Consumers soon to have cheaper electricity –Gatchalian

Published November 24, 2019, 11:05 AM

by Gabriela Baron & Minka Klaudia Tiangco

By Hannah Torregoza

Power consumers may soon find relief once the implementing rules and regulations of the “Murang Kuryente Act” are finished.

Sen. Sherwin T. Gatchalian (Senate of the Philippines / MANILA BULLETIN)
Sen. Sherwin T. Gatchalian
(SENATE OF THE PHILIPPINES / MANILA BULLETIN FILE PHOTO)

Senator Sherwin Gatchalian said this as he expects the government to implement the law soon following reports the Department of Energy (DOE) has released the draft of the law’s IRR.

The “Murang Kuryente” Act primarily aims to lower consumers’ electricity rates and to lift the burden of every household of having to pay additional costs in their electricity bill.

Under the law, a portion of the national government’s share of the proceeds from the Malampaya Natural Gas Project will be used to pay for two items being paid by electricity users—the Universal Charge for Stranded Debts (UCSD) and Universal Charge for Stranded Contract Costs (UCSCC).

Gatchalian, chair of the Senate committee on energy and co-author of the law, explained that the law aims to lessen each Filipino household burden, noting how they are currently paying P0.09 per kilowatt hour for UCSD and UCSCC in their electricity bill.

On top of this, he said, consumers are expected to pay an additional P0.86 per kilowatt hour for UCSCC and UCSD.

But with the enactment of the Murang Kuryente Act, consumers will no longer pay the additional cost.

“Those consuming 200 kwh per month can save Php 172 per month or Php 2,064 per year,” Gatchalian said.

“Ang savings na ito ay pwede nang idagdag upang maipambili ng karagdagang tatlo o apat na kilo ng bigas kada buwan o di kaya ay isang sako ng bigas kada taon (They can use this savings to add to their budget to buy additional three to four kilos of rice every month or one sack of rice every year),” Gatchalian said.

Gatchalian also said consumers can expect that rates for the UCSD and SCC would no longer increase starting December.

“Makakaasa ang ating mga kababayan na simula Disyembre ay hindi na tataas ang UCSD at SCC na nakapaloob sa bill ng kuryente nila. (Our citizens can expect that starting in December, the UCSD and SCC included in their electricity bill will decrease,” he stressed.

According to Gatchian, stranded contract costs or SCCs are excess of the contracted cost of electricity under independent power producer contracts over the actual selling price of the contracted energy output.

On the other hand, stranded debts refer to any unpaid financial obligations of the National Power Corporation (NPC) which have not been liquidated by the proceeds from the sales and privatization of NPC assets.

“Tututukan natin ito lalo na’t matagal-tagal na ring pinapasan ng mga Pilipino ang utang ng NPC, (We will follow up on this especially since it has been a long time that Filipinos are paying for Napocor’s debt,” Gatchalian stressed.

President Duterte had signed the measure into law last August. Lawmakers believe that the law is one way to make electricity more affordable in the country.

 
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Consumers soon to have cheaper electricity –Gatchalian

Published November 24, 2019, 12:00 AM

by manilabulletin_admin

By Hannah Torregoza

Power consumers may soon find relief once the implementing rules and regulations of the “Murang Kuryente Act” are finished.

Sen. Sherwin T. Gatchalian (Senate of the Philippines / MANILA BULLETIN)
Sen. Sherwin T. Gatchalian
(SENATE OF THE PHILIPPINES / MANILA BULLETIN FILE PHOTO)

Senator Sherwin Gatchalian said this as he expects the government to implement the law soon following reports the Department of Energy (DOE) has released the draft of the law’s IRR.

The “Murang Kuryente” Act primarily aims to lower consumers’ electricity rates and to lift the burden of every household of having to pay additional costs in their electricity bill.

Under the law, a portion of the national government’s share of the proceeds from the Malampaya Natural Gas Project will be used to pay for two items being paid by electricity users—the Universal Charge for Stranded Debts (UCSD) and Universal Charge for Stranded Contract Costs (UCSCC).

Gatchalian, chair of the Senate committee on energy and co-author of the law, explained that the law aims to lessen each Filipino household burden, noting how they are currently paying P0.09 per kilowatt hour for UCSD and UCSCC in their electricity bill.

On top of this, he said, consumers are expected to pay an additional P0.86 per kilowatt hour for UCSCC and UCSD.

But with the enactment of the Murang Kuryente Act, consumers will no longer pay the additional cost.

“Those consuming 200 kwh per month can save Php 172 per month or Php 2,064 per year,” Gatchalian said.

“Ang savings na ito ay pwede nang idagdag upang maipambili ng karagdagang tatlo o apat na kilo ng bigas kada buwan o di kaya ay isang sako ng bigas kada taon (They can use this savings to add to their budget to buy additional three to four kilos of rice every month or one sack of rice every year),” Gatchalian said.

Gatchalian also said consumers can expect that rates for the UCSD and SCC would no longer increase starting December.

“Makakaasa ang ating mga kababayan na simula Disyembre ay hindi na tataas ang UCSD at SCC na nakapaloob sa bill ng kuryente nila. (Our citizens can expect that starting in December, the UCSD and SCC included in their electricity bill will decrease,” he stressed.

According to Gatchian, stranded contract costs or SCCs are excess of the contracted cost of electricity under independent power producer contracts over the actual selling price of the contracted energy output.

On the other hand, stranded debts refer to any unpaid financial obligations of the National Power Corporation (NPC) which have not been liquidated by the proceeds from the sales and privatization of NPC assets.

“Tututukan natin ito lalo na’t matagal-tagal na ring pinapasan ng mga Pilipino ang utang ng NPC, (We will follow up on this especially since it has been a long time that Filipinos are paying for Napocor’s debt,” Gatchalian stressed.

President Duterte had signed the measure into law last August. Lawmakers believe that the law is one way to make electricity more affordable in the country.

 
CLICK HERE TO SIGN-UP
 

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