16 million
households stand to benefit from the bicameral conference committee-approved
“Murang Kuryente” bill according to Marinduque Rep. Lord Allan Velasco. This measure is envisioned to clear the huge
debts of the National Power Corporation (NPC) that is being charged to the
monthly electric bill of consumers.
Under the proposal, some P208 billion from the net
government share of the Malampaya fund will be allocated to cover payment for
the stranded contract costs and stranded debts of the NPC, and once
implemented, will translate to a savings of P172 per household who consumes an
average 200KwH per month, Velasco said.
“This will lighten the burden of Filipinos from the high
cost of electricity without hurting the government coffers,” said Velasco,
Chairman of the House Committee on Energy.
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| Rep. Carlos Roman Uybarreta and Rep. Velasco (above) are the principal authors of the House version, and Senators Ralph Recto and Sherwin Gatchalian in the Senate. |
Stranded contract costs refer to the excess of NPC.’s
contracted cost of electricity with independent power producers (IPPs) over the
actual selling of the output, while stranded debts refer to any unpaid
financial obligations which have not been liquidated by the proceeds from the
sales and privatization of former’s assets.
Payments for stranded contract costs and stranded debts are
covered through the universal charge, a pass-on rate to consumers that is also
used to finance missionary electrification and the environmental fund.
The bicameral conference committee version, Velasco said,
provides that the net government share of the Malampaya fund be transmitted to
a special trust fund that will be administered by the Power Sector Assets and
Liabilities Management (PSALM) Corporation.
“We would like to assure the public that the remaining
proceeds of the Malaypaya fund is protected and intact, and shall only be
utilized for energy development purposes only in accordance with the law,” added Velasco.
