Consumers bear govt perks

P298M goes to PSALM

Power consumers are shouldering about P297.8 million spent for fat bonuses, overtime pay and consultancy fees of state-run Power Sector Assets and Liabilities Management Corp. (PSALM), Sen. Ralph Recto charged on Tuesday.
“These were among the reasons why power rates have never gone down nine years after Epira [Electric Power Industry Reform Act] was passed,” Recto said.

Epira created PSALM, whose marching order was to privatize power assets of National Power Corp. (Napocor) and use the proceeds to pay off Napocor’s debts.

“Every time PSALM feels generous and gives its top executives and personnel hefty bonuses, we’re the ones who have to pay for it through power rate adjustments,” Recto said.

He added that P217.3 million in bonuses, salaries, overtime pay and professional fees of consultants are now part of the stranded costs of Napocor that would be paid or recovered through power rate adjustments.

Recto noted that PSALM recently petitioned the Energy Regulatory Commission to allow it to pass on to consumers some P80.9 million in performance bonuses that it gave to its employees.

“This is on top of the P80.5 million in salaries for its 165 employees, P18.4 million in night differential pay for the trading personnel manning the Wholesale Electricity Sport Market, and another P118 million for the professional fees of PSLAM consultants,” he said.

The senator questioned the legality of passing on these expenses to power consumers.

“A cursory reading of Epira yields no mention of any provision prescribing that stranded debts will include employee compensations or bonuses,” he said.
Recto urged the Senate Committee on Energy headed by Sen. Sergio Osmeña 3rd to look into the series of power rate hikes reportedly caused by the ballooning stranded debts of Napocor.

He cited reports that PSALM had only paid a small portion of Napocor’s debts while piling up “new mountain of debts through fresh loans to refinance existing loans and bankroll ballooning operating expenses.” –Efren L. Danao, Senior Reporter, Manila Times