State-run Power Sector Asset and Liabilities Management Corp. said it reduced the outstanding financial obligation of National Power Corp. by P33.2 billion to P416 billion as of end-October from P449 billion in 2018.
“Note that the obligation transferred to PSALM was at a high of P1.24 trillion, plus the P16 billion loans of electric cooperatives with NEA [National Electrification Administration] assumed by PSALM,” PSALM president Irene Garcia said.
PSALM manages the assets and liabilities of NAPOCOR as mandated under the Electric Power Industry Reform Act of 2001 which restructured the power sector.
“PSALM allowed flexible payment schemes to encourage entities and electric cooperative with non-current/delinquent accounts to viably settle their outstanding obligations,” Garcia said.
She said that with the restructuring agreements and special payment agreement schemes, PSALM put less pressure on their cashflows while allowing them to improve their operations.
She said that as a result, PSALM was able to collect P2.617 billion in non-current arrears from various entities.