Major Functions
PSALM engages in various preparatory activities preceding the bidding process, including the drafting of information memoranda and transaction documents meant for potential bidders. Additionally, PSALM conducts due diligence on its assets to assess their readiness for privatization.
The publication of the Invitation to Bid marks the official commencement of the bidding process. This notice outlines schedules for the pre-bid conference, due diligence by bidders, distribution of final transaction documents, and the date for bid opening.
PSALM further appoints IPP administrators, obtained through public bidding, to oversee the energy output of different power plant portfolios managed by independent power producers (IPPs) contracted in the 1990s by National Power to fulfill the country's increasing electricity demands.
PSALM manages all existing debt of National Power, capital lease payments to IPPs, and outstanding obligations of electric cooperatives to the National Electrification Administration and other government agencies. This function encompasses the management of additional liabilities assumed by PSALM and its future borrowings to ensure timely payment of principal and interest. The management strategy includes refinancing, when necessary, at minimum cost and mitigating foreign exchange risks associated with debts denominated in foreign currency through hedging or other means.
Under the supervision and approval of the ERC (Energy Regulatory Commission), PSALM administers the collection of the Universal Charge (UC) from all electric consumers by distribution utilities on a monthly basis. The UC funds are allocated by law to finance missionary electrification, environmental protection projects, and payment of National
