23 Apr 2020
The Power Sector Assets and Liabilities Management Corporation (PSALM) has fully remitted the amount of PHP46,077,239.87 as the Share in National Wealth (SNW) for First Quarter 2020 to the local government units (LGUs) hosting PSALM’s renewable power plants. Recipient LGUs were those in Benguet, Bukidnon, Laguna, Lanao del Norte, Lanao del Sur and Pangasinan.
PSALM President and CEO, Irene Besido Garcia, said “We did our best to process the releases immediately and we even coursed them through bank transfers in order for the LGUs to access the funds and perhaps utilize them for their Covid-19 response activities.” The next quarterly release will be in July 2020.
Per the Local Government Code of 1991, on top of the internal revenue allotment, an LGU is entitled to receive either one percent (1%) of the gross sales or receipts of the preceding calendar year or forty percent (40%) of the national wealth taxes, royalties, fees or charges derived by an entity engaged in the utilization and development of the national wealth, whichever is higher. The share is directly remitted to the provincial, city, municipal or barangay treasurer concerned.
PSALM directly releases the SNW to host LGUs as mandated by Sec. 66 of the Electric Power Industry Reform Act or Republic Act 9136, pursuant to Article X Section 7 of the 1987 Constitution and Sections 289 to 294 of the Local Government Code. The laws require that at least 80% of the SNW be utilized by recipient LGUs to lower the cost of electricity in their respective localities. Relevant provisions in the Local Government Code also allow LGUs discretion to use the SNW benefits for productive, developmental and welfare purposes.
Corporate Communications Division