Meralco seeks ERC approval to include local franchise tax in Biñan customers’ bills

Manila Electric Co. (Meralco) has asked the Energy Regulatory Commission (ERC) to implement the new local franchise tax rate imposed by Biñan City in Laguna province ahead of its inclusion in the customer’s retail rates.
Meralco said the city government had imposed a tax on business enjoying a franchise at a rate of 50% of 1% of the gross annual receipts, which include both cash sales and sales on account realized during the preceding calendar year within Binan.
The distribution utility is also asking that it be able to recover the differential local franchise tax for 2017 from customers in the said city.
Meralco has a legislative franchise to operate and maintain a distribution system in the cities and municipalities of Metro Manila, Bulacan, Cavite and Rizal, and certain cities, municipalities and barangays in Batangas, Quezon, Pampanga and Laguna.
As such it is authorized to charge all its customers for their electric consumption at the rates approved by the ERC. — Victor V. Saulon