A consumer group has expressed its support for the immediate passage of twin power reform bills, saying it will have a positive impact on consumers’ electricity bills.
Senate Bills 3147 and 3148, authored by Senator Juan Ponce Enrile, aim to reduce electricity costs in the country by lowering the taxes levied to electric utilities and reducing the royalties collected by government from the development, exploration, and utilization of indigenous energy sources, respectively.
Experts say that electricity cost in the Philippines is one of the highest in Asia, second only to Japan.
“We support the twin bills’ passage. Mababawasan na ang binabayaran natin sa kuryente kapag naipasa ang panukalang ito (Electricity costs would be lower if these bills are passed),” said National Association of Electricity Consumers for Reform (Nasecore) President Pete Ilagan.
“The lower costs will be reflected in our monthly bills,” he added. According to Enrile, SB 3147 proposes a 3% franchise tax on distribution utilities’ gross distribution income in lieu of all national and local taxes. Consumers will no longer shoulder the burden of paying for additional pass on charges as a result of the imposition of value-added tax, corporate income tax and local franchise tax in the current system.
SB 3148, meanwhile, would reduce government royalties to lower electricity rates. With the passage of the two bills, consumers would be able to save “at least one peso per kilowatt-hour across the board, nationwide,” according to Enrile.
“Say, if a family consumes 200 kwh per month, that would translate to a savings of P200.00. It could mean at least 5 more kilos of rice, or at least 16 cans of sardines,” Enrile added.
“Sa ibang bansa, serbisyo publiko ang kuryente. Sa atin, hindi. Kaya pro-consumer itong mga bills na ito, (In other countries, electricity is a public service. This is not the case in the Philippines. So these bills are pro-consumer)” Ilagan added.
Enrile echoed Ilagan’s statements. According to the senator, “Allover the world, public utilities are never sources of revenue of government. Public service yon, serbisyo publiko, kaya kumokolekta siya ng buwis sa taong-bayan para you can perform that public service to the people. “
“The government now is treating distribution utilities as sellers of goods and piling up taxes on them. But they are not. The distribution utility should not be a major source of revenue for the government. The distribution of power is a public service because it is really the function of government to provide for this facility.”
Senator Enrile also welcomed the consumer group’s show of support, saying, “The show of support is a big boost for the passage of both bills. This shows that consumers are united in clamoring for lower electricity costs in the country.”
“I hope that these bills would be passed without any problems and before Congress goes into recess,” Enrile added.
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