25 Jul 2016
The Energy Regulatory Commission (ERC) has approved the Power Sector Assets and Liabilities Management (PSALM) Corporation's omnibus motion to set to zero its monthly fuel, purchased power and foreign exchange-related cost adjustments, collectively known as Automatic Cost Adjustments (ACA) effective June 2016 billing period.
"With the ERC approval to set the ACA to zero, PSALM has effectively reduced the cost of electricity of its power customers as the fuel, purchased power and foreign exchange-related charges will no longer form part of PSALM's power bills." PSALM Officer-in-Charge Lourdes S. Alzona, said.
PSALM's power customers refer to electric cooperatives (ECs), private utilities, industries and government agencies in the Luzon, Visayas and Mindanao grids who obtain their power requirements from PSALM under Contract for the Supply of Electric Energy.
"The impact of this ERC approval will be greatly felt by power customers in Mindanao where PSALM still has 49 existing power contracts," Alzona said.
The zero ACA stemmed from the earnest efforts PSALM sustained in privatizing fuel-based generating assets and Independent Power Producers (IPP) plant contracts. This development in the implementation of the privatization program significantly lessened PSALM's operational costs, warranting the setting of ACA to zero.
"To extend the benefits of the privatization program to PSALM's customers, PSALM filed the omnibus motion before the ERC." Alzona said.
ERC's ruling on the motion of PSALM finds its basis on ERC Resolution No.19, series of 2009 which provides that 'where there is good cause, ERC may allow an exemption from any of the provisions, if such is found to be in the public interest and is not contrary to law or any other related rules and regulations.'
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