Manila: The corporate life of the Power Sector Assets and Liabilities Management (PSALM) Corporation has been extended for another 10 years through Republic Act (RA) 12179. This extension comes as the law lapsed into effect on April 18 without President Ferdinand R. Marcos Jr.'s signature.

According to Philippines News Agency, a measure becomes law if the President does not take action, either by signing or vetoing, within 30 days. RA 12179 amends Section 50 of RA 9136, also known as the Electric Power Industry Reform Act (EPIRA) of 2001, allowing PSALM Corporation to continue its operations beyond its original expiration date of June 26, 2026.

PSALM was established under EPIRA with the primary mandate to manage the orderly sale, disposition, and privatization of the National Power Corporation's (NPC) generation assets, real estate, other disposable assets, and Independent Power Producer (IPP) contracts. The goal is to optimally liquidate all NPC financial obligations, which include stranded debts and stranded contract costs transferred to PSALM under EPIRA.

Upon the end of PSALM's extended life, all assets, outstanding debts, and IPP contract costs will revert to and be assumed by the national government. The new law states, "The PSALM Corp. shall continue to exist for a period of 10 years from the expiration of its original term on June 26, 2026. All assets held by it, all moneys and properties belonging to it, and all its liabilities outstanding upon the expiration of its term of existence shall revert to and be assumed by the National Government."

Furthermore, PSALM will be prohibited from collecting or charging consumers for stranded costs and stranded debts during its extended corporate life unless otherwise approved by the Energy Regulatory Commission before the law's passage. RA 12179, which was publicly announced on Friday, will take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.