Credit to Author: Tempo Desk| Date: Wed, 14 Aug 2019 08:52:27 +0000
A measure seeking to reduce electricity rates for consumers has been signed into law by President Duterte.
Republic Act No.11371 or the “Murang Kuryente Act” allows the use of government share from the Malampaya natural gas project to settle obligations of the National Power Corporation (NPC).
Prior to the passage of the law, these debts are charged to consumers through universal charge in their monthly electricity bill.
“It is hereby declared the policy of the State to protect public interest by ensuing the provision of reliable, secure and affordable supply of electric power to consumers,” the law read.
“The State shall implement policies and programs to ensure transparent and reasonable prices of electricity to consumers by minimising the universal charges for stranded contract costs and stranded debts,” it added.
Under the new law, R208 billion of the proceeds of the net government share from the Malampaya fund will be used for the payment of NPC’s stranded contract costs and stranded debts. If the obligations are fully paid before the funds are exhausted, the remainder of the amount will be used to finance energy resource development and exploration programs.
The law was signed by the President last Aug. 8.
Senator Sherwin Gatchalian, sponsor of the measure, earlier pushed for the passage of the Murang Kuryente bill, saying the use of Malampaya fund would help lower power costs.
Gatchalian said the implementation of the law would result in R172 monthly savings in household consuming 200 kilowatt hour per month. (Genalyn Kabiling)