STATE-OWNED Power Sector Assets and Liabilities Management Corp. (PSALM) collected P98.37 billion in revenue and receivables last year, allowing it to slash its debt by P27.18 billion, exceeding targets.
Citing a report by PSALM President Irene Joy J. Besido-Garcia, the Department of Finance (DoF) said P11.76 billion of collections last year were from the state-owned firm’s power customers, P4.32 billion from overdue and delinquent accounts, P74.66 billion from its privatization efforts, and another P7.63 billion were sourced from the universal charge (UC) for stranded contract costs and stranded debt.
“These flexible payment schemes encouraged entities and electric cooperatives to viably settle their outstanding obligations,” Ms. Garcia was quoted as saying in a statement Tuesday.
Last year’s revenue helped reduce PSALM’s principal obligations by 6.05% to P422.011 billion last year. The state-owned firm had set a debt-reduction target of P15.211 billion last year.
PSALM plans to reduce debt further by P11.943 billion this year, she said.
According to Ms. Garcia, PSALM reduced overhead in 2019 to 4.67% of revenue, compared to the 8.92% target set for the year.
She said PSALM’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to 14.07% last year, surpassing its 4.88% target, while it collected P20.115 billion worth UC remittances out of the P20.51-billion total, translating to a 98.07% efficiency rate.
It also disbursed all the proceeds of the UC-Missionary Electrification Charge worth P13.241 billion to the National Power Corp.’s small power utilities group and another P18 million to renewable energy developers.
In 2020, PSALM hopes to collect P10.47 billion from power sales, P754 million from overdue and delinquent accounts and P30.59 billion from UCs.
“PSALM will also diligently comply with the implementing rules and regulations (IRR) of the Murang Kuryente Act, once they are promulgated, including the submission of requirements to oversight agencies to ensure adequate annual allocation from the P208 billion Malampaya Fund for stranded contract costs and stranded debts, including anticipated shortfalls,” Ms. Garcia said.
It is also set to dispose this year of 81 lots with a combined area of over 1 million square meters, privatize Malaya Thermal Power Plant in Pililla, Rizal and begin privatization efforts for the Caliraya-Botocan-Kalayaan Hydroelectric Power Complex in Kalayaan, Laguna. — Beatrice M. Laforga