THE ENERGY Regulatory Commission’s (ERC) decision to bar the National Grid Corp. of the Philippines (NGCP) from passing on its franchise tax to consumers would help ease the burden of high power costs, Senator Ana Theresia “Risa” Hontiveros-Baraquel said on Monday.
“The decision also sheds light on the oft-repeated question of whether these taxes can be passed on to consumers and it was proven that it is not right to pass these taxes on consumers,” she said in a statement, citing jurisprudence.
Last week, the ERC said the suspension of NGCP’s 3% franchise tax would cut power costs by one centavo per kilowatt-hour.
The franchise tax should no longer be passed on to consumers in the next billing month, it said. In 2011, the commission issued an order approving the inclusion of a 3% national franchise tax billed by NGCP as part of the monthly transmission cost.
“There is a definite need for reforms in the energy sector in order to bring down the prices of electricity,” Ms. Hontiveros-Baraquel said. — John Victor D. Ordoñez
