BACOLOD CITY – The newly-signed “Murang Kuryente Act” is expected to lower consumers’ electricity rates in Negros Occidental in next few months this year.
Over 190,000 member-consumers of Central Negros Electric Cooperative (Ceneco) in four cities and three municipalities in Negros Occidental will benefit from the provisions of the law.
President Rodrigo Duterte recently signed into law Republic Act 11371, or “Murang Kuryente Act” on Aug. 8. It allows the government to allocate a portion of the net national government share from the Malampaya natural gas project for the payment of the stranded contract costs and stranded debts.
Norman Pollentes, Ceneco officer-in-charge corporate planning manager, said consumers under their jurisdiction include those who have been paying stranded charges being paid to the National Power Corp. (Napocor).
These are power consumers located in cities of Bacolod, Bago, Talisay, and Silay, and towns of Murcia and Salvador Benedicto.
The law defines “stranded contract costs” as the excess of the contract cost of electricity under eligible independent power producer contracts that have been approved by the Energy Regulatory Board (ERC) as of Dec. 31, 2000.
“Stranded debts”, meanwhile, are Napocor’s unpaid financial obligations which have not been liquidated by the proceeds from the government corporation’s sales and privatization of assets.
The “Murang Kuryente Act” provides that P208 billion of the proceeds of the net national government share from the Malampaya fund shall be utilized for the payment of stranded contract costs and stranded debts transferred to and assumed by the Power Sector Assets and Liabilities Management Corp.
Pollentes said a rate case will still be filed to determine how much will be deducted from each consumer’s monthly bill.
“Ceneco will also wait for an order from the ERC on the implementation of the law,” he added.
In Ceneco’s electricity bill, the “stranded debts” being passed on to its member-consumers is P.0428 per kilowatt-hour (kWh) while the “stranded costs” amounts to P.0543 per kWh.
A household with an average monthly consumption of 200 kWh per month pays an additional P8.56 for “stranded debts” and P10.86 per kWh in “stranded costs” or a total of P19.42.
The total amount varies, depending on the power consumption of consumers. If a household consumes more than 200 kWh monthly, it also pays higher “stranded charges.”
The new law states it is hereby declared the policy of the State to protect public interest by ensuring the provision of reliable, secure, and affordable supply of electric power to consumers, and it shall implement policies and programs to ensure transparent and reasonable prices of electricity to consumers by minimizing the universal charges for stranded costs and stranded debts.
For families consuming an average of P200 kWh monthly, this translates to P2,064 savings from reduced electricity cost per year. (With a report from PNA/PN)
