State-run Power Sector Assets and Liabilities Management Corp. (PSALM) said it disbursed P1.5 billion to six renewable energy developers in fulfillment of its mandate under the universal charge administration.
PSALM said in a statement the fund covers the period 2014 to 2024, with P455.45 million disbursed in 2024 alone.
The company said one of the significant mandates of PSALM is the effective administration of the universal charge (UC) in far-flung and underserved communities.
The UC allocated for this purpose is called the missionary electrification (ME) – renewable energy developers’ cash incentive (REDCI).
The UC ME-REDCI is billed and collected from all electricity-end users. These collections are intended to incentivize RE developers, who play a key role in delivering sustainable and renewable energy solutions to missionary areas, ensuring that rural communities gain access to electricity to drive local development and improve quality of life.
The Energy Regulatory Commission (ERC) approved in 2014 the “Rules to Govern the Availment and Disbursement of Cash Incentive to RE Developers Operating in Missionary Areas” or the “Cash Incentive Rules” with a corresponding UC ME-REDCI rate of P0.0017 per kilowatt-hour.
The UC ME-REDCI rate increased to P0.0044 per kWh effective February 2025, pursuant to the ERC Order promulgated on Oct. 30, 2024, under ERC Case No. 2024-036 RC.
PSALM said its disbursement of cash incentives has had a significant impact on these RE developers, helping them cover operational expenses and ensure the financial viability of their projects.
“PSALM’s disbursements of cash incentives to RE developers helped in many ways. It gives additional funds for the operations and maintenance of the plant, it satisfies the benefits and allowances of every employee and the funding source for Corporate Social Responsibilities of the company,” said Betram Bautista, Ormin Power Inc. vice president of operation.
Rene Fajilagutan, Romblon Electric Cooperative general manager said the 50-percent cash incentives “has provided significant support to the operation of the Cantingas Mini-hydro Power Plant especially in the payment of loan amortization, provide funds in the improvement, and maintenance of facilities for the efficient and reliable supply of electricity.”
