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.
V. Universal Charge (UC) Administration
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A. Universal Charge Remittances, Interests & Disbursements
As of 31 July 2024, remittances of collecting entities (CEs) to PSALM amounted to PHP281.398 billion, while interest earnings from deposits and placements of UC funds amounted to PHP0.383 billion. On the other hand, UC fund disbursements amounted to PHP279.931 billion. Below are the details of UC remittances, interests, and disbursements:
Universal Charge Remittances, Interests and Disbursements
As of 31 July 2024 (In PHP Billion)Particulars Remittances 1/ Interest Disbursements 2/ Special Trust Funds: Missionary Electrification (ME) - NPC SPUG 172.881 0.046 172.697 ME - Renewable Energy Developer Cash Incentive (REDCI) 1.505 0.043 1.401 Environmental Charge (EC) 3/ 2.566 0.197 1.985 Stranded Contract Cost (SCC)4/ 80.990 0.095 80.393 Stranded Debts 23.455 0.002 23.453 Total 281.398 0.383 279.931 Notes:
1/ Based on the Summary of Remittances, balance includes CEs’ remittances during the period 16-30 July 2024 which were deposited to the Main Trust Account (MTA) but will be transferred to each STF not later than 20 August 2024, pursuant to Section 7(c) of the ERC -approved Guidelines and Procedures Governing Remittances and Disbursements of the Universal Charge (UC Guidelines as amended.
2/ ME-NPC SPUG includes disbursement to ORMECO, Inc. in the total amount of PHP40,442,954.47, for the recovery of fuel costs chargeable against the UC-ME fund, pursuant to ERC Orders dated 16 June 2014 and 24 September 2014 covering ERC case No. 2013-191RC.
3/STF-MENPC SPUG total UC fund balance amounted to PhP229,62,394.44 and STF SD total UC fund balance amounted to PhP3,45,86.77
The following disbursements/fund transfers were made from the respective UC Special Trust Fund (STF):
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UC-ME (NPC-SPUG) and EC
- PHP172.697 billion and PHP1.985 billion were disbursed to NPC, chargeable against the UC-ME and EC fund, respectively, in accordance with the provisions of the EPIRA and the Energy Regulatory Commission (ERC) decisions/orders.
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UC-SCC and UC-SD
- PHP80.393 billion and PHP23.086 billion were transferred from the UC-SCC and UC-SD STF accounts to PSALM’s UC-SCC and UC-SD Special Fund Accounts (SFA), following the PSALM Board-approved Guidelines and Procedures on Disbursement and Utilization of UC-SCC and UC-SD of NPC.
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ME-REDCI
- Cash Incentives totaling PHP1.401 billion was paid to the following renewable energy (RE) developers, in accordance with the ERC-approved Rules to Govern the Availment and Disbursement of Cash Incentive to RE Developers Operating in Missionary Areas:
RE Developers Disbursed Amount(PHP) ORMECO for the 2.1 MW Linao Cawayan Mini-Hydro Power Plant (LCMHPP) 0.161 Ormin Power Incorporated 0.468 Philippine Hybrid Energy Systems (PHESI) 0.379 Romblon Electric Cooperative, Inc. (ROMELCO) for the 900 kW Cantingas Mini Hydro Power Plant Corporation (CHPC) 0.112 Sunwest Water and Electric Co. (SUWECO) for the 1.5 MW Hitoma 1 & 2.1 MW Solong Hydroelectric Power Plants 0.230 STEC 0.019 TOTAL 1.401
- No Updates
B. Update on UC Imposition on Self-Generation Facilities (SGFs)s
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VI. Effective Rates
A. Updates on ERC-Approved UC Rates
The table below shows the ERC-approved UC rates being implemented as of 30 June 2024:
| ERC-Approved UC Rates | |
|---|---|
| Type | UC Rate (In PhP/kWh) |
| ME- NPC SPUG Basic UC-ME True Up (CY 2013) True Up (CY 2014) |
0.2238 0.1805 0.0200 0.0233 |
| ME – REDCI | 0.0017 |
| EC | 0.0000 |
| SCC | 0.0000 |
| SD | 0.0428 |
| Total UC | 0.2683 |
B. NPC’s Effective Rates
The NPC’s effective rates* for the billing period June 2024 are as follows:
| Components | Rates (PHP/kWh) | ||
|---|---|---|---|
| Luzon | Visayas | Mindanao | |
| BGC | 4.3648 | 3.7255 | 2.8177 |
| FBHC | 0.0245 | 0.0177 | 0.0282 |
| Total Basic Rate | 4.3893 | 3.7432 | 2.8459 |
| Add: Adjustments | |||
| FPPCA** | 0.0000 | 0.0000 | 0.0000 |
| FxA** | 0.0000 | 0.0000 | 0.0000 |
| Effective Rate* | 4.3893 | 3.7432 | 2.8459 |
| Add: Prior Years’ adjustment | In PHP value specific for each customer covered during the period | ||
| 10th – 17th GRAM | Covers cost adjustments for October 2008 – February 2010 | Covers cost adjustments for January 2007 – February 2010 | Covers cost adjustments for January 2007 – February 2010 |
| 15th – 16th ICERA | Covers cost adjustments for July 2009 – February 2010 | ||
| 1st – 5th TAFPPC | Covers cost adjustments for March 2010 – December 2014 | ||
| 1st – 5th TAFxA | Covers cost adjustments for March 2010 – December 2014 | ||
*Effective Rate is the sum of the Basic Generation Rate, Franchise & Benefits to Host Communities and adjustments such as the GRAM and ICERA DAA and the FPPCA and FxA under the ACRM.
**Zero (0) FPPCA and FxA is in accordance with the ERC Order dated 28 June 2016 under ERC Case No. 2008-019
In addition to the above rates, PSALM resumed implementation of the 10th to 17th GRAM and 15th to 16th ICERA to customers covered by the test period effective January 2018 billing period in accordance with ERC Order dated 19 December 2017 under ERC Case Nos. 2008-042 RC, 2008-053 RC, 2008-063 RC, 2009-056 RC, 2010-003 RC, 2010-068 RC, 2010-067 RC, and 2010-073 RC.
VII. Updates on Benefits to Host Communities Pursuant to Energy Regulation No. 1–94
For the period July 2024, PSALM had no disbursements to its beneficiaries.
