MANILA – The House Committee on Energy approved on Tuesday a measure seeking to reduce electricity rates by paying the stranded debts and contract costs of state-owned National Power Corporation (NPC) that are being passed on to consumers.
The proposed measure will be discussed at the plenary, before going into a second reading and then third and final reading.
Under the proposed “Murang Kuryente” bill, the payment for the stranded debts of the NPC will come from the net national government’s share of the Malampaya fund amounting to P123 billion.
The Electric Power Industry Reform Act defines the stranded contract costs of NPC as “excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market.”
Consumers pay for the stranded cost under universal charges in their monthly electric bills.
EPIRA Law also defines stranded debts of NPC as “any unpaid financial obligations of NPC which have not been liquidated by the proceeds from the sales and privatization of NPC assets.”
The Power Sector Assets and Liabilities Management (PSALM) Corporation assumes all of the NPC’s obligations and stranded contract costs.
The measure authorizes PSALM to use P123 billion from the Malampaya fund and pay for NPC’s stranded debts until 2023.
1-CARE party-list representative Carlos Ramon Uybarreta, who presided over the energy panel meeting, said the use of Malampaya funds to cover National Power’s stranded debts may result in a P0.57 per kilowatt hour drop in electricity bills.
“If all goes well, the House can have the Murang Kuryente Act passed on second reading this week and third and final reading the following week before the House adjourns session on February 6,” he added. (GMA News)
