MANILA – The bicameral conference committee has approved the proposed Murang Kuryente law which reduces electricity rates by as much as P1 per kilowatt hour (kWh), Sen. Sherwin Gatchalian, author of the measure, said Thursday.
The bill would trim the universal charge by using part of the Malampaya fund to pay the debts incurred by the National Power Corporation (Napocor) and Power Sector Assets and Liabilities Management Corporation (Psalm).
The Murang Kuryente measure will specifically remove the Stranded Contract Cost (UC-SCC) and Stranded Debts (UC-SD) under the universal charge since the cost of these items will now be paid out of 60 to 70 percent of the P204 billion Malampaya fund—the gas money for the government sourced from payments of oil companies Caltex and Shell for extracting natural gas in Malampaya oil field in Palawan province.
“This would mean that for a household which consumes 200 kWh per month, makakatipid sila ng P170 per month which is worth four kilos of rice,” Gatchalian said after the approval of the measure on Thursday.
Gatchalian said the Malampaya natural gas plant is expected to earn P22 billion this year and again in 2020, which should just be enough to cover for the debts of Napocor and Psalm—which stands at P466 billion – on a staggered basis.
“The Malampaya fund is intact. Ang estimate namin, may P100 billion pa na matitira [after paying the debts of Napocor and Psalm). Besides, the last time the Malampaya fund was used, it was used for fertilizer fund, farm-to-market roads…projects which are not energy-related,” Gatchalian said.
“Masu-sustain natin ito,” he added.
According to Gatchalian, at least 16 million households will benefit from this law.
Likewise, the Murang Kuryente bill provides that the remainder of the Malampaya fund should be spent on energy-related projects.
The bill, however, would not be immediately ready for President Rodrigo Duterte’s signature into law since Congress cannot ratify the approved bicameral conference report since the Senate and the House of Representatives are not in session due to campaign period for the 2019 midterm polls. (GMA News)
