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Manila Bulletin devider Philippines devider National devider 'A big win for power consumers': Gatchalian hails ERC decision on NGCP's franchise tax

'A big win for power consumers': Gatchalian hails ERC decision on NGCP's franchise tax

Published Aug 11, 2023 04:27 am

Senator Sherwin Gatchalian on Friday, August 11, commended the Energy Regulatory Commission’s (ERC) decision to suspend the National Grid Corporation of the Philippines (NGCP) inclusion of a three percent (3%) franchise tax in its transmission costs billed to distribution utilities.

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Sen. Sherwin Gatchalian (Senate PRIB Photo)

“The ERC’s decisive move to halt the NGCP’s practice of charging electricity consumers with the 3% franchise tax it is supposed to pay the government is a big win for all power consumers,” Gatchalian said in a statement.


“The practice has unduly burdened consumers for many years now and I laud and fully support ERC for upholding consumer welfare in its decision,” the senator added.


Gatchalian also said such a move also serves a reminder for enterprises “to play fair and maintain corporate integrity.”


Once implemented, the decision would lower the price of electricity by about P0.0135 to P0.0165 per kilowatt hour based on power rates in the first six months of the year in the Meralco franchise.


The Senate Ways and Means chief noted this translates to a savings of P37.32 a year for households with average consumption of 200 kWh a month.


“I am confident that ERC will continue to thoroughly review industry practices with the goal of ensuring a balance of interests among stakeholders in the energy sector,” he said.


“I will continue to advocate for policies that would ensure the sufficiency and affordability of energy supply and promote the welfare of our consumers,” the lawmaker added.





Related Tags

Electricity Bills Sherwin Gatchalian Energy Regulatory Commission (ERC) National Grid Corp. of the Philippines (NGCP)
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