THE Power Sector Assets and Liabilities Management Corp. (PSALM) said consumers can now look forward to the implementation of the Murang Kuryente Act (MKA) after the Department of Finance and the Department of Energy have signed the implementing rules and regulations (IRR) to operationalize the provisions of this law.
The MKA is expected to lower overall power costs in the country by allowing the utilization of the government’s share from the Malampaya gas to power project amounting to P208 billion to cover the universal charges (UC) paid by all power consumers that rooted from the debts of the National Power Corp. which are now being settled by PSALM.
UC is currently composed of the stranded contract costs (SCC) and stranded debts (SD).
The IRR specified that no new UC for SCC and SD shall be collected upon its effectivity and that PSALM shall not file with the Energy Regulatory Commission any new petition for UC SCC and SD until the P208 billion allocated amount is exhausted and no other allocations are made by Congress.
It also detailed documentary requirements, timeline, responsibilities and functions of concerned agencies tasked to implement the law, and specified the processes of determining the annual allocation from the Malampaya fund through the General Appropriations Act, consistent with the fiscal program of the government and the releases of approved amounts to PSALM.
“We are glad that the IRR has finally been signed. This gives consumers relief from paying an estimated total additional amount of P0.86 per kilowatt-hour of UC SCC and UC SD covering up to year 2024,” Irene Garcia, PSALM president and chief executive officer, said in a statement.
For a household consuming 200 kWh of electricity monthly, this translates to about P172 of monthly savings from reduced electricity rates, or an annual savings of P2,064.
Amid the issuance of the IRR, consumer advocacy group Laban Konsyumer Inc. reiterated its appeal to the national government to include payment of the utility bills of COVID-19 cash grantees.
Vic Dimagiba, the group’s president, said a government payment guarantee shall prevent utility companies from cutting off power and water services to beneficiaries.
Most utilities including Manila Electric Co., Maynilad Water Services Inc. and Manila Water Company Inc. have assured that they will not cut connections during the entire duration of the enhanced community quarantine.
