Napocor pushes for Epira amendments

THE National Power Corporation is pushing for amendments to the Electric Power Industry Reform Act (Epira) of 2001, particularly on the use and disbursement of the universal charge-environmental charge (UC-EC) component.

Section 34 of Republic Act 9136 (Epira) provides that a UC to be determined, fixed and approved by the Energy Regulatory Commission shall be imposed on all electricity end-users to pay for the stranded debts in excess of the amount assumed by the National Government and stranded contract costs of the Napocor as well as qualified stranded contract costs of distribution utilities resulting from the restructuring of the industry.

For missionary electrification, the equalization of the taxes and royalties applied to indigenous or renewable sources of energy vis-à-vis imported energy fuels; an environmental charge equivalent to one fourth of one centavo per kilowatt-hour (PhP0.0025/kWh) to be used solely for watershed rehabilitation and management; and a charge to account for all forms of cross-subsidies for a period not exceeding three years.

Article III of the proposed disbursement of UC-EC and the application of Special Environmental Fund Account (Sefa), a copy of which was furnished Sun.Star Bacolod the other day, stressed that releases of the UC-EC fund from the Power Sector Assets and Liabilities Management Corporation (Psalm), savings generated out of bidding such as proceeds from the sale of tender documents and forfeiture of performance bonds, excess monies from completed projects and accrued interest on monies in Sefa shall form part of the Fund Account.

Sefa refers to an interest-bearing current account opened by Napocor with the Land Bank of the Philippines for the transfer/remittance of UC from the Power Sector Assets and Liabilities Management (Psalm) for watershed rehabilitation and management of the Environmental Fund.

“Approved funding for deferred and cancelled projects should not form part of the savings and that the implementation of deferred projects may still be continued,” the proposed amendments stated. “Approved funding for cancelled projects should be applied to future petitions for availments from the UC-EC.”

Savings identified as well as accrued interest on monies shall be utilized for the restoration of damaged projects due to force majeure and fortuitous events; and additional funding for the resumption of deferred projects due to failed bidding or cost overruns, the proposal added. (CGC)

Published in the Sun.Star Bacolod newspaper on June 10, 2011.