FDC to Senate: Dissolve PSALM

CEBU, Philippines - The Freedom from Debt Coalition – Cebu is calling on Senate to junk proposed Senate Bill 3250, which seeks to extend to 10 years the existence of Power Sector Assets and Liabilities Management (PSALM) Corporation, a state-owned company created to manage the sale, disposition, and privatization of the generation assets, real estate and other disposable assets of the National Power Corporation (NPC).

PSALM Corporation also owns the transmission assets and facilities and sub-transmission functions and resources of the TransCo.

Under Republic Act 9136 or the Electric Power Industry Reform Act, which created PSALM Corporation, “The principal purpose of the PSALM Corp. is to manage the orderly sale, disposition, and privatization of NPC generation assets, real estate and other disposable assets, and IPP contracts with the objective of liquidating all NPC financial obligations and stranded contract costs in an optimal manner.”

PSALM Corp. is expected to exist for 25 years, but Senator Serge Osmeña has filed Senate Bill 3250, which seeks to extend its existence for 10 years more.

But FDC – Cebu contended that PSALM Corp. has not done its job and might as well be dissolved.

“PSALM Corp. failed to drastically reduce Napocor’s debt and electricity rates. The still huge Napocor debt is being passed on to consumers through the Universal Charge. Worse, it has this callous practice of giving huge incentives and bonuses to its executives and employees,” FDC-Cebu said in a statement.

Jose Aaron Pedrosa, secretary-general of FDC- Cebu, said the Senate should instead push for a review and renegotiation of onerous contracts entered into by NPC with various foreign and local independent power producers.

“Its life, therefore, must be cut short, not extended. In fact, PSALM Corp., should be audited – its internal operations, the transactions it has undertaken, the contracts and agreements it has entered into, and more,” FDC – Cebu’s statement reads further. —(FREEMAN)