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Duterte signs ‘Murang Kuryente Act’ into law

 

Meralco linemen check the electric meter  along quezon blvd in manila  on August 13, 2019. President Duterte signs RA 11371 or Murang Kuryente Act which aims to reduce the cost of electricity by allocating the government share from the Malampaya natural gas project in Palawan for the payment of debts of the National Power Corporation (Napocor). The new law might reduce Php 200 to the monthly bill of household which consumes 200 kilowatts per hours per month(photo by ali vicoy)

A MERALCO lineman checks the electric meters along Quezon Boulevard in Manila. President Duterte signs Republic Act 11371 or Murang Kuryente Act which aims to reduce the cost of electricity by allocating the government share from the Malampaya natural gas project in Palawan for the payment of debts of the National Power Corporation (Napocor). (Ali Vicoy)

A measure seeking to reduce electricity rates for consum­ers has been signed into law by President Duterte.

Republic Act No.11371 or the “Murang Kuryente Act” al­lows the use of government share from the Malampaya nat­ural gas project to settle obligations of the National Power Corporation (NPC).

Prior to the passage of the law, these debts are charged to consumers through universal charge in their monthly elec­tricity bill.

“It is hereby declared the policy of the State to protect public interest by ensuing the provision of reliable, secure and affordable supply of electric power to consumers,” the law read.

“The State shall implement policies and programs to en­sure transparent and reasonable prices of electricity to con­sumers by minimising the universal charges for stranded contract costs and stranded debts,” it added.

Under the new law, R208 billion of the proceeds of the net government share from the Malampaya fund will be used for the payment of NPC’s stranded contract costs and stranded debts. If the obligations are fully paid before the funds are exhausted, the remainder of the amount will be used to finance energy resource development and explora­tion programs.

The law was signed by the President last Aug. 8.

Senator Sherwin Gatchalian, sponsor of the measure, earlier pushed for the passage of the Murang Kuryente bill, saying the use of Malampaya fund would help lower power costs.

Gatchalian said the implementation of the law would re­sult in R172 monthly savings in household consuming 200 kilowatt hour per month. (Genalyn Kabiling)

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