Monday, January 21, 2019

Malampaya Fund bills due before energy panel



January 20, 2019 | 11:14 pm

THE House Committee on Energy will continue on Tuesday deliberations on the draft Substitute Bill proposing to use the Malampaya fund to pay for the National Power Corporation’s (NPC) Stranded Contract Costs (SCC) and Stranded Debt.
The draft Substitute Bill consolidated House Bills No. 8082, 8327 and 8352, which intends to minimize the universal charge, thereby reducing electricity rates. The universal charge is an imposition passed on to consumers to cover for NPC’s obligations.
The bills propose that the proceeds of the Net National Government share from the Malampaya fund will be remitted to a Special Trust Fund.
The fund will be managed by the Power Sector Assets and Liabilities Management Corp. (PSALM), which assumed all obligations of the NPC.
HBs 8082 and 8327 provided that once the SCC and SD have been paid in full before the end of PSALM’s corporate life, the “Net National Government Share, shall accrue back to the Special Fund used to finance energy resource development and exploitation programs.”
The fund was created under Presidential Decree No. 910, which created the Energy Development Board.
House Bill No. 8352, written by Magdalo Rep. Gary C. Alejano, proposes instead that the funds accrue to the National Treasury.
Meanwhile, its counterpart measure, Senate Bill No. 924, written by Senator Sherwin T. Gatchalian, has been introduced to the plenary for second reading. — Charmaine A. Tadalan

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