The Energy Regulatory Commission (ERC) granted the state-run Power Sector Assets and Liabilities Management (PSALM) Corp.’s request to recover P21.47 billion in operating costs of power plants from 2007 to 2014.
In two separate orders on June 20, the ERC said PSALM can implement the costs related to fuel and power purchase power and foreign exchange-related costs for running these facilities.
PSALM said the amount includes the deferred accounting adjustments of P15.55 billion on the generation rate
adjustment mechanism (GRAM) and P2.88 billion incremental currency exchange rate adjustment (ICERA).
It also includes P3.04 billion in adjustments under the automatic cost recovery Mechanism (ACRM).
PSALM said money will be used to address the funding requirements for servicing its maturing debts.
On March 26, 2012, the ERC approved the GRAM and ICERA adjustments. However, the implementation was deferred pending the regulatory body’s resolution on the recovery or refund scheme filed by PSALM on June 21, 2012.
The ERC approved with modification PSALM’s planned GRAM and ICERA recovery scheme and the cost allocation for each National Power Corp. and PSALM customer per grid.
“These approved cost adjustments will be recovered from and refunded to customers who drew power from NPC and PSALM during the said test periods (2007 to 2014), for an implementation period of 60 months or five years, effective next billing period,” PSALM said.