The Department of Energy (DoE) has recommended the reduction of the lavish bonuses and allowances of officials of the state-run Power Sector Assets and Liabilities Corporation (PSALM) in line with the government’s austerity campaign, a Palace official said.

Secretary Herminio Coloma of the Communications Group said Energy Secretary Jose Rene Almendras has found the bonuses and other perks of PSALM executives and employees too exorbitant.

“Secretary Almendras has looked into this and his finding is that the bonuses and perks are quite high and should be revised to conform with new government's standards of good governance,” Coloma said in a text message.

Coloma, however, said Almendras has not yet determined if the questionable benefits enjoyed by PSALM officials were converted as part of the stranded costs of the National  Power Corporation (Napocor) that would be passed on to power consumers through higher rates. Concerned PSALM executives have been directed to explain the alleged excessive bonuses rewarded to personnel, he added.

“No finding yet that these are directly linked with increased power rates. Sec (Almendras) has asked officials to explain fully,” Coloma said.

Senator Ralph Recto earlier proposed a congressional inquiry into the series of power rate increases reportedly due to the fat bonuses, overtime pay, and consultancy fees of PSALM officials and personnel. Recto said over P217-million bonuses were supposedly converted as part of the ballooning debts of Napocor.

PSALM reportedly asked the Energy Regulatory Commission (ERC) to allow it to pass on to power consumers some P80.9 million “performance incentive” bonus that it gave to its employees.

Last week, Finance Secretary Cesar Purisima announced that they would soon come out with guidelines for the salaries and allowances of officials of government-owned and -controlled corporation and government financial institutions. The proposed salary cap for GOCC and GFI executives would soon be presented to the President for approval.

In his first State-of-the-Nation Address (SoNA), President Aquino bared the lavish perks and salaries of Metropolitan Waterworks and Sewerage System (MWSS) top executives.

He said these MWSS officials should step down out of delicadeza due to their excessive salaries while pension benefits for employees remain unpaid.