The Department of Energy (DoE) has already started probing the P471-billion debt recovery bid of the Power Sector Assets and Liabilities Management Corporation (PSALM) – which translates to passing on to all electricity consumers its debt via the universal charge component in the power bills payable in 17 years.

Energy Secretary Jose Rene D. Almendras revealed this on Tuesday, saying the move is in the spirit of “good housekeeping” and adhering to the corrupt-free government promised by President Benigno Simeon Aquino III.

Almendras bared that the Aquino administration is now seeking a competent replacement for acting PSALM President Maria Luz L. Caminero, “there’s a need for new PSALM president as she only acts as officer-in-charge.”

Almendras said the DoE already has a shortlist for the potential replacement.

Apart from PSALM’s stranded debt recoveries which integrated performance incentives or bonuses in its proposed rates pass-on, Almendras noted that he is expanding his review into all other leakages in government-owned and controlled corporations (GOCCs) under the Department of Energy’s (DoE) charge, such as the Philippine National Oil Company (PNOC) and National Power Corporation (NPC), among others.

“Very greatly yes, I would feel very bad if my great granddaughter will still have to pay a P0.50 per (kilowatt hour) universal charge because of the inefficiencies and leakages,” Almendras noted on media’s persistent queries about investigation on PSALM’s mounting indebtedness that it plans to pass on as burden to the Filipino people.

Almendras emphasized that while President Aquino only cited the bonuses of Metropolitan Waterworks and Sewerage System (MWSS) – that “shocker” in the State of the Nation Address was actually used as an opening for all the other government agencies to look at cases that resemble such.

While giving bonuses may have been based on legal parameters, what policymakers and legislators view as downright illegal in PSALM’s case is passing on these cost components to be part of the rates to be reflected in the electric bills, more so, to integrate them as part of the mounting stranded debt recoveries of the company that may stretch for 17 years.

“It’s not necessarily about legal things but the moral aspect of it, that’s why we’re reviewing it, that’s why we need to study the compensation structures,” the Energy secretary further pointed out.

Almendras emphasized that the newly-constituted PSALM board will be reviewing the liability management adhered to by PSALM, and find a way if there are still some parameters on how to reduce the cost level that will be passed on as universal charge.

“We will be reviewing the liabilities management strategy. I am also sure that (the) PSALM’s chair will also want to review the best possible financial structures,” Almendras averred. The PSALM board is chaired by Finance Secretary Cesar Purisima.

The scale of debts that PSALM filed with the Energy Regulatory Commission, is considered to be a direct assault on consumers, hence, investigations on the matter have already been proposed at the House Committee on Energy.

When the Electric Power Industry Reform Act (EPIRA) was crafted, the intent of the policy advocates would be to free up state-run NPC from colossal borrowings. Nevertheless, its successor-company PSALM appeared to have been saddled with more humungous debts, totaling $8 billion even if it already privatized most of NPC’s power assets and contracts, plus it keeps borrowing to refinance maturing obligations.

Beyond scrutinizing the liabilities management employed by PSALM, the energy chief also indicated plans of reviewing the privatization of power assets to gauge the success and uncover if some “mistakes”, intended or not, have been committed in the process.

“The board may also opt to review some of the assets sale to seek learnings so the same mistakes can be avoided,” he stressed.

However, for the deals that have already been concluded with the buyers or the independent power producer (IPP) contract administrators, the energy chief noted that the recourse of the Aquino administration will be “to consider the legal options available to us if we do find anything worth pursuing.”

Almendras albeit vowed that they will exercise caution in looking at these deals noting the President’s instruction “that we must abide by the laws otherwise we will just be as bad even if the objective is good.”