02 Feb 2023
The Power Sector Assets and Liabilities Management Corporation (PSALM) reduced its assumed financial obligations to P346.76 billion by end of 2022, representing a reduction of P8.44 billion from the P355.25 level at the start of the year despite the hostile market conditions.
“PSALM’s revenues were buoyed by efforts to sell power supply at reasonable returns and asset disposal using streamlined procedures. These revenue drivers were complemented by the efficient management of foreign exchange risks by contracting new loans in Philippine peso to refinance maturing foreign denominated loans and the robust collection of outstanding receivables that have remained unpaid to PSALM for the longest time as well as the measures implemented to cut on operational costs,” Dennis Edward A. Dela Serna, PSALM President and CEO, said.
From January to November 2022, PSALM collected P18.94 billion from its power sales. This amount translates to a 94.62% collection efficiency.
PSALM has a 99.98% Universal Charge (UC) collection efficiency from collecting entities, obtaining P19.06 billion in UC remittances from January to December 2022. Interest earnings from deposits and placements of UC funds amounted to P0.342 billion while UC fund disbursements amounted to PHP18.921 billion.
PSALM has remained consistent in its goal of securing a 100% UC-Missionary Electrification (ME) Disbursement to National Power Corporation (NPC) and Renewable Energy (RE) Developers. PSALM Disbursed 100% UC-ME to NPC amounting to PHP14.79 billion and to RE Developers amounting to PHP0.19 billion with a total amount of PHP14.98 billion.
As to the disposal of real estate assets, PSALM generated an upfront income of P1.84 billion. The Corporation also smoothly commenced the privatization of the Casecnan Hydroelectric Power Plant, with 14 bidders earnestly showing interest to participate in the sale.
PSALM generated P35.4 million worth of proceeds and saved costs from maintaining disposable assets from previously sold power plants located at Tiwi Geothermal Power Plant, Bacman Geothermal Power Plant, Naga Coal-Fired Power Plant Complex, Cebu Diesel Power Plant II, Ligao Stockyard, Batangas Coal-Fired Thermal Power Plant, Makban Geothermal Power Plant and Mexico Warehouse. All the other disposable assets covered by the sale were completely hauled from these sites.
Some of PSALM’s power accounts have been marred with delinquency in payments. Given this, PSALM set an initial conservative target collection of PHP7.106 million from problematic accounts. From January to November 2022, however, PSALM over-achieved with an actual collection of PHP797.07 million from problematic accounts of power customers from seven (7) industries, one (1) Independent Power Producer Administrator (IPPA), one (1) private operator/distribution utility, and one (1) private entity. Another P380 million was added to PSALM’s coffers from clean accounts from the target amount of P260 million through flexible payment schemes.
Priorities for 2023
PSALM is prioritizing the privatization of the 165-MW Casecnan Hydroelectric Power Plant and the disposal of PSALM’s remaining real estate assets. Also upcoming is the commencement of the sale process for the IPP contract of the combined 796.46-MW Caliraya-Botocan-Kalayaan (CBK) Power Plant Complex.
As for the asset management thrusts of the corporation, PSALM aims to efficiently manage its power plants through third-party operators. These are the Agus-Pulangi Hydroelectric Power Complex operated by the NPC pursuant to a Management and Operations Agreement (MOA) with PSALM and the Casecnan Hydroelectric Power Plant operated by Soosan ENS Co., Ltd., pursuant to an Operation and Maintenance Service Contract (OMSC) procured by PSALM pending the privatization of said facility.
PSALM is continuously selling energy capacities at a lower rate from the Agus & Pulangi Hydros, Casecnan Hydro and remaining IPP plants, namely CBK Hydros, Mt. Apo Geothermal and Mindanao Coal.
Other priorities include tariff adjustments for PSALM plant’s true-up cost, servicing of maturing financial obligations funded from continuous collection of proceeds from asset privatization, UC-Stranded Debts, plant revenues and Murang Kuryente Act (MKA) allocation and successful litigation of pending cases.
Strategic Communications and Partnership Division |