ERC seeks other ways of how PSALM can recover P62B

MANILA, Philippines - The Energy Regulatory Commission (ERC) will look into whether the Power Sector Assets and Liabilities Management Corp. (PSALM) can recover P62 billion from power consumers in the form of higher universal charges.

PSALM is currently studying its options on how to recover the P62-billion damages sought by former employees of the National Power Corp. (Napocor).

One option PSALM is looking at is to recover the amount through an increase in the universal charge, a separate line in consumers’ electricity bills.

“We will look into it if PSALM applies for it,” ERC executive director Saturnino Juan said in an interview.

Napocor lost a class suit filed by former members of its Drivers and Mechanics Association (DAMA) who were terminated in 2003 and is being asked to pay P62 billion in damages, according to a Supreme Court resolution dated June 30, 2014.

The petitioners comprised about 8,018 beneficiaries and based on their representation to the court, are claiming P60 billion in payables. The remaining amount represents legal fees.

PSALM estimates an increase in the universal charge of 13 centavo per kilowatt-hour (kwh) over a period of 10 years from the previous estimate of 26 centavos, noting that the actual amount could just be roughly P30 billion or half of the original P62 billion.

The government corporation is still verifying the actual amount.

However, PSALM president Emmanuel Ledesma  Jr. said there is still no decision yet on whether or not the government corporation would indeed pass this on to consumers.