“Murang Kuryente” Act: A rare victory for consumers

February 15, 2019

Consumer group CitizenWatch Philippines lauds the approval on third and final reading of Senate Bill No. 1950, otherwise known as “Murang Kuryente Act”. The bill, authored by Senate President Pro Tempore Ralph Recto, aims to reduce electricity rates by allocating the net national share from the Malampaya Gas Project for the payment of strandedcontract costs, stranded debts, missionary electrification charge and environmental charge of the National Power Corporation and the Feed-In-Tariff (FIT) Allowance.

House Bill No. 8869, on the other hand, is the consolidated version of the “Murang Kuryente Act” sponsored by Rep. Lord Allan Velasco, Chairman of the Energy Committee of the House of Representatives.

The Php 207 Billion Malampaya Fund remains largely unused since 2001 as it was initially intended to fund the exploration, development, and exploitation of energy resources. By tapping into this fund, consumers can save ₱169.48 per month or ₱2,033.76 per year for average Filipino households consuming 200 kilowatt hours per month.

On February 7, 2018, the latest version of the Senate bill was transmitted to the House of Representatives for its concurrence. According to Senator Sherwin Gatchalian, Chairman of the Energy Committee, the bicameral conference committee will convene by next week to resolve differences on the percentage at which Malampaya funds will be used for the purpose of paying for the stranded costs.

While many power sector reforms are needed to be done, CitizenWatch Philippines supports the “Murang Kuryente Act” as a rare win for Filipino consumers.