Republic of the Philippines


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ERC Dismisses PSALM’s Petitions, Saves Consumers from Additional PhP0.2536/kWh

The Energy Regulatory Commission (ERC) dismissed several petitions filed by the Power Sector Assets and Liabilities Management Corporation (PSALM) involving the collection of the Stranded Contract Costs (SCC) and Stranded Debts (SD) portions of the Universal Charge (UC) for the payment of debts of the National Power Corporation (NPC).  The relevant cases were deemed moot and academic considering the enactment and effectivity of the Murang Kuryente Act (R.A. No. 11371) which indicated that no new Universal Charges for SCC and SD shall be collected from all electricity end-users.  

“The ERC’s dismissal of the PSALM’s petitions embodies the intent of the Murang Kuryente Act which is to lower the cost of electricity being charged to end-users.  With the dismissal of the subject PSALM petitions, electricity consumers will no longer be charged with an additional PhP0.2536/kWh which is supposed to be added to their electricity bills had the Murang Kuryente Act not been passed into law”, explained ERC Chairperson and CEO Agnes VST Devanadera.

The ERC dismissed a total of eight (8) petitions filed by PSALM covering the Calendar Years from 2007 until 2018 for the true up adjustment of the NPC’s stranded debts and stranded contract cost portions of the Universal Charge (UC).

The Murang Kuryente Act mandated the use of PhP 208 Billion of the Malampaya fund for the payment of the NPC’s SCC and SD which was assumed by PSALM.  The said law also provides that PSALM shall not file with the ERC any new petition for UC SCC and SD until the said allocated PhP 208 Billion amount is exhausted and no other allocations are made by Congress.
“Had the ERC been hasty in approving those eight (8) PSALM petitions, consumers may have suffered another rate increase. Electricity consumers can be assured that the ERC is carefully studying the impact of each and every petition filed with it that affects their electricity bill.  The consuming public is the most vulnerable stakeholder in the electric power industry and we, at the ERC, are duty-bound to protect them from unnecessary and unjustified increase in electricity rates,” ERC Chair Devanadera concluded.


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