In order to reduce the burden of high electricity rates for consumers, Senator Risa Hontiveros said that the energy sector must push for hastened deployment of renewable energy in the country.
Hontiveros said renewable energy deployment would allow universal access to modern electricity services, particularly in social housing, rural electrification, and addressing energy poverty.
On top of that, she also emphasized that reducing the Weighted Average Cost of Capital (WACC) from the National Grid Corporation of the Philippines (NGCP) and other private distribution utilities’ (PDUs) and eliminating the value-added tax (VAT) implemented on system losses and lifeline subsidies will aid in a more affordable power for Filipino consumers.
Previously, the Energy Regulatory Commission (ERC) was urged to carry out reforms in the energy sector to address the factors leading to questionable expenditures.
Meanwhile, the completion of the fourth regulatory reset process (RP) for the NGCP was confirmed by ERC Commissioner Monalisa Dimalanta, adding that they also intend to conduct RP for PDUs.
Dimalanta said this initiative is expected to manage NGCP’s high revenues, unconscionable payout of cash dividends for its shareholders, and rationalize unwarranted operational expenses.
ERC, along with the Bureau of Internal Revenue (BIR), are now discussing the VAT being applied to electricity.
Hontiveros affirmed that the need for prompt implementation of reforms will ensure that utility companies act for the public’s welfare and interests.