13 Aug 2019
The Power Sector Assets and Liabilities Management Corporation (PSALM) is very pleased that President Rodrigo Duterte has signed into law the “Murang Kuryente Act” or Republic Act 11371. PSALM believes this law will unburden power consumers from paying additional Universal Charge for Stranded Contract Costs and Stranded Debts that could possibly amount to PHP0.86 per kilowatt-hour.
“RA 11371 will effectively lower electricity rates. It will also save PSALM from incurring additional borrowing costs in order to settle the maturing NPC obligations,” PSALM President and CEO Irene Besido-Garcia said.
For families consuming an average of 200/kWh per month, this translates to about PHP172 of monthly savings from reduced electricity cost or about PhP2,064 of savings per year. The Malampaya funds will cover PSALM’s shortfalls on a yearly basis and it will not have to seek additional UC impositions on electricity consumers.
“This is a meaningful and viable step towards the significant reduction of PSALM’s financial obligations unburdening the ordinary consumer from paying stranded costs in the future,” Garcia added.
PSALM thanks the members of the Senate Committee on Energy led by Senator Sherwin Gatchalian and the members of the House of Representatives Committee on Energy led by Representative Lord Allan Velasco for prioritizing the welfare of electricity consumers through the passage of this important legislation.
Corporate Communications Division