By
Bernadette D. Nicolas
- March 11, 2020
THE Power
Sector Assets and Liabilities Management Corp. (PSALM) slashed its debts by
6.05 percent or P27.18 billion in 2019, bringing the outstanding
principal financial obligations to P422.011 billion last year, from P449.19
billion in 2018.
Not only did PSALM
exceed its original target to slash its debt by P15.211 billion last year, it
also collected P98.37 billion in revenues and receivables in 2019 on the back
of efficient implementation of its liability management strategies.
PSALM is the entity
created by the Electric Power Industry Reform Act (Epira), which restructured
the power industry by privatizing the assets of NPC. The obligation transferred
to PSALM was at a high of P1.24 trillion. This is on top of the P16-billion
loans of electric cooperatives with the National Electrification Administration
that were assumed by PSALM.
In a report to Finance
Secretary and PSALM Chairman Carlos G. Dominguez III, PSALM
President Irene Joy Besido-Garcia said the revenues and receivables came
from privatization proceeds, power sales, collections from delinquent and
overdue accounts and proceeds from the universal charges (UC).
The state-owned firm
also recorded a 93.5-percent collection efficiency in 2019 for current power
sales, enabling the firm to collect P11.76 billion from its power customers.
Garcia said PSALM
collected P4.32 billion in overdue and delinquent accounts by offering
borrowers flexible payment schemes through restructuring agreements or special
payment agreements, leading the state-owned firm to surpass its target of P4.12
billion.
“These flexible payment
schemes encouraged entities and electric cooperatives to viably settle their
outstanding obligations,” she said in the report.
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