THE House Committee on Energy approved on Tuesday a consolidated bill that would reduce power costs in the country by at least 57 centavos per kilowatt-hour (kWh) by using Malampaya funds to subsidize the National Power Corp.’s (NPC) stranded debts contract costs of electricity.
Party-list Rep. Carlos Roman L. Uybarreta of 1-CARE, vice chairman of the House Committee on Energy, said he expects the House of Representatives to pass the consolidated bill, dubbed as the Murang Kuryente Act, on its third and final reading before Congress adjourns session.
Congress is set to take a break starting February 6 to pave the way for the midterm senatorial election.
“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 the House adjourns on Wednesday, February 6,” Uybarreta said in a statement.
The technical working group, headed by House Energy Committee Chairman Lord Allan Jay Q. Velasco, consolidated three bills—House Bill 8082, HB 8327 and HB 8352—presented during the panel’s January 22 meeting.
Uybarreta and Velasco are principal authors of HB 8082, known as Murang Kuryente Act. Uybarreta told the committee hearing that members of the energy sectors have given their support for the measure.
“There could be a 57-centavo-per-kWh cut in electricity billings when the Malampaya subsidy becomes effective. The technical working group has completed its task; the House Energy Committee unanimously approved it,” he said in a statement.
Under the Electricity Power Industry Reform Act of 2001, or the Epira law, “stranded contract costs of NPC or distribution utility” refer to 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 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.”
In electricity billings, the stranded cost is part of the universal charges, Uybarreta said.