Senate Deputy Minority Leader Senator Risa Hontiveros on Monday, August 14 said the Energy Regulatory Commission (ERC) should look into the National Grid Corporation of the Philippines’ (NGCP) account books and check whether it is correct to impose only a three percent franchise tax from the transmission utility.

Sen. Risa Hontiveros (Senate PRIB Photo)

Hontiveros pointed this out even as she lauded the ERC’s decision to finally suspend Resolution No. 07, Series of 2011, that passes on to consumers the franchise tax that should solely be paid by NGCP.

“Patuloy din sanang makipagtulungan ang ERC sa Senado sa pagbusisi kung tama bang 3 percent franchise tax lang ang ipataw sa NGCP (The ERC should continue to cooperate with the Senate in investigating whether it is correct to impose only a 3 (three) percent franchise tax on the NGCP),” Hontiveros said in a statement.

“Hindi rin dapat hayaan na exempted ito sa pagbabayad ng iba pang mga buwis gaya ng corporate income tax habang maagap na nagbabayad ang ating mga kababayan ng kanilang mga buwis (Nor should it be allowed to be exempted from paying other taxes such as corporate income tax while our citizens pay their taxes promptly),” the senator added.

But as far as she is concerned, the ERC’s latest action, is a step in the right direction towards combating high power costs.

The senator also noted that the decision sheds light on the oft-repeated question of whether these taxes can be passed on to consumers, after the Supreme Court (SC) ruled its unconstitutionality as in the case of Meralco.

“Napatunayang hindi tama na sinisingil ang mga buwis na ito sa mga konsyumer (It turned out that these taxes were incorrectly charged to consumers),” Hontiveros pointed out.

“Bawat hakbang upang ituwid ang mga kapalpakan ng lumang ERC ay pag-asa para mabago ang maling mga patakaran na nagpapabigat lang lalo sa pasanin ng mga konsyumer (Every step to correct the mistakes of the old ERC is a hope to change the wrong policies that only further burdened consumers),” she stressed.

Nevertheless, Hontiveros said she still hopes that reforms in the energy sector will continue to ensure that consumers will have benefit from a lower and affordable electricity bill.

“Isa na rito ang labis-labis na (One of this is the excessive) weighted average cost of capital (WACC),” she said.

The ERC, she said, should also scrutinize NGCP’s expenses on advertisement, entertainment and public relations which amounts to more than P1.12-billion.

“Hindi rin dapat hayaan na ipasa ang kontrobersyal na advertisement fees, entertainment expenses at iba pang walang direktang kinalaman sa serbisyong binabayaran sa kanila (the controversial advertisement fees, entertainment expenses and others not directly related to the service paid to them should also be scrutinized),” the lawmaker stressed.