March 17, 2018
Committee on Energy
Senate of the Philippines
Re: SB 898, 924, 1110, Res. 39, 130
Attn.: Atty. Grace Ann C. Salesa
Legislative Committee Secretary
We fully support the initiative of the Senate to provide subsidy to the electricity consumers as may be authorized by law and as proposed in SBs 898, 924 and 1110.
In the determination of the amount of the Government share from the net proceeds of any commercial production of indigenous resources that are to be utilized as subsidy for the electricity consumers, the Bills should provide as follows:
1. Notwithstanding the arbitration case cited in Senate Resolution 39 and 130, to include the income tax of the energy service contractors which are deemed paid and taken out in the net share of the government .
2. To exclude the share of the local government units as provided in section 290 of the Local Government Code, Republic Act No. 7160, i.e. 40% of the share of the National Government.
3. To repeal Section 34 of Republic Act 9136 or the Electric Power Reform Act of 2001 on provisions mandating that consumers should pay for the recovery of the stranded contract costs, stranded debts and all other universal or missionary usage fees as authorized by the Energy Regulatory Commission.
4. To include the Php 53.0 Billion subject of arbitration between the National Government and the Malampaya service contractors, in the event of a favorable decision for the National Government, i.e. Senate Resolution No. 39 and 130.
Atty. Victorio Mario A. Dimagiba, AB, LLB, LLM
March 17, 2018