
In a move that deserves public commendation, the Energy Regulatory Commission (ERC) barred the state-run Power Sector Assets and Liabilities Management Corporation (PSALM) from passing on to consumers new universal charges (UC) for stranded debts (SD) and stranded contract costs (SCC).
The focal point of this decision are the beneficiaries of the Murang Kuryente Act (MKA) that was enacted to provide a safety net for those in the poor, marginalized and disadvantaged sectors.
According to projections made by Senator Sherwin Gatchalian, chairperson of the Senate energy committee before the enactment of the new law in August 2020: “A family that consumes 200 kilowatt-hours per month can expect that there will be a ₱172 decrease in their electricity bill every month, equivalent to an additional three to four kilograms of rice per month.” This is because of the deduction of two universal charges from their electricity bills.
PSALM expressed concern over the ₱8 billion allocation made by the Department of Budget and Management (DBM) for PSALM’s subsidy this year, a ₱38 billion shortfall from its expected share from the ₱208 billion Malampaya fund that had been channeled to government coffers that was identified in the MKA as its funding source.

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