With the Tax Reform for Acceleration and Inclusion (TRAIN) Law taking effect this year, electricity bills are seen to increase due higher coal excise tax and other factors.
Under the TRAIN law, the excise tax on coal will be P50 per metric ton in 2018, P100 in 2019, and P150 in 2020.
Estimates say that there would be an increase of eight centavos per kilowatt-hour (kWh) within the Meralco franchise area because of the coal excise tax and the removal of value added tax (VAT) exemption of the National Grid Corp. of the Philippines under TRAIN.
With that estimate, customers in a typical household consuming 200 kwh are seen to pay P16.16 on top of their monthly bills in February.
“The total is eight centavos. That would be the full impact for Meralco customers this year,” Meralco head of utility economics Lawrence Fernandez said.
End-users are now looking for ways to adjust to the looming power rate hike following TRAIN. One solution consumers may consider is the use of prepaid electricity service or Kuryente load (KLoad).
Through the Kuryente Load system, a household’s power consumption will depend on how much a person pays. This is monitored through an intelligent meter and daily text reminders sent to customers.
Kuryente Load could be the solution in helping customers budget their monthly power bills. The scheme could also be used by residential property developers on their units.
In a report by Manila Bulletin, there are over 42,000 customers that are using the Kuryente Load program.
Meralco said that through Kuryente Load, consumers can save an average of 20 percent on electric consumption when using prepaid electricity.
Kuryente Load is available in Manila; Angono, Cainta, Taytay, and Binangonan in Rizal: Selected areas in San Juan, Pasig, Quezon City, Caloocan, Pasay, Cavite, Bulacan, Paranaque, Tagaytay, Makati, and Mandaluyong.
For more information on Kuryente Load, you may visit this link.