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Murang Kuryente Act to be implemented soon

The Murang Kuryente Act will soon lift the burden of every household of having to pay additional costs in their electricity bill.


BALABAC, PALAWAN, Philippines – A cluster of electric meters installed in a community in Balabac Island, an up-and-coming tourism destination off the southern tip of Palawan province, 26 Aug. 2019. Consumers who use 200 kWh per month can save P172 per month or P2,064 per year once the Murang Kuryente Act is fully implemented. Photo by Mark Cayabyab/OS WIN GATCHALIAN

The Department of Energy has just released the draft Implementing Rules and Regulations (IRR) for the Murang Kuryente Act.

The law states that a portion of the national government’s share of the proceeds from the Malampaya Natural Gas Project will be used to pay for two items – Universal Charge for Stranded Debts (UCSD) and Universal Charge for Stranded Contract Costs (UCSCC) – included in electricity rates paid by consumers.

Sen. Win Gatchalian, Chair of the Senate Energy Committee and co-author of the law, explained that each Filipino household is currently paying ₱0.09 per kilowatt hour for UCSD and UCSCC in the electricity bill.

On top of this, consumers are expected to pay additional Php 0.86 per kilowatt hour for UCSCC and UCSD. But with the enactment of the Murang Kuryente Act, consumers will no longer pay the additional cost. Those consuming 200 kWh per month can save Php 172 per month or Php 2,064 per year.

“Ang savings na ito ay pwede nang idagdag upang maipambili ng karagdagang tatlo o apat na kilo ng bigas kada buwan o di kaya ay isang sako ng bigas kada taon”, Gatchalian said.

“Makakaasa ang ating mga kababayan na simula Disyembre ay hindi na tataas ang UCSD at SCC na nakapaloob sa bill ng kuryente nila”, he added.

Stranded contract costs are excess of the contracted cost of electricity under independent power producer contracts over the actual selling price of the contracted energy output.

Stranded debts on the other hand, refer to any unpaid financial obligations of the National Power Corporation (NPC) which have not been liquidated by the proceeds from the sales and privatization of NPC assets.

“Tututukan natin ito lalo na’t matagal-tagal na ring pinapasan ng mga Pilipino ang utang ng NPC”, Gatchalian stressed.