Senator Raffy Tulfo (Senate PRIB)

Senator Raffy Tulfo hailed on Saturday, Aug. 12, the Energy Regulatory Commission (ERC) for heeding his call to suspend the three percent National Grid Corp. of the Philippines (NGCP) franchise tax being passed on to consumers.

In a Special Commission Meeting on Aug. 8, The ERC decided to suspend its Resolution No. 07, S. 2011, which allowed the NGCP to pass on its three percent franchise tax to energy consumers. 

This was an offshoot from the request and recommendation of Tulfo, chairman of the Senate Committee on Energy, during a public hearing on July 12, for ERC to revisit its Resolution No. 07 and stop NGCP from passing on its franchise tax to consumers.

ERC promised to look into it after the hearing.

Since 2011, NGCP has been charging a three precent franchise tax, which it is mandated to pay under its charter, to distribution utilities (DUs) that subsequently passed the levy on to consumers.

Tulfo thanked ERC for listening to and heeding his request to reverse this NGCP franchise tax resolution, which, as a result, would lower the monthly electricity bills of consumers.

According to ERC, the suspension of three percent pass-on tax would translate to “around one centavo per kilowatt-hour” reduction in the monthly bill of consumers.

Tulfo likewise urged ERC to immediately and effectively implement the said resolution.

Earlier, Tulfo also said that ERC should consider imposing a regular income tax of 30 percent to NGCP.