MANILA -- Four pieces of legislation being pushed at the Senate would lower power costs by up to 15 percent, Senator Sherwin Gatchalian said Thursday.
These bills shall be passed simultaneously to ensure that their combined impact is felt by consumers, Gatchalian, who chairs the Senate committee on energy, said during the 44th Philippines Business Conference at the Manila Hotel.
These energy-related bills are the Energy Virtual One-Stop Shop (EVOSS) Act, Electricity Procurement Act, Recoverable System Loss Act, and Murang Kuryente Act.
According to the senator, the EVOSS aims to accelerate the establishment of power plants by simplifying and expediting the bureaucracy that power industry investors need to undergo. Like the Ease of Doing Business law, he said, registration for the project that will not be acted upon in the prescribed time frame will be deemed approved.
This bill targets to increase the supply of energy by increasing the number of operational power plants in the country, he said. Gatchalian added that potential savings in the electricity bill from EVOSS is approximately PHP0.35 per kilowatt hour (kWh).
The Electricity Procurement Act, on the other hand, seeks to subject to public bidding all generation contracts, for the sake of transparency and to foster competition in the market, he explained. Gatchalian said that based on a study done by the upper house, a competitive selection process will cut electricity costs by PHP0.34 per kWh.
The third measure is the Recoverable System Loss Act that seeks to put a 5-percent to 10-percent cap on system loss collection, he said, adding that this bill aims to lower electricity rates by PHP0.13 per kWh.
Lastly, the lawmaker said the Murang Kuryente Bill seeks to use the PHP204-billion Malampaya fund to pay the National Power Corp.’s debt, which is now being charged to consumers' electricity bill. By enacting this bill into law, he said, power cost savings will be about PHP0.57 per kWh.
In total, these four bills would cut power cost by PHP1.39 per kWh. Gatchalian said that once they are passed into law, a micro-enterprise that pays PHP3,062.28 a month would only pay PHP2,655.73, saving PHP406.55.
“It’s very difficult to have one solution. We find ways, different assets to lower down electricity cost,” the senator said.
“To grow our economy, our businesses, we need to lower down our electricity cost. This contributes 30 to 40 percent direct cost on business. If we can lower that for at least 10 percent of your expenses, you can use that for expansion,” he added. (PNA)
