Kahayag - Official Newsletter of APEC Party-List | No. 1, Vol. 1

Assistant Minority Leader Sergio Dagooc served as a resource speaker at the “Presyo sa Kuryente, Altapresyon sa Konsumante” press conference organized by the Association of Mindanao Rural Electric Cooperatives (AMRECO) on August 31 held at Cagayan de Oro.

AML Dagooc detailed the legislative measures proposed by the Power Bloc to amend the Electric Power Reform Industry Act (EPIRA) or the Republic Act 9136 of 2001 to “tailor-fit” the law to the current needs of the energy sector.

AML Dagooc discussed House Bills 2150, 2153, 3342, and 3430 amending Sections 31, 38, 45, 47 (f), and 47 (j). House Bill 2150 seeks to empower the Energy Regulatory Commission; House Bill 2153 amends Section 47 (f) and Section 47 (j) which tackles the

privatization of the National Power Corporation; House Bill 3342 amends the Retail Competition Open Access (RCOA) clause under Section 31; while House Bill 3430 amends Section 45 which covers the Cross Ownership, Market Power Abuse and Anti-Competitive Behavior in the energy sector.

AML Dagooc also discussed the measures of the Power Bloc during the 18th Congress which were refiled in the current Congress, namely, House Bill 2151 or the Electricity VAT Exemption; House Bill 2152 or the Energy Advocacy Counsel Office; House Bill 2155 or the Submeter Regulation Act, and House Bill 3431, Systems Loss Act.

As a rejoinder, AML Dagooc reiterated his call to amend the EPIRA, the legislative bedrock of the power industry.

APEC Party-List Representative Sergio Dagooc inquired on the status of Sitio Electrification Program during the budget briefing last September 1. Rep. Dagooc directed his manifestation to the National Electrification Administration, an attached agency of the DOE, represented by the NEA Administrator Emmanuel Juaneza. According to Rep. Dagooc, the timely release of the Sitio Electrification Fund of the NEA from the Department of Budget and Management will greatly help the absorptive capacity of distribution utilities such as electric cooperatives.

“Just for the record, kaya sinasabi ng DBM na mababa ‘yung absorptive capacity ng NEA sa Sitio Electrification [Program] dahil nire-release nila ‘yung pondo, third quarter na. Magpapa-bidding pa po ‘yan, mag-a-acquire ka pa ng Right of Way, so cash-based tayo, hindi namin matapos ‘yan sa December. I would like to manifest, Madame Chair, that the Department of Budget and Management should release the Sitio Electrification Fund [by the] first or second quarter of the year para mataas ‘yung absorptive capacity. Palagi niyong paulit-ulit “absorptive” [capacity] pero kung minsan, December niyo na ni-rerelease.” Rep. Dagooc said.

Under PD 269, the NEA is mandated to carry out the task of the State to pursue rural electrification in the countryside.

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I would like to manifest, Madame Chair, that the Department of Budget and Management should release the Sitio Electrification Fund [by the] first or second quarter of the year para mataas ‘yung absorptive capacity. Palagi niyong paulitulit “absorptive” [capacity] pero kung minsan, December niyo na ni-rerelease.

DAGOOC SHEDS LIGHT ON BALLOONING ELECTRICITY COSTS PRESS CONFERENCE

APEC Party-List Representative and Assistant Minority Leader Sergio Dagooc informed members of the media on the technical aspects of the steady spike in electricity rates during the Minority Bloc Press Conference on August 17.

AML Dagooc acknowledges the alarming spikes in power rates; however, clarifies that the increase comes from the generation charges that comprise 55% of the electric bill which are influenced by various factors such as fuel price.

AML Dagooc debunked the misconception that the increase in electricity rates are because of the distribution utilities (DUs) such as electric cooperatives (ECs), which are regulated by the Energy Regulatory Commission.

The solon stressed that DUs are “collectors” of the unbundled rates in the bill and remit the amounts collected to respective agencies such as the power suppliers, the National Grid Corporation of the Philippines

(NGCP) for transmission, and the Bureau of Internal Revenue (BIR) for the value-added taxes (VAT).

“Let me also reiterate sa ating mga kababayan na ang mga distribution utilities, gaya ng electric cooperatives, ay taga-kolekta lamang ng mga charges na ito. Ang binabayaran na generation charge, transmission charge, taxes at iba pa ay nireremit at ibinabayad din ng distribution utilities sa respective entities, particularly GenCos, NGCP, at BIR at wala pong matitira sa ECs,” the solon said.

Rep. Dagooc expressed his support to the ECs as they continue to be at the receiving end of the mass complaints from consumers; according to the solon, the ECs are non-profit.

As a recommendation, the solon suggests reviewing the generation component of the bill and proposes “returning generation assets to the government” to mitigate rising electricity costs.

APEC PARTY-LIST

ERC: “INCREASE IN GENERATION COSTS, MAIN CAUSE OF ELECTRICITY PRICE SPIKES”

APEC Party-List Sergio Dagooc raised a series of inquiries to the Energy Regulatory Commission during its budget briefing at the House of Representatives on September 1.

Rep. Dagooc probed the rising electricity rates by addressing the ERC represented by its Chairperson, Atty. Monalisa Dimalanta. The solon asked the ERC to clarify the cause of the steady spikes of electricity rates; the chief of the ERC then confirmed that it was indeed the generation charges that increased. Following the confirmation, Rep. Dagooc asks ERC on its capacity to lower down electricity rates.

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With respect to the regulated aspects po, opo, ‘yung distribution [at] transmission. Sa generation po kasi, competitive na po, so to a certain

extent, ‘yung merkado po ‘yung nagku-control. Pero ang kinu-control po ng ERC, magkano ‘yung pinapasa doon sa mga captive customers,” ERC Chairperson Dimalanta said.

“Ang mga distribution utilities po ay wala pong kinikita doon sa mga passon charges na tinutukoy natin, at isa na doon ‘yung nagtaas, ang generation charge,” Rep. Dagooc said.

Section 38 of the Electric Power Industry Reform Act (EPIRA) mandates the ERC as an independent, quasi-judicial regulatory body of the power industry. The agency is also responsible for promoting competition, encouraging market development, ensuring customer choice and penalizing abuse of market power in the electricity industry under Section 43 of the EPIRA.

SOLON GRILLS DPWH; SECURES COMMITMENT TO SETTLE POLE RELOCATION COMPENSATION

APEC Party-List Representative

Sergio Dagooc interpellated the sponsor of the Department of Public Works and Highways during its Fiscal Year 2023 budget deliberations on September 26 at the House of Representatives.

The solon lamented the recurring issue of the continued non-compensation of the DPWH on pole relocation expenses incurred by the distribution utilities impacted by road widening projects of the government. He further cites various Joint Circulars detailing the breakdown of compensation between the Department of Energy and the DPWH mandating an equal share of the expenses between the two government bodies.

According to Rep. Dagooc, as of 2020, electric cooperatives have already shelled out approximately 4 Billion pesos without receiving the half of the expenses due from the DPWH.

“Napakarami na pong poste na nirelocate kahit hindi ninyo binayaran. Nirelocate na lang namin [ng electric cooperatives] because it is very unsafe

to the riding public, to the motorists.

As of 2020, more than 4 billion po ‘yung dapat bayaran ninyo sa mga poste na 69,000 more or less na irelocate. However, what has been paid only is 491 million, napakalaking daiscrepancy,” the solon said.

The solon called the attention of DPWH Secretary Manuel Bonoan on the matter, securing its commitment to settle the payment to the ECs affected, emphasizing that there is available government funding for the expenditure.

“Babayaran niyo po ba ‘yung mga electric coop na natapos na magrelocate, hindi niyo pa binayaran ‘yung 50% [ng expenses ng electric cooperatives]? I hope DPWH and the electric cooperatives can sit down, together with NEA. Can I get a commitment from the good secretary through the distinguished sponsor?” Rep. Dagooc asked.

In response to the query, the DPWH has agreed to settle the unpaid obligations.

APEC PARTY-LIST REPRESENTATIVE SPEAKS ON RISING ELECTRICITY COSTS

Assistant Minority Leader Sergio Dagooc underscored the main drivers causing the steep electricity costs in his privilege speech delivered on August 8.

AML Dagooc opened his speech by declaring that it is his “duty to bring to light the factors contributing to the increase in electricity prices” as a Representative of the aggrupation of electric cooperatives nationwide.

According to AML Dagooc, the steady spike in electricity costs are largely attributable to the staggering increase in generation charges which comprise more than 55% of the electric bill.

“Now, with the recent oil, coal, and fuel prices reaching unprecedented heights, this has a direct and tremendous effect on the electricity rates since most power generation plants are fueled by either oil or coal. Karamihan po sa mga planta ay oil-based or coal-based power

plants o gumagamit ng oil at coal bilang panggatong sa pagpapatakbo ng turbina upang makapag-generate ng kuryente,” AML Dagooc said.

AML Dagooc then proceeded to call for an investigation into the contentious formation of the Independent Electricity Market Operator of the Philippines (IEMOP) citing different factors such as the collection of two market fees passed on to consumers, despite the Energy Regulatory Commission (ERC) ruling against the unauthorized separate Market Fees collected by IEMOP, IEMOP’s non-adherence to the Implementing Rules and Regulations of RA 9136 which requires not less than two (2) years of experience and expertise as a leading market operator before commencing its operations.

In conclusion, AML Dagooc reiterated the need to evaluate the generation charge “to ultimately lower down the costs of electricity”.

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It is our duty to bring to light the factors contributing to the increase in electricity prices

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