Power

PSALM trims debt by P40B

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) reduced its financial obligations by P40.3 billion by the end of 2020, almost 4 times its 2020 target of P10.184 billion.

This year, PSALM is targeting to trim its maturing obligations by P24.63 billion and prepay its obligations of P19 billion with the Bureau of Treasury.

In a presentation to Finance Secretary Carlos Dominguez III, PSALM president and CEO Irene Besido Garcia said they were able to bring down their financial obligations to P381.72 billion as of the end of December last year from P422.01 billion.

Dominguez is the chairman of the PSALM board of directors.

Garcia said the state-run firm collected P12.89 billion from power sales last year, representing a 93.9 percent collection efficiency.

PSALM also collected P2.61 billion from overdue or delinquent accounts, P1.66 billion or 175 percent more than its 2020 goal of P945 million.

Garcia said this was done by allowing flexible payment options that encouraged power customers to settle their past arrears.

PSALM also collected P16.69 billion from the universal charge (UC) due from power distribution utilities (DUs) and other electricity suppliers, achieving its 98-percent collection goal.

All these collections were utilized by PSALM to pay not just its financial obligations, but also all the interest and borrowing costs that matured in 2020 amounting to P12.83 billion.

PSALM also collected deferred privatization proceeds totaling P38.66 billion last year.

Apart from this, PSALM was able to dispose of real property assets amounting to P51.65 million.

With the signing of Executive Order No. 117, PSALM reduced its real property tax liability to P199 million from P1.06 billion, which led to savings of P861 million for PSALM, Garcia said.

PSALM was also able to save P212.85 million in 2020 from competitive bidding exercises for the purchase of its foreign exchange requirements to service maturing debts.

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