A senator and a think tank group have asked the government to introduce measures that would ease the burden of Filipino households, especially on electricity and power.
Senator Win Gatchalian, for one, asked the government to make concessions for Filipino families, whose electricity bills are expected to pile up after a month of reprieve especially that the Enhanced Community Quarantine has been extended.
The senator expressed concern that ordinary Filipinos, especially those belonging to the marginalized sector, might not have the financial capacity to pay their two months worth of electricity bills in full and therefore risk having their electricity disconnected.
Gatchalian, who chairs the Senate Committee on Energy, prodded the Energy Regulatory Commission to look for solutions that will ease payment terms of consumers. He suggested to stagger the two months of electricity bills for not less than three months.
He also appealed to Meralco to temporarily waive its convenience fee so that consumers may be able to pay their electricity bill using the company’s mobile app without extra charges. According to Meralco, consumers who pay via the said app will have to pay an additional P47 convenience fee.
“For humanitarian reasons, let’s think of ways that will make the lives of our kababayans better and alleviate their suffering as we face this pandemic,” he said.
Think Tank group Infrawatch PH, meanwhile, is calling for the suspension of value-added tax and universal charges on power rates until community quarantines remain in place around the country.
“The suspension of VAT and universal charges on electricity rates during the coronavirus crisis translates to around two hundred pesos in savings for the average household consuming 200 kWh. More important, this translates into a staggering P4.2-billion indirect economic aid to 21 million lower income households without the need for new loans or the sale of government assets,” said Terry Ridon, Infrawatch PH convenor and former urban poor chief of the Duterte administration.
Ridon said suspending VAT on power rates allows low income families more savings to spend on food and basic necessities.
“Every peso which we can add to the savings of Filipino families is already a win during this crisis. Two hundred pesos affords families an additional six kilos of rice, without the need of fresh funding from government,” Ridon said.
Ridon, who was a member of the House ways and means committee, said that VAT on power continues to be a very contentious issue because systems losses, lifeline subsidies, and franchise taxes are levied with VAT.
“This is lazy, unsound policy-making inherited from previous administrations, as non-revenue activities are taxed. The President has the power to stop this, and now is the most perfect time,” he said.
Ridon added that universal charges can also be suspended, particularly receivables of the Power Sector Assets and Liabilities Management Corporation for the National Power Corporation’s stranded debts and contract costs.
“Indirect economic aid to 21 million low income households from the suspension of PSALM universal charges amounts to P207 million. This is an intervention which the President can order at once, without question,” Ridon said.
Universal charges are imposed for the recovery of NPC stranded debts and contract costs and collected from electricity consumers on a monthly basis.
“Together with the Energy Regulatory Commission, PSALM can certainly make this heroic contribution to the country’s coronavirus effort by suspending collection until the worst is over,” he added.
