THE Department of Energy (DoE) has directed all distribution utilities to require their power suppliers to explain any additional charges that may arise from the tax reform program, in effect since the start of the year.

“This includes the explanation on the implementation of excise taxes vis-a-vis the minimum inventory requirement for both coal stocks and diesel stocks,” DoE Secretary Alfonso G. Cusi said in a statement on Thursday.

Under Republic Act 10963 or Tax Reform for Acceleration and Inclusion (TRAIN) Act, the excise tax on coal is to be increased from P10 per metric ton to P100 in the first year, P200 in the second and P300 in succeeding years.

The DoE said the secretary had called for a meeting with distribution utilities to discuss “the effective and appropriate” implementation of the power-related provisions of the TRAIN law.

It said the major items that were discussed were the price adjustments coming from the value-added tax (VAT) on the transmission sector; the VAT on cooperatives registered with the Cooperative Development Authority (CDA); and the excise tax on coal and diesel that are used to run power plants.

The DoE has also met with representatives from the Department of Finance, Energy Regulatory Commission, National Electrification Authority, National Power Corp., Philippine Electricity Market Corp., Philippine Rural Electric Cooperatives Association, Inc., Manila Electric Co. and Pangasinan Electric Cooperative I, which is a CDA-registered electric cooperative.

In its meetings with stakeholders, the DoE said it aims to clarify the salient provisions of the TRAIN implementation in the sector and to gather feedback on issues and concerns on the first package of the Duterte administration’s tax law.

The Energy and Finance departments agreed on the next steps to address the concerns of the energy stakeholders and the protection of energy consumers.

Mr. Cusi said the “ultimate objective” of the TRAIN law of “consumption-to-investment, better infrastructure and social services for the people will be achieved with this strong collaboration” between the two departments. — Victor V. Saulon

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