Bills that seek to lower power rates approved
Credit to Author: GLEE JALEA| Date: Mon, 04 Feb 2019 18:09:23 +0000
THE Senate and the House of Representatives approved on third and final reading on Monday consolidated measures that will seek to allocate the Malampaya fund to the payment of stranded debts of the National Power Corporation (Napocor) to reduce electricity rates.
With 171 affirmative and 6 negative votes, members of the House of Representatives passed on third and final reading House Bill (HB) 8969 or the “Murang Kuryente Bill.” The measure aims to remit the net national government share from the Malampaya fund to a special trust fund through the annual General Appropriations Act (GAA).
Under HB 8969, a portion of all the proceeds of the net national government share from the fund amounting to P123 billion out of the total P204 billion will be collected for the payment of the Stranded Contract Costs and Stranded Debts which will be administered by the Power Sector Assets and Liabilities Management Corporation (PSALM).
The PSALM will utilize the P123 billion up to 2023 to settle its obligations.
“For a number of years, no one has used the Malampaya fund…, now we’re using it specifically for an energy-related purpose so that the consumers won’t be burdened anymore,” said Marinduque Rep. Lord Allan Jay Velasco, chairman of the House energy panel.
1-Care party-list Rep. Ramon Uybarreta, one of the authors of the measure, said once the House version of the Malampaya subsidy takes effect, power rates may be reduced by 57 centavo per kilowatts per hour (kwh), which is equivalent to P115-P120 savings per month for a household that consumes around 200 kwh.
Also on Monday, the Senate passed its counterpart measure authored by Sen. Ralph Recto, Senate Bill 1950, which aims to “lower electricity rates and provide significant consumer savings for Filipinos.”
The Malampaya gas field project was created by Shell Philippines Exploration B.V. through a joint venture with Chevron Malampaya LLC and the Philippine National Oil Exploration Corp.
Touted as “one of the largest and most significant industrial endeavors in Philippine history,” the project aimed to reduce the country’s dependence on imported fuel for its domestic and industrial power needs.
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