29 Mar 2007
More and more, communities in the country's far-flung provinces are beginning to see the light, thanks to the government's Rural Electrification Program that is getting a major boost from PSALM.
One of PSALM's functions is the assumption of the loans incurred by electric cooperatives (ECs) for the purpose of financing the Rural Electrification Program, one of the thrusts of the government for enacting Republic Act No. 9136, the Electric Power Industry Reform Act (EPIRA).
As of 28 February 2007, PSALM has written off a total of PHP5.78 billion worth of loans to the National Electrification Administration (NEA) and other government agencies. PSALM has paid the NEA an aggregate of PHP266.39 million for January and February 2007. Overall, the Corporation has forwarded payments amounting to PHP5.7 billion to the agency.
Last 21 November, PSALM settled the PHP2.12-million loan obligation of the Romblon Electric Cooperative Inc. to the Provincial Government of Romblon. With this settlement, PSALM has paid a total of PHP80.3 million, or 94.23% of the PHP85.2-million total loans of ECs to local government units and other government agencies.
The paid-off value constitutes 31.98% of the total amount approved for condonation. PSALM has approved the condonation of a total of PHP18 billion worth of loans incurred by the various ECs to the NEA and other government institutions.
The government's mandate is for PSALM to assume all outstanding obligations of the ECs effective 26 June 2001, the start of the implementation of the EPIRA.
UNIVERSAL CHARGE
Also part of PSALM's mandate is the administration of the fund collections from the Universal Charge (UC). The UC is a non-bypassable charge collected from all end-users every month by the distribution utilities, the National Transmission Corporation and suppliers based on the approval of the Energy Regulatory Commission. These funds are used for the following: Settlement of National Power Corporation's stranded contract costs and stranded debts, missionary electrification, equalization of taxes and royalties applied to indigenous or renewable sources of energy vis-à-vis imported energy fuels, an environmental charge for watershed rehabilitation and management, and a charge to account for all forms of cross-subsidies.
At present, only the UC for missionary electrification and for environment and watershed rehabilitation has been imposed and is being collected.
Total collection/remittances as of 28 February 2007 reached PHP6.3 billion. Of this amount, PSALM disbursed PHP6.15 billion from the Special Trust Fund for the environmental charge of National Power and the missionary electrification of National Power-Small Power Utilities Group in accordance with the EPIRA provisions. The UC fund's current balance is PHP175 million.
Strategic Communications and Partnership Division |