An estimated 16 million households stand to benefit from the bicameral conference committee-approved “Murang Kuryente” bill, a measure which is envisioned to clear the huge debts of the National Power Corp. that is being charged to the monthly electric bill of consumers, a House official said on Saturday.
Under the proposal, some P208 billion from the net government share of the Malampaya fund will be allocated to cover payment for the stranded contract costs and stranded debts of the NPC, said Marinduque Rep. Lord Allan Velasco, the chairman of the House Committee on Energy.
Once implemented, Velasco said it will translate to a savings of P172 per household that consumes an average 200KwH per month.
“This will lighten the burden of Filipinos from the high cost of electricity without hurting the government coffers,” he said.
Stranded contract costs refer to the excess of NPC’s contracted cost of electricity with independent power producers over the actual selling of the output, while stranded debts refer to any unpaid financial obligations which have not been liquidated by the proceeds from the sales and privatization of NPC assets.
Payments for stranded contract costs and stranded debts are covered through the universal charge, a pass-on rate to consumers that is also used to finance missionary electrification and the environmental fund.
The bicameral conference committee version, Velasco said, provides that the net government share of the Malampaya fund be transmitted to a special trust fund that will be administered by the Power Sector Assets and Liabilities Management Corp.
“We would like to assure the public that the remaining proceeds of the Malampaya fund is protected and intact, and shall only be utilized for energy development purposes only in accordance with the law,” said Velasco.
