Senate extends PSALM’s corporate life by five years

The Senate unanimously approved Senate Bill No. 2837 on Monday, extending the corporate life of the Power Sector Assets and Liabilities Management Corp. (PSALM) by five years.

This extension allows PSALM to manage government energy assets until June 2031, giving it sufficient time to settle existing obligations and implement asset management plans for significant power facilities and real estate.

Senator Mark Villar emphasized that the company has reduced its financial obligations by 76 percent since its establishment in 2001, from P1.2 trillion pesos to P294 billion pesos as of December 2023.

PSALM is also prohibited from collecting or charging consumers for stranded costs and debts during this extended period without Energy Regulatory Commission approval.

Finance Secretary Ralph G. Recto supported the extension, stressing that PSALM still has debts and assets to address before its planned dissolution.