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

The UC-SCC is for the payment of the excess of the contracted cost of electricity under NPC’s eligible contracts with Independent Power Producers (IPP) 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). The UC-SD, on the other hand, is for the payment of any unpaid NPC financial obligations which have not been liquidated by the proceeds from the sales and privatization of NPC assets.

  1. UC-ME and EC

    • PhP38.816 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.

UC-SCC and SD PSALM’s UC applications still pending with the ERC are as follows:

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Particulars/
ERC Case No.
Date Applied Period
Covered
Amount
(PhP Billion)
Proposed
Rate
(PhP/kWh)
Proposed
Recovery
Period
Remarks
UC-SCC
(Motion for Reconsideration)
/ERC Case No. 2011-091 RC
06 March 2013 CYs 2007-2010 8.55 0.0308 4 years
  • Awaiting ERC decision
UC-SCC
Availment/
/ERC Case No.
2013-160 RC
31 July 2013 CYs 2011-2012 17.69 0.1274 2 years
  • Jurisdictional Hearing was held on 11 November 2013
  • Expository Hearing was held 18 November 2013
  • Evidentiary Hearings were held on 07 January, 06 February, 26 August & 04 September 2014 and 11 August 2015
  • PSALM Submitted Formal Offer of Evidence (FOE) on 26 August 2015
  • On 15 June 2016, PSALM filed a Motion for Early Resolution
  • Awaiting ERC decision
UC-SCC
(Motion for Reconsideration)
/ERC Case No. 2014-111 RC
30 July 2014 CY 2013 4.08 0.0531 1 year
  • Jurisdictional and Expository Hearings were held on 16 September 2014
  • Supplementary Expository Presentation was held 02 October 2014
  • Pre-trial Conference was conducted on 16 October 2014
  • Pre-trial Conference and Evidentiary Hearing were conducted on 10 November 2014
  • Evidentiary Hearings were held on 30 July and 07 August 2015
  • PSALM Submitted FOE on 27 August 2015
  • On 15 June 2016, PSALM filed a Motion for Early Resolution
  • Awaiting ERC decision
UC-SCC
(Motion for Reconsideration)
/ERC Case No. 2015-139 RC
24 July 2015 CY 2014 7.35 0.0907 1 year
  • Awaiting ERC’s notice of public hearings
UC-SCC
(True-Up Adjustment)/
ERC Case No. 20-13-195 RC
30 Sept. 2013 CYs 2011-2012 41.14 0.0382 12.5 years
  • Jurisdictional and Expository Hearings were held on 19 March 2014
  • Pre –trial and Evidentiary Hearings were conducted on 01 April, 24 April, 07 May and 20 May 2014
  • PSALM Submitted FOE on 25 July 2014
  • Awaiting ERC decision
UC-SCC
(True-Up Adjustment)/
ERC Case No. 2015-144 RC
30 July 2015 CY 2014 1.35 0.0013 10.5 years
  • Jurisdictional and Expository Hearings were held on 05 October 2015
  • Pre-trial Conference and Evidentiary Hearing were conducted on 12 October 2015
  • Evidentiary Hearing was held on 20 October 2015
  • Awaiting submission of Manifestation from Intervenor Meralco
UC-SCC
(True-Up Adjustment)/
ERC Case No. 2016-150 RC
30 June 2016 CY 2015 27.67 0.0283 9.5 years
  • PSALM submitted the detailed Variance Analysis Report (VAR), duly audited by the Commission on Audit (COA) as evidenced by the Independent Auditor’s Reported dated 28 June 2016
  • Awaiting ERC decision
Total     PhP107.83      

    • On 31 May 2016, PSALM submitted to ERC a Report under Oath on the calculated NPC’s SCC portion for CY 2015 in the amount of negative PhP431.06 million, including all the supporting data relevant to the calculations.
    • PSALM submitted to ERC its compliance under the True-Up Adjustments for the NPC’s SCC Portion of the UC for CYs 2007-2010 on 31 May 2016 reporting an under recovery of PhP21.724 billion as of 31 December 2015 out of the PhP53.851 billion ERC-approved SCC.