THE Murang Kuryente Bill, which will settle the National Power Corp.’s (NPC) obligations by tapping the P208-billion net national government share in the Malampaya fund, is expected for ratification when the congressional session resumes in May.
“I hope President Duterte will sign this landmark bill immediately for the Filipino people to finally receive tangible benefits from the Malampaya Fund as soon as possible,” Senator Sherwin T. Gatchalian, chair of the energy committee, was quoted as saying in a statement on Monday.
The Bill is expected to generate P172 in monthly savings per household for those consuming 200 kilowatt-hours (kWh) on average. The measure hurdled the Bicameral Conference Committee on March 7.
The House of Representatives and the Senate are currently in recess until May 19 for the midterm elections. Session will resume on May 20-June 7, leaving legislators three weeks of work before the 17th Congress concludes.
If signed into law, the measure will utilize the P208-billion government share in the Malampaya Natural Gas Project to cover NPC’s stranded contract costs and stranded debts. These are currently passed on to consumers through the universal charge.
Further, Mr. Gatchalian said NPC’s obligations will likely reduce power rates more than expanding coverage and increasing subsidies to certain households, through so-called lifeline rates.
The lifeline rate is a subsidy granted to those whose power consumption is less than 100 kWh per month.
“Based on our internal research, we determined that increasing subsidies and expanding the coverage of lifeline rates with the use of the net profit share earned by the government from the operation of the Malampaya Natural Gas Project will have little impact on the average household,” Mr. Gatchalian said.
He noted that should the Malampaya fund be utilized for the lifeline rates, an average of 200 kWh monthly consumption will only generate a total of P21.54 savings. — Charmaine A. Tadalan
