MANILA — The House of Representatives’ Committee on Energy approved on first reading Tuesday a bill seeking to reduce electricity rates by allocating a subsidy from the Malampaya Fund to pay the stranded contract costs and stranded debts of the National Power Corp. (NPC).
The proposed “Murang Kuryente Act,” which was principally authored by House energy panel chair, Lord Allan Velasco, and 1-CARE Party-list Rep. Carlos Ramon Uybarreta, consolidates House Bill Nos. 8082, 8327, and 8352.
Under the bill, the payment for NPC’s stranded debts will come from the national government’s net share from the Malampaya Natural Gas Project amounting to PHP123 billion.
The Electric Power Industry Reform Act (EPIRA) defines stranded contract costs of NPC as the “excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market.”
The stranded cost is passed on to consumers as part of the universal charges in electricity billings.
The same law also defines stranded debts of NPC as “any unpaid financial obligations of NPC which have not been liquidated by the proceeds from the sales and privatization of NPC assets.”
Uybarreta said once enacted into law, the Murang Kuryente Act could result in a drop of about PHP0.57 per kilowatt hour in electricity billings.
“If all goes well, the House can have the Murang Kuryente Act passed on second reading this week and third and final reading the following week before House adjourns session on February 6,” Uybarreta said.