President Ferdinand Marcos Jr. has signed a law extending the corporate life of Power Sector Assets and Liabilities Management (PSALM) Corporation for another 10 years.
According to Republic Act No. 12179, PSALM Corp. shall continue to exist for a period of 10 years from the expiration of its original term on June 26, 2026.
“All assets held by it, all monies and properties belonging to it, and all its liabilities outstanding upon the expiration of its term of existence shall revert to and be assumed by the National Government,” the new law read.
“PSALM Corp. shall be prohibited from collecting or charging consumers for stranded costs and stranded debts during its extended corporate life, except as otherwise approved by the Energy Regulatory Commission prior to the date of the passage of this Act.”
PSALM said its life extension ensures it can continue to fulfill its principal mandate: managing the orderly sale, disposition, and privatization of National Power Corporation (NPC) generation assets, real estate, and other disposable assets, as well as Independent Power Producer (IPP) contracts.
“The extension of PSALM’s corporate life signals our firm resolve to complete the power sector reform agenda and fulfill the intent of the Electric Power Industry Reform Act of 2001,” PSALM president and chief executive Dennis Edward Dela Serna said.
“This reform is critical in achieving a financially viable and investor-friendly power industry that benefits Filipino consumers through reliable and affordable electricity,” he added.
Created under the EPIRA, the corporation was tasked to manage the transition of the country’s power industry to a competitive environment and enhance the inflow of private capital and broaden the ownership base of the energy industry.
The agency has privatized 82 percent of its generation assets and reduced its assumed liabilities by 78 percent from the 2003 peak level of P1.24 trillion to P273.5 billion as of end-December 2024.
PSALM said that due to the remaining asset portfolio and the complexity of its obligations, an extension was deemed essential to complete its responsibilities effectively.
“This law is a vote of confidence in PSALM’s efforts and a recognition of the work that remains to be done,” Dela Serna said.
“We welcome this extension as a crucial window to complete our financial and operational targets under EPIRA. Over the next decade, we will double down on our mandate to reduce fiscal burdens, improve asset value recovery, and help pave the way for a modernized and inclusive energy sector.”
