The Senate of the Philippines has approved a measure extending the term of the Power Sector Assets and Liabilities Management (PSALM) Corporation for an additional five years.

Senate Bill (SB) 2837, which amends Section 50 of Republic Act No. 9136 or the Electric Power Industry Reform (EPIRA) Act of 2001, was passed on third reading during Monday's plenary session with 20 affirmative votes and no opposition. This extension will allow PSALM to continue its operations beyond its original expiration date of 26 June 2026.

PSALM was created in 2001 through EPIRA and was tasked to formulate and implement the privatization plan for the government’s energy assets, previously held by the National Power Corporation (NPC).

The corporation also acquired all existing NPC generation assets, liabilities, Independent Power Producers (IPP) contracts, real estate, and all other disposable assets.

PSALM is also mandated to manage the orderly sale, disposition, and privatization of these assets to liquidate all NPC financial obligations and stranded contract costs.

In his privilege speech, Senator Mark Villar noted the PSALM substantially reduced its financial obligations by 76 percent or from PI.2 trillion to P294 billion as of December 2023.

The corporation remitted around P26 billion to the Bureau of Treasury, which will be distributed as dividends to the national government.

“PSALM’S wealth of experience and knowledge gained throughout its 22 years of existence serves to operationalize the policies and provisions enshrined in the EPIRA,” Villar, the measure's sponsor, said.

Villar stressed the PSALM is at the crucial point where the wheel has to continue spinning for the Corporation “to fully achieve its mandate contemplated under EPIRA.”

“Non-renewal of PSALM’s corporate life entails management of obligations that necessitate funding of the projected deficit of P275 billion. Should it be untimely abolished, the national government would have to absorb all of PSALM’s outstanding financial obligations,” he added.