Universal Charge
Administration of Universal Charge

Lighting the countryside: PSALM continues to significantly contribute to government efforts to provide a steady and reliable supply of electricity in the country's far-flung areas.

Communities in these areas get much-needed electric power through PSALM’s prudent management and disposal of the collections from the Universal Charge (UC) for Missionary Electrification (UC-ME).

A non-bypassable charge mandated under Section 34 of the EPIRA, the UC is imposed on electricity consumers for the following purposes:

  1. Missionary electrification;
  2. Payment for stranded debts and stranded contract costs;
  3. An environmental charge for watershed rehabilitation and management;
  4. Equalization of taxes and royalties applied to indigenous or renewable sources of energy vis-à-vis imported energy fuels; and
  5. A charge to account for all forms of cross-subsidies.

At present, only the UC-ME and the UC for Environment and Watershed Rehabilitation and Management (UC-EWRM) amounting to PhP0.0025 per kilowatt-hour are imposed on and are being collected from electricity consumers.

The UC is collected monthly by the National Grid Corporation of the Philippines and the distribution utilities based on the approval of the Energy Regulatory Commission (ERC). The collections are remitted to PSALM every 15th of the following month.

I. Universal Charge (UC) Administration

  • A. Universal Charge Remittances, Interests & Disbursements

    As of 30 June 2022, remittances of collecting entities (CEs) to PSALM amounted to PHP230.132 billion, while interest earnings from deposits and placements of UC funds amounted to PHP0.330 billion. On the other hand, UC fund disbursements amounted to PHP227.845 billion. Below are the details of UC remittances, interests and disbursements

    Universal Charge Remittances, Interests and Disbursements
    As of 30 June 2022 (In PHP Billion)

    Particulars Remittances 1/ Interest Disbursements 2/
    Special Trust Funds: Missionary Electrification (ME) - NPC SPUG 132.342 0.045 132.379
    ME - Renewable Energy Developer Cash Incentive (REDCI) 1.102 0.032 0.363
    Environmental Charge (EC) 3/ 2.562 0.175 1.491
    Stranded Contract Cost (SCC)4/ 80.929 0.078 80.393
    Stranded Debts 14.807 0.002 14.807
    Total 231.742 0.332 229.433

    The following disbursements/fund transfers were made from the respective UC Special Trust Fund (STF):

    1. UC-ME and EC

      • PHP132.379 billion and PHP1.491 billion were disbursed to NPC, chargeable against the UC-ME and EC fund, respectively, in accordance with the provisions of the EPIRA and the Energy Regulatory Commission (ERC) decisions/orders
    2. UC-SCC and UC SD

      • PHP80.393 billion and PHP14.807 billion were transferred from the UC-SCC and UC-SD STF accounts to PSALM’s UC-SCC and UC-SD Special Fund Accounts (SFA), following the PSALM Board-approved Guidelines and Procedures on Disbursement and Utilization of UC-SCC and UC-SD of NPC.

    3. 1 Balance includes CEs’ remittances during the period 19-30 April 2022 which were deposited to the Main Trust Account (MTA) but will be transferred to each UC-STF on 20 May 2022, pursuant to Section 7 (c) of the ERC approve Guidelines and Procedure Governing Remittances and Disbursements of the UC (UC Guidelines)
      2 Includes Disbursement to Oriental Mindoro Electric Cooperative, Inc. (ORMECO) in the total amount of PHP40,442,954.47, for the recovery of fuel costs chargeable against the UC-ME fund, pursuant to ERC Orders dated 16 June 2014 and 24 September 2014 covering ERC Case No. 2013-191RC
      3 Collection of UC-EC of PHP0.0025/kWh from all electricity end-users by all collecting entities, including NGCP, has been suspended effective 22 May 2020, until further notice from the ERC
      4 Collection of UC-SCC of PHP0.0543/kWh from all electricity end-users by all collecting entities has ceased effective February 2020 in view of full recovery of ERC-approved SCC amount of PHP5.117 billion

    4. REDCI

      • Cash Incentives totaling PHP0.36 billion was paid to the following renewable energy (RE) developers, in accordance with the ERC-approved Rules to Govern the Availment and Disbursement of Cash Incentive to RE Developers Operating in Missionary Areas
        RE Developers Disbursed Amount
        (PhP)
        Romblon Electric Cooperative, Inc. (ROMELCO) for the 900 kW Cantingas Mini Hydro Power Plant Corporation (CHPC) 0.08
        Sunwest Water and Electric Co. (SUWECO) for the 1.5 MW Hitoma 1 & 2.1 MW Solong Hydroelectric Power Plants 0.17
        ORMECO for the 2.1 MW Linao Cawayan Mini-Hydro Power Plant (LCMHPP) 0.11
        TOTAL 0.36

    Remittances for the Period January to June 2022

    For the month of June 2022, PHP8.815 billion in UC remittances was received by PSALM, broken down as follows

    For the Period January to June 2022 (In PHP Billion)

    Month ME (NPC-SPUG) ME (REDCI) EC SCC SD Total
    January 1.194 0.017 0.000 0.003 0.330 1.544
    February 1.048 0.012 0.000 0.004 0.286 1.350
    March 0.986 0.011 0.000 0.003 0.271 1.271
    April 1.240 0.019 0.001 0.005 0.346 1.611
    May 1.118 0.008 0.000 0.001 0.303 1.430
    June 1.247 0.014 0.000 0.004 0.343 1.608
    Total 6.833 0.081 0.001 0.020 1.880 8.815

    *Differences from previous submission are due to rounding off

    Disbursements for January to June 2022

    For the months of January to June 2022, PSALM disbursed a total amount of PHP8.730 billion to UC beneficiaries as follows:

    For the Months of January to June 2022 (In PHP Billion)

    Month ME (NPC-SPUG) ME (REDCI)1 EC2 SCC3 SD Total
    January 1.191 - - - 0.327 1.423
    February 1.048 0.012 0.000 - 0.286 1.322
    March 1.001 0.006 - - 0.275 1.282
    April 1.245 0.003 - - 0.347 1.595
    May 1.120 0.002 - - 0.303 1.425
    June 1.245 - - - 0.343 1.588
    Total 6.836 0.014 - - 1.880 8.730

    *Differences from previous submission are due to rounding off

    Note:
    1/No REDCI claim with complete documentary requirements was received for the month of January 2022
    2/Awaiting ERC Order/Decision on the disbursement of UC-EC
    3/The ERC approved amount to PHP5,117,060,647.80 per ERC Dec ision on Case No. 2015-139 RC dated 10 April 2019 has been fully recovered on 20 February 2020, thus no UC-SCC disbursements was made starting March 2020


In accordance with the ERC decision dated 28 January 2013 under Case No. 2011-091 RC, the amount of PHP0.343 billion was transferred from the UC-SD to the UC-SD SFA for the period June 2022.

II. ERC - Approved UC Rates

  • A. Updates on ERC-Approved UC Rates

    The table below shows the ERC-approved UC rates being implemented as of 30 June 2022

    Type PhP/kWh
    ME (Missionary Electrification) 0.1544
    ME - REDCI (Renewable Energy Developers Cash Incentive) 0.0017
    EC (Environmental Charge) 0.0000 1/
    SCC (Stranded Contract Cost) 0.0000 2/
    SD (Stranded Debts) 0.0428
    Total UC (Collected from all electricity end-users) 0.1989

    1/ Collection of UC-EC of PHP0.0025/kWh from all electricity end-users by all collecting entities, including NGCP, has been suspended effective 22 May 2020, until further notice from the ERC
    2/ Collection of UC-SCC of PHP0.0543/kWh from all electricity end-users by all collecting entities has ceased effective February 2020 in view of full recovery of ERC-approved SCC amount of PHP5.117 billion

  • B. Updates on UC Rate Applications

    • ME

    • The table below shows the ERC-approved UC rates being implemented as of 31 December 2021:

      ERC Case No. Date Filed Purpose Amount (In PhP)
      2013-191 RC 20 Sep 13 Shortfall of CY 2012 Subsidy 5,370,284,135.27
      2014-089 RC 20 Jun 14 Shortfall of CY 2013 Subsidy 5,462,754,938.54
      2014-135 RC 14 Sep 14 CY 2015 Subsidy 12,093,887,870.00
      CY 2016 Subsidy 11,371,002,556.00
      2016-008 RC 26 Jan 16 Shortfall of CY 2014 Subsidy 5,895,588,224.47
      2016-134 RC 26 May 16 CY 2017 Subsidy 10,324,139,351.43
      2017-006 RC 27 Jan 17 Shortfall of CY 2015 Subsidy 1,111,902,576.28
      2017-054 RC 30 May 17 CY 2018 Subsidy 13,304,273,206.97
      2018-076 RC 13 July 18 CY 2019 Subsidy 17,804,818,088.38
      2019-004 RC 11 Jan 19 Surplus of CY 2016 (1,483,845,466.76)
      2019-069 RC 12 Sep 2019 CY 2020 Subsidy 18,460,843,967.62
      2019-084 RC 28 oct 2019 True up for 2017 849,455,932.62
      2020-004 RC 23 Jan 2020 True up for CY 2018 5,918,612,399.05
      2020-011 RC 13 Mar 2020 CY 2021 Subsidy 20,730,183,569.03
      2021-017 RC 16 Mar 2021 Shortfall of CY 2019 Subsidy 7,562,400,703.79
      2021-022-RC 31 Mar 2021 CY 2022 Subsidy 20,209,687,236.96
      2022-014-RC 15 Mar 2022 CY 2023 Subsidy 20,462,800,653.03
      2022-030-RC 15 Mar 2022 Shortfall of CY 2020 Subsidy 5,542,978,254.51
      Total 180,991,768,197.19
    • EC

    • The following petitions for the availment of the EC share from the Universal Charge were filed by NPC before the ERC for its resolution:

      ERC Case No. Date Filed Purpose Amount (In PhP)
      2014–021 RC 12-Mar-2014 CY 2014 UC-EC Availment 320,008,239.75
      2015-050 RC 12-Mar-2015 CY 2015 UC-EC Availment 426,875,421.95
      2016-019 RC 14-Mar-2016 CY 2016 UC-EC Availment 426,710,057.72
      2017-021 RC 15-Mar-2017 CY 2017 UC-EC Availment 431,192,804.80
      2018-103 RC 15-Oct-2018 CY 2018 UC-EC Availment 239,350,386.41
      2019-021 RC 03 Mar 2019 CY 2019 UC-EC Availment 240,425,017.78
      2021-023 RC 31 Mar 2021 CY 2022 UC-EC Availment 246,550,016.81
      2022-013-RC 14 Mar 2022 Plan 18 UC-EC Availment 335,548,019.33
      Total 2,666,659,964.55
  • C. Updates on the Pending UC-SCC and UC SD filed before the ERC

  • In view of the effectivity of the Murang Kuryente Act (MKA) and its Implementing Rules and Regulations (IRR), ERC, in its Order dated 28 May 2020, dismissed the following PSALM UC-SCC applications:

    ERC Case No. Date Filed Purpose Amount (In PhP)
    2017-066 RC 06 July 2017 CY 2016 UC-SCC Availment 3,686,192,736.05
    2019-048 31 July 2018 CY 2016 UC-SCC Availment 5,228,678,356.46

    For UC-SD, the CY 2014 True-Up Adjustment Motion for Reconsideration filed by PSALM on 06 June 2019 amounting to PHP1,578,164,643.22 was declared moot and academic by ERC in its Order dated 28 May 2020 as posted in their website.


    The following UC-SD True-Up Adjustment applications were likewise dismissed due to the effectivity of the MKA and its IRR:

    ERC Case No. Date Filed Purpose Amount (In PhP)
    2016-150 RC 30 June 2016 CY 2015 True-Up Adjustment 27,670,386,541.73
    2017-069 RC 31 July 2017 CY 2016 UC-SCC Availment 34,642,180,036.26
    2018-087 RC 31 July 2018 CY 2017 True-Up Adjustment 11,804,635,030.22
    019-047 RC 25 June 2019 CY 2018 True-Up Adjustment 4,722,490,975.31