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Now Reading: TO PAY OFF NPC DEBT | Duterte inks laws on cheaper power rates, power line rehab
TO PAY OFF NPC DEBT | Duterte inks laws on cheaper power rates, power line rehab
August 13, 2019 , 08:02 PM

(AUGUST 13, 2019) – President Rodrigo Duterte has signed into law the Murang Kuryente Act, a measure that would lessen the cost of electricity.

The president inked Republic 11371 on August 8 which authorizes the use of the P208-billion Malampaya Fund to pay for the stranded contract costs and debt of the National Power Corporation (NPC).

Stranded contract costs of the NPC refer to the excess of the contract cost of electricity over the actual selling price of the contracted energy output. Stranded debts, meanwhile, refer to any unpaid financial obligations of the NPC which have not been liquidated.

At present, consumers are paying off the debts, as reflected in their monthly electric bill.

Senator Win Gatchalian, who sponsored the law in the Senate, said households which consume 200 kilowatts per hour monthly can expect a P172 deduction from their monthly bills.

“Ang pagpasa ng batas nito ay isang malaking tagumpay ng bawat Pilipino consumer tungo sa mas abot-kayang kuryente para sa lahat,” Gatchalian said.

Duterte also signed RA 11361, or the Anti-Obstruction of Power Lines Act, which places a mechanism for the responsive maintenance and rehabilitation of transmission, sub-transmission and distribution lines that would prevent outages and ensure continuous supply of electricity.

Gatchalian said the measure is timely for the rainy season, when powerful typhoons hit the country. (Randell Ritumalta/JMF)

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