PSALM is divided into four main functional groups, each headed and supervised by four vice presidents. These are the General Counsel, the Finance Group, the Asset Management Group, and the Corporate Social Responsibility Group.
The Office of the General Counsel handles all legal transactions relevant to the privatization proceedings, the restructuring of the electricity industry, and the implementation of the EPIRA. It resolves problems and negotiates issues related to the restructuring of National Power’s foreign and domestic loans as well as new borrowings. This group also takes charge of litigating cases and formulating resolutions on matters related to the transfer of ownership of National Power assets from the government to the private sector. It provides professional expertise and legal advice on the management and operation of PSALM and on all contracts and agreements that the corporation forges with other government agencies, instrumentalities and private entities.
The Office of the Vice President for Finance Group handles and oversees the management of the Corporation’s financial resources and obligations covering all aspects of accounting, treasury, and universal charge (UC) administration functions of PSALM. These include the formulation of guidelines for the proper collection of the UC, privatization proceeds, and power bill receivables, and the implementation and maintenance of financial accounting system.
The Finance Group is composed of the following departments:
The Controllership Department takes charge of safeguarding the assets of PSALM, maintaining the corporate books of accounts, preparing financial statements in compliance with various regulatory agency requirements, generating financial management reports to assist management in its decision-making, and conducting special studies and research to ensure that the Corporation complies with Philippine Financial Reporting Standards.
The Treasury Department is responsible for the timely availability of funds to manage the power assets and financial obligations, including debt service and IPP requirements, of PSALM.
Tasked to receive payments from customers (distribution utilities, directly-connected industries, and the National Grid Corporation of the Philippines covering provision of ancillary services), the department monitors the status of accounts of each power customer and addresses delinquent accounts via a restructuring agreement and issuance of Demand Letter and Notice of Disconnection.
With the implementation of the Wholesale Electricity Spot Market (WESM), the department is also responsible for billing and collecting from the Philippine Electricity Market Corporation the revenues generated out of power supplied into the WESM.
Further, with the privatization of NPC generation plants, transmission assets, and IPP contracts, the department bills the Successor Generating Companies, the Concessionaire, and the IPP Administrators, and ensures that payments are received in accordance with the Asset Purchase/Concession/IPPA Agreements.
The Universal Charge Administration Department administers the UC remitted to PSALM by collecting entities located nationwide, disburses the UC fund to respective beneficiaries in accordance with the approval of the Energy Regulatory Commission (ERC) and the existing accounting and auditing rules and regulations.
The department also monitors the compliance of all collecting entities with the reportorial requirements under the ERC-approved Guidelines Governing Remittances and Disbursements of the Universal Charge, updates these guidelines, where necessary, to effectively administer the UC fund, and conducts special studies to assess the impact of regulatory issuances or non-issuance of the same on the financial condition of the Corporation.
Asset Management and Electricity Trading
The Asset Management and Electricity Trading (AMET) Group, through its Asset Valuation and Disposal Department, prepares pertinent documents, guidelines and procedures for the privatization of National Power generation and non-generation assets, real estate, IPP contracts, and other disposable resources. It takes the lead in the bidding process by preparing efficient market strategy, screening potential bidders according to qualification guidelines, and evaluating bids in terms of price structure, financial strength and technical capabilities.
The trading teams handle the market-related operations of National Power and its IPPs in the electricity market. They develop trading and risk management policies, procedures and code of conduct that will guide their trading activities. To pursue the expansion of their market, the teams regularly seek individuals and parties interested in entering into bilateral agreements with the government on the supply of energy.
Corporate Social Responsibility
Although a new function group, Corporate Social Responsibility (CSR) is not peculiar to PSALM in terms of thrust. The Corporation continues to be at the forefront in conducting communal activities that create a positive impact on its stakeholders, employees, consumers, and the general public.
The CSR group develops and implements advocacy campaigns to promote public awareness on matters related to the operations of PSALM. The team, in coordination with the other function groups, ensures that the business processes adapted by the Corporation adheres to legal, ethical social and internationally accepted standards.
In conducting PSALM’s volunteer and outreach undertakings and in supporting the internal and external business activities of the Corporation, the CSR group is guided by the concepts of accountability and transparency to corporate stakeholders and to the public, thereby creating a platform of awareness and contributing to enhancing the economic, social and environmental programs of the government.