ERC allows PSALM to recover over P5 billion

By Alena Mae S. Flores – June 17, 2019 at 08:05 pm
from manilastandard.net

The Energy Regulatory Commission allowed state-run Power Sector Assets and Liabilities Management Corp. to recover P0.0543 per kilowatt-hour for 12 months, or P5.12 billion, from customers under the universal charge for stranded contract costs.

The ERC in a decision promulgated on June 10 said it approved PSALM’s application seeking the availment of stranded contract costs portion of the universal charge of National Power Corp. for 2014.

“The petition filed by PSALM for the recovery of Napocor’s stranded contract costs of the universal charge is approved with modification, subject to conditions,” the regulator said.

Stranded contract costs of Napocor under the Electric Power Industry Reform Act of 2001 are the “excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market.”

The ERC said UC-SCC contract covered four eligible power plants, namely Benguet mini-hydros (Ampohaw and Bakun), Pagbilao 1 and 2, Sual 1 and 2 and Unified Leyte A and B.