Low power rates seen as Senate passes Murang Kuryente bill

Published February 9, 2019, 12:05 AM By Mario Casayuran

https://news.mb.com.ph/2019/02/09/low-power-rates-seen-as-senate-passes-murang-kuryente-bill/

The Senate has approved on third and final reading a bill authorizing the use of the P207-billion Malampaya Fund to pay off the stranded contract costs and stranded debt of the State-owned National Power Corporation (Napocor).

The P207-billion fund which was initially intended to fund the explora­tion, development, and exploitation of energy resources, has remained largely unused since 2001. The measure was passed before lawmakers go on a three-month midterm election recess starting today.

With the approval of Senate Bill1950 (SB 1950), or the Murang Kury­ente Act, Senator Sherwin T. Gatchalian said that Filipino consum­ers move much closer toward attaining lower electricity rates and, at the same time, providing them with significant savings.

Gatchalian who is chairman of the Senate energy committee sponsored the bill. Senate President Pro Tempore Ralph G. Recto is the author of the bill.

“The approval of Murang Kuryente Act in the Senate is a victory for power consumers, who have long been made to share the burden of paying Napocor’s debts through the universal charge for stranded debts and stranded contract costs incorporated in the monthly elec­tricity bill,” he said.

“It is high time for the Filipino people to receive tangible benefits from the Malampaya Fund. With the approval of this measure, the government share re­alized from the Malampaya Natural Gas Project will end up lowering retail power rates for millions of consumers across the country,” he said.

Savings

The Murang Kuryente Act seeks to use the Malampaya Fund – accrued from the net profit share earned by the government from the operation of the Malampaya Natural Gas Project in the West Philippine Sea (WPS) – for the pay­ment of Napocor’s stranded contract costs and stranded debts.

Gatchalian asserted the bill would help lower electricity rates and provide significant consumer savings for Fili­pinos.

For a household consuming 200 kilo­watt hours per month, Gatchalian said this would result in savings of P169.48 per month or P2,033.76 per year. Households can use the P169.48 savings to buy addi­tional two to three kilos of rice per month or roughly a sack of rice per year.

He allayed fears of fund disburse­ment abuses should the bill be approved because of several safeguards.

Gatchalian explained the Power Sector Assets and Liabilities Manage­ment Corporation (PSALM) may only tap the fund after it has already applied the collections from its different sources of revenue.

He said the funds to be used for the power debt payment servicing would be allocated through the General Appro­priations Act (GAA or national budget).