MANILA — Senators voted to approve on 3rd and Final reading  Senate Bill 2837 which extends by 5 years the corporate term of the Power Sector Assets and Liabilities Management Corporation. 

The bill amends section 50 of Republic Act 9136 or the proposed Electric Power Industry Reform Act of 2001. Under the bill, the PSALM shall continue to exist for a period of 5 years from the expiration of its original term on June 26, 2026.

PSALM Corp. however is 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 passage of the extension.

Senator Mark Villar, the bill's principal sponsor thanked his colleagues for their support and reported on the progress of the company which was entrusted to formulate and implement a privatization plan for the government's energy assets previously held by the National Power Corporation.

"For the past 23 years, PSALM has managed the orderly sale, disposition, and privatization of these assets with the objective of liquidating all NPC financial obligations and stranded contract costs. As of December 2023, PSALM substantially reduced its financial obligations by 76 percent or from P1.2 trillion pesos to P294 billion pesos. PSALM likewise remitted to the Bureau of Treasury around P26 billion as dividends to the national government. Mr. President, through this bill, we will provide PSALM five more years to give them sufficient time to settle existing obligations. This will also enable PSALM to commence asset and management plans for several significant independent power producer facilities and real estate assets," Villar said.