The Energy Regulatory Commission (ERC) has allowed the Power Sector Assets and Liabilities Management (PSALM) Corp. to set its monthly fuel, purchased power and foreign exchange-related charges collectively known as Automatic Cost Adjustments (ACA) to zero.
PSALM’s power customers are the electric cooperatives (ECs), private utilities, industries and government agencies from Luzon, Visayas and Mindanao grids who get their power requirements from them under a Contract for the Supply of Electric Energy.
They will benefit from lower electricity costs beginning the June 2016 billing period.
“With the ERC approval to set the ACA to zero, PSALM has effectively reduced the cost of electricity of its power customers as the fuel, purchased power and foreign exchange-related charges will no longer form part of PSALM’s power bills,” PSALM Officer-in-Charge Lourdes S. Alzona, said.
“The impact of this ERC approval will be greatly felt by power customers in Mindanao where PSALM still has 49 existing power contracts,” she said.
PSALM said that the decision to set the ACA to zero is due to their efforts to privatize the fuel-based generating assets and independent power producers (IPP) plant contracts. The privatization program lessened the agency’s operational costs, warranting the setting of the ACA to zero.
The zero ACA stemmed from the earnest efforts PSALM sustained in privatizing fuel-based generating assets and Independent Power Producers (IPP) plant contracts. This development in the implementation of the privatization program significantly lessened PSALM’s operational costs, warranting the setting of ACA to zero.
“To extend the benefits of the privatization program to PSALM’s customers, PSALM filed the omnibus motion before the ERC.” Alzona said.