State-run Power Sector Assets and Liabilities Management (PSALM) Corp. reduced its financial obligations to P260.6 billion as of end-December 2025, down 4.9 percent or P13.4 billion from P274 billion in 2024.
Despite the lower debt level, PSALM paid P20 billion in interest and other charges during the year and remitted P9 billion in dividends to the national government.
The improved financial position was driven by key transactions, including the P36.3 billion sale of the Caliraya, Botocan and Kalayaan hydroelectric power plants in Laguna. The agency also benefited from collections from transmission asset concessions, administration of power producer contracts, and the privatization of selected real estate assets.
PSALM recorded a 92.28 percent collection efficiency, equivalent to P15.88 billion in power sales collections.
Since its peak debt of P1.24 trillion in 2003, PSALM has reduced its obligations by 79 percent to P980 billion as of end-2025. The agency has generated P959.6 billion from privatization efforts, with P888.7 billion already collected. These proceeds have largely been used to pay down debt inherited from the National Power Corp.
PSALM was created to privatize government-owned power assets and use the proceeds to settle energy-sector debts. Lower debt levels help ease financial pressure on the power sector, which can support more stable electricity rates for consumers over the long term.
