The Power Sector Assets and Liabilities Management (PSALM) Corporation has significantly reduced its 2024 Real Property Tax (RPT) liabilities for five Build-Operate-Transfer (BOT) power plants, saving PHP 509.94 million.
This reduction was made possible through Executive Order (EO) No. 83, issued on February 13, 2025. The EO reduces and condones RPT liabilities, including interests and penalties, for power generation facilities and independent power producers (IPPs) operating under BOT contracts with government-owned corporations.
The total RPT liabilities were slashed from PHP 626.46 million to PHP 116.52 million. The EO sets the 2024 RPT assessment level at 15% of the fair market value of assets, depreciated at 2% annually, minus any payments already made by IPPs.
PSALM President and CEO Dennis Edward A. Dela Serna emphasized the importance of this relief in managing financial obligations.
“The reduction and condonation of RPT liabilities under EO No. 83 provide much-needed financial relief to PSALM and our partner IPPs,” said Dela Serna. “This allows us to manage our obligations more effectively while ensuring the continuous and stable supply of electricity.”
Since 2011, similar executive orders have been issued annually to ease the tax burden on power facilities. While IPPs are technically responsible for RPT, the obligations are ultimately shouldered by PSALM and the National Power Corporation.
The financial relief granted by EO No. 83 enables PSALM to focus on its mandate of managing the country’s power assets and liabilities while ensuring reliable electricity supply for the nation.
