Universal Charge
UC-Stranded Debts and UC-Stranded Contract Costs

The Universal Charge (UC) Stranded Debt (SD) of National Power Corporation (NPC) refer to any financial obligations of NPC which have not been liquidated by the proceeds from the sales and privatization of NPC assets. (Section 4 vv, EPIRA).


The UC Stranded Contract Costs (SCC) of NPC , on the other hand, refers to the excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market, which contracts shall have been approved by the then Energy Regulatory Board as of 31 December 2000 (Section 4 uu, EPIRA).

  1. UC-SD

    • In a Decision dated 27 June 2017 under Case No. 2013-195 RC, the Energy Regulatory Commission (ERC) approved with modification PSALM’s CYs 2011-2012 UC-SD True-Up Adjustments effective next billing period amounting to PhP 24.51 Billion. Accordingly, all Distribution Utilities (DUs) and the National Grid Corporation of the Philippines (NGCP) are directed by the ERC to collect the amount of PhP0.0265/ kWh from the consumers starting on the next billing period and remit the same to PSALM, on or before the 15 day of the succeeding month, until the amount of SD True-up for CYs 2011 and CY 2012 has been fully recovered.

      Further, below is the summary of PSALM's UC-SD True-Up Adjustments Petitions before the ERC:
    • Period Covered Date Filed Amount
      (PhP Billion)
      Proposed Rate
      (PhP/kWh)
      Proposed Recovery Period Remarks
      CYs 2011-2012 UC-SD
      True-Up Adjustment Motion for Reconsideration
      ERC Case No. 2013-195 RC
      07 August 2017 21.4 0.0234 9 years
      • For ERC's Decision
      CY 2014 UC-SD
      True-Up Adjustment
      ERC Case No. 2015-144 RC
      30 July 2015 1.35 0.0013 10.5 years
      • Jurisdictional and Expository Hearings were held on 05 October 2015
      • Pre-trial Conference and Evidentiary Hearings were conducted on 12 October 2015 and 20 October 2015
      • Awaiting submission of Manifestation from Intervenor Meralco and/or for filing of Formal Offer of Evidence (FOE)
      CY 2015 UC-SD
      True-Up Adjustment
      ERC Case No. 2016-150 RC
      30 June 2016 27.67 0.0283 9.5 years
      • Awaiting ERC’s Notice of Public Hearings
      CY 2016 UC-SD
      True-Up Adjustment
      ERC Case No. 2017-069 RC
      31 July 2017 34.64 0.0407 8.5 years
      • Awaiting ERC’s Notice of Public Hearings

      On 30 July 2014, PSALM submitted to the ERC as Compliance a Report under Oath on the calculated CY 2013 UC-SD True-Up Adjustment in the amount of negative PhP49.59 Billion, including all the supporting data relevant to the calculations.


  1. UC-SCC

    • CYs 2007-2010 UC-SCC

      In a Decision dated 28 January 2013, under Case No. 2011-091 RC, the ERC approved PSALM’s Petition for the Recovery of CYs 2007-2010 UC-SCC and authorized PSALM to recover Php 53.851 Billion at a rate of PhP0.1938/kWh. The ERC directed all DUs and NGCP to collect from the consumers the approved UC-SCC starting March 2013 billing period. Pursuant to Section 34 of Republic Act No. 9136, such collections by the DUs and the National Transmission Corporation or TRANSCO (now NGCP) shall be remitted to PSALM Corporation on or before the 15th of the succeeding month.

      In an Order dated 06 March 2017, the ERC authorized PSALM to continuously implement the UC-SCC rate of PhP0.1938/kWh until the approved amount of PhP 53.851 Billion UC-SCC is fully recovered. Further, the ERC directed all DUs and NGCP to continue to collect from consumers the PhP0.1938/kWh UC-SCC charge starting March 2017 billing period and remit the same to PSALM.

      As of 31 July 2017, PhP 53.851 Billion was transferred from the UC-SCC STF account to PSALM’s UC-SCC Special Fund Account (SFA), following the PSALM Board-approved Guidelines and Procedures on Disbursement and Utilization of UC-SCC of NPC.


    • CYs 2011-2013 UC-SCC

      In a Decision dated 06 July 2017 under Case Nos. 2013-160 RC and 2014-111 RC, the ERC approved with modification PSALM’s petitions for the availment of the CYs 2011-2013 UC-SCC effective July 2017 billing period, amounting to Php 12.878 Billion, maintaining the PhP0.1938/kWh rate for ten (10) months. Accordingly, all Distribution Utilities (DUs) and the National Grid Corporation of the Philippines (NGCP) are directed by the ERC to collect the above UC-SCC charge starting July 2017 billing period.

      Further, below is the summary of PSALM's UC-SCC Availment Petitions before the ERC:
    • Period Covered Date Filed Amount
      (PhP Billion)
      Proposed Rate
      (PhP/kWh)
      Proposed Recovery Period Remarks
      CYs 2007-2010 UC-SCC
      Motion for Reconsideration
      ERC Case No. 2011-091 RC
      06 March 2013 8.55 0.0308 4 years
      • For ERC's Decision
      CY 2014 UC-SCC Availment
      ERC Case No. 2015-139 RC
      24 July 2015 7.35 0.0907 1 year
      • Awaiting ERC’s Notice of Public Hearings
      CY 2016 UC-SCC Availment
      ERC Case No. 2017-069 RC
      06 July 2017 3.68 0.0429 1 year
      • Awaiting ERC’s Notice of Public Hearings

      On 31 May 2016, PSALM submitted to the ERC as Compliance, a Report under Oath on the calculated CY 2015 UC-SCC in the amount of negative PhP0.43 Billion, including all the supporting data relevant to the calculations.