advisory to its Stakeholders Re Submission of 2019 Universal Charge (UC) Annual Reports and March 2020 Billing, Collection/Remittance Reports and Special Bank Receipts (SBRs) dated 02 April 2020, PSALM also hereby extends the deadlines for the submission of the following UC reports:

    TABLE 4: Extended Deadlines for the Submission of UC Reports
    Period UC Reports Original Due Date Extended Due Date
    CY 2019 Annual Audit Report 30 April 2020 01 June 2020
    February 2020 Billing Report 20 March 2020 15 May 2020
    Collection/Remittance and SBRs Reports 16 March 2020
    March 2020 Billing Reports 20 April 2020 15 May 2020
    Collection/Remittance and SBRs Reports 15 April 2020
    April 2020 Billing Reports 20 May 2020 25 May 2020
    Collection/Remittance and SBRs Reports 15 May 2020

    Deadlines for the submission of reports to PSALM that are not falling due within the ECQ period shall follow the usual due dates, and failure to submit on or before such due dates shall incur interests and penalties.

  4. Due dates for the payment of Independent Power Producer Administrators (IPPAs) in the entire country to PSALM that fell due after the issuance of the PSALM Advisory of 26 March 2020 and up to 14 April 2020, for both capacity and energy payments, were extended by thirty (30) days counted from 14 April 2020, or up to 14 May 2020, without imposing any interest and penalties. In light of the ERC and DOE Advisories re Extended ECQ which clearly and categorically covered both the Independent Power Producers (IPPs) and the IPPAs, PSALM shall grant to the IPPAs the same grace period and extend the same payment scheme, as provided in items 1 and 2 above, subject to the confirmation from PSALM’s IPPs and fuel suppliers on their adoption of the said grace period and payment scheme in favor of PSALM. This is to ensure that PSALM will have sufficient funding source to pay the IPP and fuel supply obligations when they fall due.
  5. Consistent with the ERC and DOE Advisories intending to lessen the impact of the grace period given to electricity power industry stakehoders and to help manage the cashflow in the energy supply chain to ensure the continuous supply of electricity, PSALM strongly reiterates its requirement to power customers, CEs, NGCP and IPPAs to immediately remit to PSALM any proportionate amounts that they may have already collected from their own customers, if any, without awaiting the extended due dates provided in Items 1 and 2 above. Customers who have the ability to pay are encouraged to continue to timely settle their bills with PSALM within the original due dates.

Matters contained in the PSALM Advisories of 26 March 2020 and 02 April 2020 that are not amended by, or inconsistent with, this Advisory shall remain valid.

PSALM will issue the necessary supplemental or amendatory advisories should there be further updates or amendment to the Advisories issued by the ERC and DOE, or if there are instructions or decisions that will be issued by the PSALM Board of Directors relative to the Advisories of PSALM.

Signed this 17 April 2020 in Quezon City, Philippines.


PSALM ADVISORY TO ITS STAKEHOLDERS RE SUBMISSION OF 2019 UNIVERSAL CHARGE (UC) ANNUAL REPORTS AND MARCH 2020 BILLING, COLLECTION / REMITTANCE REPORTS AND SPECIAL BANK RECEIPTS (SBRs)

02 April 2020


In line with the Government’s declaration of a State of Calamity throughout the Philippines due to the Coronavirus Disease 2019 (“COVID-19”) in Proclamation No. 929 dated 16 March 2020, and the concomitant directive on enhanced community quarantine in Luzon to contain the spread of the COVID-19, the Power Sector Assets and Liabilities Management Corporation (“PSALM”) recognizes the challenges in the mobilization and business operations of its stakeholders. Aware that the COVID-19 pandemic is causing severe disruption in the normal business operations of UC Collecting Entities (CEs), PSALM issues this Advisory to properly guide all UC CEs in the submission to PSALM of certain required reports. This is in addition to the policies contained in PSALM’s 26 March 2020 Advisory.

PSALM hereby extends the deadline for submission of the Annual Audit Reports on UC Billings, Collections and Remittances for CY 2019 from 30 April 2020 to 1 June 2020. No further request for extension shall be entertained unless otherwise instructed by the Department of Energy (DOE), the Energy Regulatory Commission (ERC) or any other competent authority, for which a supplemental or amendatory advisory shall be subsequently issued.

In view of the enhanced community quarantine, the Billing, Collection/Remittance Reports as well as the Special Bank Receipts (SBRs) covering the month of February 2020 (originally due no later than 16 March 2020) shall be transmitted to PSALM by the CEs not later than Wednesday, 8 April 2020 in the form of scanned signed copies sent through email to ucad@psalm.gov.ph and also by uploading them to the Universal Levy Administration System (ULAS) in PSALM’s website www.psalm.gov.ph. The original signed reports shall be submitted to PSALM not later than 4 May 2020

The DOE, in its Advisory dated 18 March 2020, extended by 30 days from 14 April 2020, or by 14 May 2020, the period to pay PSALM the UC falling due on 15 March 2020 to 14 April 2020. Consistently, PSALM hereby extends the deadline for the submission to PSALM of the March Billing Report (originally due on 20 April 2020) and the March Collection/Remittance Reports as well as the SBRs (originally due on 15 April 2020) to 14 May 2020. The submission by the CEs to PSALM of said reports and SBRs shall be in the usual manner.

Should the DOE, ERC or the PSALM Board of Directors issue directives that may impact on this Advisory, then PSALM shall subsequently issue the corresponding advisories.

Signed this 2 April 2020 in Quezon City, Philippines.


PSALM ADVISORY TO ITS STAKEHOLDERS RE BILLINGS

26 March 2020


In line with the Government’s declaration of a State of Calamity throughout the Philippines due to the Coronavirus Disease 2019 (“COVID-19”) in Proclamation No. 929 dated 16 March 2020, and the concomitant directive on enhanced community quarantine in Luzon to contain the spread of the COVID-19, the Power Sector Assets and Liabilities Management Corporation (“PSALM”) will strictly comply with the advisories of the Energy Regulatory Commission dated 17 and 26 March 2020 (“ERC Advisories”) and the advisories of the Department of Energy dated 18 March and 23 March 2020 (“DOE Advisories”). PSALM recognizes that the COVID-19 pandemic is causing long term adverse effects on people’s livelihood and severe disruption of economic activities. PSALM aims to help alleviate the difficulties suffered by the electricity consumers to the extent that PSALM can legally do so. PSALM hereby issues the following policies that will implement the ERC Advisories, the DOE Advisories, the existing contractual arrangements with PSALM, and PSALM’s credit and collection policies:

  1. For distribution utilities1 (DUs) in the entire country, PSALM shall grant an extension of thirty (30) days counted from 14 April 2020, without imposing any interest and penalties, for PSALM’s billings falling due on 15 March 2020 to 14 April 2020. This covers also the payments of Deferred Accounting Adjustments on GRAM and ICERA. However, billings with due dates not falling within the said period of 15 March 2020 to 14 April 2020 shall follow the original due dates, and failure to pay on or before such due dates shall incur interests and penalties pursuant to existing agreements and in accordance with the credit and collection policies of PSALM. This is based not just on the ERC Advisory and DOE Advisories but also on the relevant provisions of the contracts with PSALM including the force majeure provisions.
  2. For the DUs, consistent with the ERC Advisories whereby all DUs are reminded of their obligation to procure their power requirements in the least cost manner, to consider all attendant circumstances, including the approved contract's minimum contracted capacity and fixed costs, PSALM shall not allow suspension or lowering of the minimum energy off-take or the Minimum Charges because the contracts with PSALM categorically provide for the effects of a force majeure. While force majeure justifies extension of the period to pay, the contracts with PSALM do not indicate that suspension or lowering of the minimum energy off-take or of the Minimum Charges based on the Contract Energy per billing period using the basic energy charge is the consequence of force majeure. The contracts require that the force majeure event must render it impossible for a party to fulfill its obligation, such as when its operations are totally paralyzed to receive the supply of energy, and not just a mere incapacity to consume the Contract Energy or inability to meet the Minimum Charges or off-take.
  3. For the DUs that want to avail of the prompt payment discount, PSALM shall extend the prompt payment discount for PSALM’s billings falling due on 15 March 2020 to 14 April 2020 if the payment is remitted to PSALM not later than 29 April 2020.
  4. For the Independent Power Producer Administrators (IPPAs) in the entire country, PSALM shall grant an extension of thirty (30) days counted from 14 April 2020, without imposing any interest and penalties, for payments due to PSALM pursuant to IPPAs Administration Agreements, for both capacity and energy payments, provided that the payments fall due on 15 March 2020 to 14 April 2020, and provided further that PSALM was given by its counterpart Independent Power Producers (IPPs) with a similar extension period of 30 days from 14 April 2020 for the remittance of PSALM’s payments due to such IPPs. This is to ensure that PSALM has sufficient funding source to pay the IPP obligations when they fall due. If the IPPs refuse to give an extension to PSALM, then PSALM is constrained not to give an extension to the IPPAs. However, payments due to PSALM pursuant to IPPAs Administration Agreements that are not falling within said period of 15 March 2020 to 14 April 2020 shall follow the usual due date, and failure to pay on or before such due date shall incur interests and penalties.
  5. For the Universal Charge (UC) collecting entities (CEs), PSALM shall grant an extension of thirty (30) days counted from 14 April 2020, without imposing any interest and penalties, for the UC remittances to PSALM that fall due on 15 March 2020 to 14 April 2020, covering UC for Missionary Electrification (ME), Environmental Charge for Watershed Rehabilitation and Management (EC) and Stranded Debts (SD). In turn, the period for PSALM to disburse the remitted UC to the UC beneficiaries shall also be extended by the same number of days of extension given to the CEs to remit to PSALM per the DOE Advisories. However, UC remittances due to PSALM that are not falling within said period of 15 March 2020 to 14 April 2020 shall follow the usual due date, and failure to pay on or before such due date shall incur interests and penalties.
  6. Consistent with the DOE advisories, any dispute that will arise from 15 March to 14 April 2020 regarding the settlement of any of the accounts payable to PSALM listed above should also be put on hold while the enhanced community quarantine is in place.
  7. For PSALM’s fuel suppliers, PSALM shall act consistently with the DOE Advisories that extended for a period of thirty (30) days from 14 April 2020 the deadline for payments to fuel/resource suppliers of generating facilities throughout the country. This extension shall apply to payments falling due on 15 March 2020 to 14 April 2020.
  8. For the DUs and CEs, PSALM shall require the DUs and CEs to remit to PSALM any proportionate amount that the DUs and CEs have already collected within the original deadline, if any, without awaiting the end of the extended period. This is consistent with the DOE Advisories intending to lessen the impact to generating companies of the 30-day extension given to DUs and CEs.

  9. 1 Distribution Utilities refers to any electric cooperative, private corporation, government-owned utility or existing local government unit which has an exclusive franchise to operate a distribution system in accordance with Republic Act No. 9136 “Electric Power Industry Reform Act of 2001”

Should there be subsequent updates or amendment to the Advisories issued by the ERC and DOE, or if there are instructions or decisions that will be issued by the PSALM Board of Directors relative to this Advisory of PSALM, the necessary supplemental or amendatory advisories will thus be issued.

Signed this 26 March 2020 in Quezon City, Philippines


NOTICE TO ALL STAKEHOLDERS

23 March 2020


Pursuant to Memorandum Circular on Community Quarantine over the Entire Luzon and Further Guidelines of the Management of the Corona Virus Disease 2019 (COVID 19) issued by the Office of the President on 16 March 2020, please be advised that PSALM’s Office will be CLOSED to clients, visitors and stakeholders from 23 March to 13 April 2020 or until such time that the Enhanced Community Quarantine has been lifted.

All official communications and requests should be coursed through infos@psalm.gov.ph or via the respective email addresses of responsible personnel during the quarantine period. They will be attended to promptly by the PSALM personnel who are following a work from home arrangement. While PSALM still has a lean skeletal workforce working in the PSALM office, they will not be receiving communications and requests in order to avoid exposure from COVID 19.

We will notify everyone should there be any changes to this current arrangement.


NOTICE TO ALL STAKEHOLDERS

13 March 2020


PSALM, a government-owned and controlled corporation that plays a crucial role in the energy sector, is constrained to continue with its functions amidst the COVID-19 threat. To comply with the directive of President Rodrigo Roa Duterte raising the Code Alert System for the COVID- 19 to Code Red Sublevel 2, and to protect the PSALM personnel from exposure to COVID-19, PSALM has institutionalized office policies adopting stringent social distancing measures starting today until 14 April 2020.

In order to continue serving our valued customers and the public, there will at all times be a skeletal workforce in PSALM's office premises that will ensure uninterrupted operations, while a work-from-home arrangement has been implemented for the majority of its personnel. With these arrangements in place, PSALM ensures the delivery of its critical, urgent and necessary functions including trading of power plant capacity/energy and performance of other ETD functions, debt servicing and IPP Payments, billing and collection of Power Accounts and IPPA Accounts, UC collection and disbursements, preparations for privatization activities, and urgent procurement activities. The PSALM personnel working from home will fully complement and support the activities of the skeletal workforce.

PSALM has also implemented precautionary protocols in its workplace such as regular office disinfection, temperature checking, wearing of facemasks and constant washing of hands and use of hand sanitizers. Part of said precautionary protocols is the allocation of service vehicles for its skeletal workforce to transport them to and from the PSALM office.

All official communications and requests should be coursed through infos@psalm.gov.ph or via the respective email addresses of its personnel. We will notify everyone should there be any changes to this current arrangement.

Be assured that PSALM is committed to perform its functions in the midst of this unprecedented health scare. And as PSALM is doing everything possible to soldier on with its mandates, PSALM sincerely asks all its stakeholders for prayers, patience and understanding.

13 March 2020, Quezon City, Philippines.