Lighting the countryside: PSALM continues to significantly contribute to government efforts to provide a steady and reliable supply of electricity in the country's far-flung areas.
Communities in these areas get much-needed electric power through PSALM’s prudent management and disposal of the collections from the Universal Charge (UC) for Missionary Electrification (UC-ME).
A non-bypassable charge mandated under Section 34 of the EPIRA, the UC is imposed on electricity consumers for the following purposes:
- Missionary electrification;
- Payment for stranded debts and stranded contract costs;
- An environmental charge for watershed rehabilitation and management;
- Equalization of taxes and royalties applied to indigenous or renewable sources of energy vis-à-vis imported energy fuels; and
- A charge to account for all forms of cross-subsidies.
At present, only the UC-ME and the UC for Environment and Watershed Rehabilitation and Management (UC-EWRM) amounting to PhP0.0025 per kilowatt-hour are imposed on and are being collected from electricity consumers.
The UC is collected monthly by the National Grid Corporation of the Philippines and the distribution utilities based on the approval of the Energy Regulatory Commission (ERC). The collections are remitted to PSALM every 15th of the following month.
I. Universal Charge (UC) Administration
A. Universal Charge Remittances to PSALM
As of 30 June 2020, remittances of collecting entities (CEs) to PSALM amounted to PHP196.142 billion. Below are the details of UC remittances received by PSALM:
Universal Charge Remittances, Interests and Disbursements
As of 30 June 2020 (In PHP Billion)
Particulars Remittances to PSALM Special Trust Funds: Missionary Electrification (ME) - NPC SPUG 104.790 ME - Renewable Energy Developer Cash Incentive (REDCI) 0.793 Environmental Charge (EC) 2.525 Stranded Contract Cost (SCC) 80.811 Stranded Debts 7.223 Total 196.142
B. Remittances for January to June 2020
For the period January to June 2020, PHP7.847 billion in UC remittances was received by PSALM, broken down as follows:
For the Period January to June 2020 (In PHP Billion)
Month ME (NPC-SPUG) ME (REDCI) EC SCC SD Total January 1.090 0.012 0.018 0.377 0.302 1.799 February 1.156 0.013 0.019 0.409 0.319 1.916 March 1.014 0.011 0.016 0.275 0.280 1.596 April 0.685 0.008 0.011 0.020 0.189 0.913 May 0.404 0.004 0.007 0.009 0.112 0.536 June 0.825 0.009 0.013 0.011 0.229 1.087 Total 5.174 0.057 0.084 1.101 1.431 7.847
*Differences from previous submission are due to rounding off
C. Update on UC Imposition on Self-Generation Facilities (SGFs)
II. ERC - Approved UC Rates
Updates on ERC-Approved UC Rates
The table below shows the ERC-approved UC rates being implemented as of 30 June 2020:
Type PhP/kWh ME (Missionary Electrification) 0.1544 ME - REDCI (Renewable Energy Developers Cash Incentive) 0.0017 EC (Environmental Charge) 0.0000 1/ SCC (Stranded Contract Cost) 0.0000 2/ SD (Stranded Debts) 0.0428 Total UC (Collected from all electricity end-users) 0.1989
1/ Collection of UC-EC of PhP0.0025/kWh from all electricity end-users by all collecting entities, including NGCP, has been suspended effective 22 May 2020, until further notice from the ERC
2/ Collection of UC-SCC of PhP0.0543/kWh from all electricity end-users by all collecting entities has ceased effective February 2020 in view of full recovery of ERC-approved SCC amount of PhP5.117 billion