Monday, April 23, 2012

Govt releases funds to cut power rates

Monday, 23 April, 2012 Written by Joyce Pangco Panares


THE Aquino administration has released P767.2 million to local government units as part of their 40-percent share of energy revenue collections, Budget Secretary Florencio Abad said Monday.
He said the amount will be used to help cut energy costs and bring down the high electricity rates in several regions.
The fund came from the revenues generated from the coal, petroleum, geothermal, and hydrothermal operations in the local government units’ localities in 2011. It was charged against the P2.45 billion allocation for LGUs as special shares in the proceeds of national taxes, of which P1.8 billion has been devoted to programmed expenditures for energy resources.
“The P767.2-million fund release will not only allow LGUs to fulfill their role in implementing critical programs and projects in their own communities, it will also give local governments enough legroom to lower the cost of electricity across their localities,” Abad said.
“This is particularly timely, given that energy usage tends to spike during the summer.”
Section 294 of the Local Government Code says at least 80 percent of the proceeds from the development and use of energy sources should be used solely to lower the cost of electricity in local government units.
The remaining 20 percent may be used to support local development and livelihood initiatives in localities covered by beneficiaries.
“The Aquino administration is committed to seeking viable solutions to energy issues in the country,” Abad said.
“We trust that this release will empower our LGUs and allow them to manage electricity costs in their assigned localities, and in the end bring direct, immediate, and sustainable benefits to the communities they serve.”
(Published in the Manila Standard Today newspaper on /2012/April/24)

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