Electricity bills soon to include 3% franchise tax

[oisilener1982]

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MANILA, Philippines - Power rates are expected to increase nationwide as regulators have approved the inclusion of a new cost to consumers’ monthly bills.

The 3% franchise tax paid by National Grid Corp. of the Philippines (NGCCP), the Energy Regulatory Commission (ERC) said in a notice yesterday, will now be part of the monthly transmission costs of distribution utilities.

"The commission approved the recovery of a 3% national franchise tax of the NGCP which it bills from customers like distribution utilities," ERC Executive Director Francis Saturnino C. Juan told BusinessWorld in a telephone interview.

"The distribution utilities then asked if they will be allowed to recover that payment to NGCP from its transmission charge which is passed through to consumers," he added.

The final impact of the ERC decision, which will take effect in 15 days, is still being determined, and Mr. San Juan claimed that "not all distribution utilities will choose to recover the NGCP franchise tax through its consumers."

The ERC, in a March 7 decision, said: "NGCP’s franchise tax is considered to be a pass through cost on the part of the distribution utilities that can be included in the determination of the total transmission cost used in the transmission rate adjustment mechanism."

Republic Act 9511, which granted NGCP a franchise to transmit electricity, requires the firm to pay a 3% national franchise tax in lieu of all other taxes. Recovery of the tax was approved by the regulator on Nov. 22, 2010 and NGCP started charging distribution utilities a month later.

The impact on consumers is still being determined, a Manila Electric Co. (Meralco) official yesterday said.

"It will be tucked into NGCP’s transmission charge to Meralco and not as a separate item. [Transmission charges] will be impacted but we will only pass on to our customers based on what NGCP bills us," Meralco External Communications Group head Dina Lomotan said.

Meralco’s transmission charge for March was P1.0409 per kilowatt-hour.
NGCP -- a consortium that includes State Grid of China -- took over the national electricity grid from state-owned National Transmission Corp. after it bid $3.95 billion for a 25-year franchise.

http://www.abs-cbnnews.com/business/...-franchise-tax

[mybuuz]

additional charge napud. when i read my bill, halos katunga puro charges. questionable pa kaayo ang uban gipamutang.

[DeathFox]

Yey!!! Sa matuwid na daan!!!

[k!ck@ss]

na-unsa naman ni oi!.. lingaw au mga Lopez ani kay d man sila kontrahan ni noy2x

[r51d3r19]

tanan na lang increase...ang sweldo pwerte gahia e-increase. paitaaaahhh!

[james_chaw]

if the major players of this country want to suck the masses dry, then we are dooooooommmmedddddd. there's your Armageddon!

[Hammer_and_Sickle]

kabantay mo?nagka-taas ang tannan karun?pas-pas ra ba kaayu, almost everyday na lang, na'ay mo taas,
mo sabay sa agtang ni abNoy?mo-anam sad ug taas, hehehehehe

[oisilener1982]

kabantay mo?nagka-taas ang tannan karun?pas-pas ra ba kaayu, almost everyday na lang, na'ay mo taas,
mo sabay sa agtang ni abNoy?mo-anam sad ug taas, hehehehehe

Apil pud ang agtang sa imong avatar nagka taas pud..hehehe

[Hammer_and_Sickle]

Apil pud ang agtang sa imong avatar nagka taas pud..hehehe

hehehehe, daan na mn ni, hahahaha

[hayden]

maynta mo-apil ug taas ang buot aning bright natoh nga presidente, mamasangil bya ni dayon sa daan nga administrasyon...