29 Apr 2025
On April 18, 2025, the Republic Act No. 12179, titled “An Act Amending Section 50 of Republic Act No. 9136, Otherwise Known as the Electric Power Industry Reform Act of 2001” lapsed into law in accordance with Article VI, Section 27(1) of the Constitution. The new law grants PSALM a ten-year extension beyond its original corporate term, which was set to expire on June 26, 2026.
This ensures that PSALM can continue to fulfill its principal mandate: managing the orderly sale, disposition, and privatization of National Power Corporation (NPC) generation assets, real estate, and other disposable assets, as well as Independent Power Producer (IPP) contracts. The law strengthens PSALM’s capacity to liquidate NPC’s financial obligations and stranded contract costs in a transparent and optimal manner.
“The extension of PSALM’s corporate life signals our firm resolve to complete the power sector reform agenda and fulfill the intent of the Electric Power Industry Reform Act of 2001,” said PSALM President and CEO Dennis Edward A. Dela Serna. “This reform is critical in achieving a financially viable and investor-friendly power industry that benefits Filipino consumers through reliable and affordable electricity.”
Created under EPIRA in 2001, PSALM was tasked to manage the transition of the country’s power industry to a competitive environment and enhance the inflow of private capital and broaden the ownership base of the energy industry. Since its inception, the agency has privatized 82% of its generation assets and reduced its assumed liabilities by 78% from 2003 peak level of PHP1,240.60 billion to PHP273.5 billion as of end December 2024. However, due to the remaining asset portfolio and the complexity of its obligations, an extension was deemed essential to complete its responsibilities effectively.
The law provides PSALM with the time and authority to intensify its privatization efforts, maximize the value of government power assets, and ensure the full settlement of outstanding liabilities. The continuation of its operations also guarantees that gains from previous reforms are preserved and that the government remains on track to achieve long-term energy sector sustainability.
“This law is a vote of confidence in PSALM’s efforts and a recognition of the work that remains to be done,” PSALM President and CEO Dela Serna added. “We welcome this extension as a crucial window to complete our financial and operational targets under EPIRA. Over the next decade, we will double down on our mandate to reduce fiscal burdens, improve asset value recovery, and help pave the way for a modernized and inclusive energy sector.”
The law will take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation. With this extension, PSALM is well-positioned to conclude its mission of fiscal discipline and energy sector modernization, helping to lay the foundation for a more resilient, inclusive, and efficient power industry for future generations of Filipinos.
Strategic Communication and Partnerships Division |