As the Anti-Powerlines Disturbance Bill advances to Senate second reading for plenary deliberation in January 2019, the House energy committee tackles in the same month the draft consolidated bill authorizing the Malampaya Fund subsidy of the NPC stranded debts and stranded contract costs of electricity.
“There could be a 60 to 80-centavo cut in electricity billings when the Malampaya subsidy becomes effective. The technical working group has completed its task, so the House energy can work on the draft as early as next month when Congress resumes session next month,” said 1-CARE Partylist Rep. Carlos Roma Uybarreta said.
The TWG consolidated three House bills: HB 8082, HB 8327, and HB 8352.
“None of the energy sectors they consulted posed any objection to the Malampaya Fund subsidy. They were all in favor of it. That made the TWG’s work easier,” Uybarreta added.
According to 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. In electricity billings, the stranded cost is part of the universal charges.
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.”
“Over at the Senate, we have been informed that following committee approval of the Anti-Powerlines Disturbance Bill, the senators can deliberate on the same bill also in January. If all goes well, Congress can have these two energy bills ready for signature of President Duterte by May 2019,” Uybarreta said.
