Law on cheaper power rates signed

Dharel Placido, ABS-CBN News

Posted at Aug 13 2019 04:26 PM | Updated as of Aug 13 2019 06:15 PM

MANILA (UPDATE) - President Rodrigo Duterte has signed a law sparing consumers from subsidizing government debt via added electricity charges, Sen. Sherwin Gatchalian said Tuesday.

Duterte signed on Aug. 8 Republic Act 11371 or the so-called “Murang Kuryente Act,” a copy of which Gatchalian released Tuesday. He sponsored the measure in the Senate.

The law taps a portion of the Malampaya fund to pay for debt incurred by the National Power Corporation (Napocor) which were previously passed on to consumers as “universal charges.”

Under the law, P208 billion from the national government’s share of the Malampaya fund shall be used for the payment of Napocor’s “stranded debts” and “stranded contract costs.”

Gatchalian said those who consume 200 kWh a month should expect a deduction of P172 from their bills.

Meanwhile, Duterte also signed the Anti-Obstruction of Power Lines Act, which seeks to maintain and rehabilitate transmission, sub-transmission, and distribution lines to prevent power outages.

“The measure is timely for the rainy season when powerful typhoons barrel through our country,” Gatchalian said in a statement.

Below is the full copy of the law: