The Power Sector Assets and Liabilities Management (PSALM) Corporation assembled its Luzon customers to a forum last 05 December 2017 at B Hotel in Quezon City to apprise them on the nature and mechanism of its rate adjustments impending collection this January.
The forum also aimed at addressing queries on the amount to be recovered, timeline of collection, PSALM's credit and collection policy and other matters such as pertinent Bureau of Internal Revenue forms required for proper billing settlement.
Participated in by various electric cooperatives, private utilities and other industries, and by the Department of Energy, the forum was in compliance with the order of the Energy Regulatory Commission directing PSALM to inform customers of the implementation of the 10th – 17th GRAM (Generation Rate Adjustment Mechanism), 15th – 16th ICERA (Incremental Currency Exchange Rate Adjustment) and 1st – 5th ACRM (Automatic Cost Recovery Mechanism) True-Up Adjustments which were deferred by the ERC for collection to January 2018 billing.
PSALM disclosed that rate adjustments are necessary to reflect the actual power costs that PSALM prudently incurred to produce electricity. Rate adjustments arise from the difference between the actual allowable costs that PSALM incurred for a certain period and the actual revenues it generated. These variables – fuel, foreign currency exchange rates, purchased power costs – are accounted for to come up with the right pricing.Back