Investors and advocacy groups are clamoring for the fast passage of the proposed law for it to be implemented as soon as possible.
The measure is waiting its final approval and signing into law by President Rodrigo Duterte.
Two major changes were included in the final form of the legislative piece, mainly affecting the incentives rationalization propounded under the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO), the second tax reform program of the current administration.
The lawmakers decided during the bicameral level of deliberations to limit the income tax holiday (ITH) to four years for non-pioneering projects, while the Investment Priorities Plan (IPP) had been restricted to 10 years from the previous 15 years.
Senator Sherwin Gatchalian primarily authored the Senate Bill 1531, while Representative Lord Allan Velasco authored the version of House Bill 8629. Both Houses reconciled the version of the legislative measure.
Philippine Energy Efficiency (PE2) Alliance President Alexander Ablaza said that the bicameral conference committee “agreed to re-anchor the fiscal incentives provision on existing Executive Order 226,” as quoted in a Manila Bulletin report.
Gatchalian noted that the passage of the measure can result in investment-avoidance on additional power capacities, which in return could reduce the cost of consumers’ expenses.
“The power supply will not come in as a form of physical plants, the power supply can come in the form of savings,” he was quoted in a Manila Bulletin report.
Consumers could reap the “cost savings” benefit if they would shift to more energy-efficient way of consumption as noted by energy experts.
Local government units (LGUs) have a role in implementing an energy-efficient practice among end-users and concerned stakeholders.
Once the measure is passed into law, there is already an order for them to create Energy Efficiency and Conservation (EEC) office and appoint their EEC officer.
This will create energy efficiency and conservation standards and strategies in local governance with the creation of local energy efficiency and conservation plan, as well as the guidelines and issuance of building permits in energy conserving designs on buildings.
The proposed measure also aims to develop and maintain a National Energy Efficiency and Conservation database, where energy consumption and application of energy efficient, and energy technologies will be stored.