Naranniag - Official Newsletter of PHILRECA Party-List | No. 1 Vol 2.

What’s INSIDE? ■ ECs may avail real property tax... page 2

January - March 2023

■ De Jesus questions NPC’s role in Mindoro power crisis... page 3

OFFICIAL PUBLICATION OF THE PHILRECA PARTY-LIST

■ Deputy Minority Leader encourages ECs in franchise application... page 3 ■ Steps on Congressional Franchise Application... page 4

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“The passage of HB 6295 is a huge win for the whole electric cooperative movement. ”

HOUSE APPROVES FRANCHISE OF LEYECO II

O

n December 5, 2022, the House of Representatives approved on Third and Final Reading House Bill 6295, granting the Leyte II Electric Cooperative (LEYECO II) the Congressional franchise to operate and provide electric services to the City of Tacloban and the Municipalities of Babatngon and Palo, Province of Leyte.

In their sponsorship speech, the principal aut of the bill stated that LEYECO II was able to energize 100% of the barangays within their franchise area. Notably, LEYECO has been consistently categorized as a “AAA” cooperative, the highest categorization given by the supervising government

agency for electric cooperatives, the Vera Perez Maceda.

National Electrification Administration.

“The passage of HB 6295 is a huge According to Deputy Minority win for the whole electric cooperative Leader Presley De Jesus, “the enactment movement. This solidifies its position of this bill will ensure the continuous as a trusted partner in achieving total delivery of electric service from electrification of the country and ensuring LEYECO II and will continue to create a brighter future for generations to come,” the path towards progress in Leyte.”

De Jesus said.

HB 6295 is principally authored by the Power Bloc Representatives Presley De Jesus and Sergio Dagooc, House Speaker Ferdinand Martin Romualdez, TINGOG Partylist Representatives Yedda Marie Romualdez and Jude Acidre, House Committee on Legislative Franchises Chairperson, Representative Gus Tambunting, Representative Pablo John Garcia, and Representative Edward

In a statement, LEYECO II expressed their gratitude to the principal authors of HB 6295, saying, “Thank you for ensuring that we will be able to continue to serve the Leyteños by upholding our mandate of total rural electrification. Padayon kita nga mamamati han tingog han mga mulopyo ug maghahatag hin lamrag han kinabuhi…”

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January - March 2023

OFFICIAL PUBLICATION OF THE PHILRECA PARTY-LIST

DE JESUS P

PUSHES FO THE MAIN G

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he Committee on Energ House Resolutions 34, 11 to address the power supply c prolonged power outages in t

PHILRECA Party-list R Power Corporation (NPC) in c and Occidental Mindoro. He events.

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ELECTRIC COOPS MAY AVAIL REAL PROPERTY TAX EXEMPTION

n line with their commitment to supporting electric cooperatives (ECs), Power Bloc Representatives Presley De Jesus of PHILRECA Party-list and Rep. Sergio Dagooc of APEC Party-list wrote a letter addressed to Secretary Jesus Crispin C. Remulla of the Department of Justice (DOJ) in an effort to revisit the 2014 DOJ Opinion No. 55 regarding Real Property Tax (RPT) Exemption.

this would have on consumers stating “the imposition of tax on a non-profit cooperative shall result in the increase of the amount payable on the electricity bill of the consumers since it is considered as a pass-through charge. Ultimately, the end consumers shall shoulder the burden of these taxes.”

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Last December 13, the DOJ issued Opinion No. 31 series of 2022, In their letter, the reversing the previous 2014 Power Bloc highlighted the opinion by stating that The imposition of tax on a nonexemption from income all electric cooperatives, profit cooperative shall result taxes granted to ECs under regardless of whether they in the increase of the amount Section 39 of Presidential are non-stock, non-profit payable on the electricity bill Decree No. 269, as cooperatives under the amended by the Republic National Electrification of the consumers since it is Act No. 10531. However, Administration, stock considered as a pass-through this exemption was cooperatives under the charge. Ultimately, the end stripped away by the Local Cooperative Development consumers shall shoulder the Government Code (LGC) of Authority, or stock burden of these taxes.

1991, which allowed for the corporations registered withdrawal of exemptions under the Securities and from local taxes for various Exchange Commission, entities, excluding registered cooperatives, non-profit can avail of the preferential rights under the LGC as hospitals, and educational institutions. long as they comply with the financial and operational standards set by the NEA. The 2013 amendment to RA 10531 inserted Section 32-A to clarify that ECs can still enjoy the The legal opinion, addressed to the Power Bloc preferential rights granted to cooperatives under the and the Department of Energy Secretary Raphael LGC. However, the 2014 DOJ Opinion No. 55 declared Perpetuo M. Lotilla is aligned with the NEA’s goal “to that ECs are still liable for local taxes, including the empower and enable ECs to cope with the changes RPT. brought about by the restructuring of the electric power industry”.

The Power Bloc highlighted the negative impact

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NPC Officer-in-Charge from the Island of Mindoro, it passes the obligation of pow explained that even in cases w NPC cannot automatically com the use of government resourc providers. He added that havin utilities group areas would be c

Rep. De Jesus countere electricity at all”, and stressed t there should be a continuous su

Rep. De Jesus further ma areas could only be resolved by

“This is what the Elect legislature, we have been taking We passed the Microgrid System unserved and underserved area

DE JESU FRAN

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PROBES NPC’S ACTION IN MINDORO POWER CRISIS;

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OR INTERCONNECTION TO GRID

gy of the House of Representatives continued its inquiry into 16, 118, 133, and 148 on November 17, 2022. The five HRs seek crises in Occidental and Oriental Mindoro, which have caused the two provinces.

Representative Presley De Jesus inquired about the role of National cases of power supply shortage as experienced in Oriental Mindoro stressed that the NPC should have a contingency plan for such

“ “

city is a basic right; it should ordable, reliable and there d be a continuous supply of city in the provinces and in Metro Manila.

Melchor Ridulme responded that NPC has already “graduated” explaining that when NPC “graduates” from a missionary area, wer generation to the new power providers (NPPs). He further where NPPs fail to provide the power requirements of an area, the me in as it needs the directive of the Department of Energy to justify ces in supplying electricity to areas that already have other power ng a standby quick response generator sets for every small power costly for NPC.

ed this by stating that “the most expensive electricity is having no that “electricity is a basic right; it should be affordable, reliable and upply of electricity in the provinces and in Metro Manila.”

anifested that the perennial problem of Mindoro and other off-grid y one thing: interconnection to the main grid.

tric Power Industry Reform Act (EPIRA) has envisioned. In the g steps to address the shortcomings of EPIRA and its implementation. ms Act primarily intended to spur the microgrid development in the as nationwide,“ De Jesus emphasized.

US ENCOURAGES ECs in NCHISE APPLICATION

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HILRECA Party-list Representative Presley De Jesus attended the “EC Franchise Application” webinar organized by the Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) last January 27.

Deputy Minority Leader De Jesus delivered an inspirational message to the attendees and expressed his confidence that electric cooperatives will be successful in their franchise applications because “ECs are hardworking, resilient and have paved the way for progress in our communities,” “I am optimistic that our colleagues in the House of Representatives will recognize that Electric Cooperatives helped improve the lives of so many Filipinos and are deserving of a legislative franchise.” De Jesus said.

process flow; Leyte II Electric Cooperative’s Institutional Services Department Manager Mr. Chris Garcia, who shared LEYECO II’s recent experience in complying with their own franchise application; Atty. May Flor Abuedo, the National Electrification Administration’s representative for Franchise Concerns, who tackled the Regulatory Concerns; and Atty. Karlo Domondon, PHILRECA Party-list’s Chief of Staff, who concluded the webinar with a synthesis and recap on EC’s Franchise Application.

The webinar was attended by the leaders and officers from various electric cooperatives. It was also graced by the Chairman of the House Committee on Legislative Franchise, Rep. Gus Tambunting, APEC Party-list Representative Sergio Dagooc and PHILRECA General Manager & Executive Director, Atty. Janeene DepayColingan.

The event featured several speakers, including Atty. Ma. Victoria Castillon, Committee Secretary of the House The webinar covered important Committee on Legislative Franchises, who discussed the process of filing for franchise topics related to the process of applying bills, the documentary requirements, and its for a franchise to operate as a provider of electricity in their respective areas.

CONGRESSIONAL FRANCHISE APPLICATION STEP 5 : PRESIDENTIAL ACTION The bill is received by the Office of the President for its action. If approved, the franchise law is enacted.

If there is no action after 30 days from receipt, the bill lapses into law. If vetoed, the bill is transmitted to the House.

STEP 4 : SENATE ACTION The bill, approved by the House, is received by the Senate, and is referred to the Committee on Public Services. The bill then undergoes the same legislative process. Upon its Third Reading approval, a Conference Committee is formed, composed of Members from each House of Congress to reconcile differences on any provisions of the bill. Afterwhich, the Conference Committee then prepares a report to be signed by all the conferees and the Chairman.The signed report is then transmitted to the President.

STEP 3 : HOUSE PLENARY DELIBERATIONS The committee report with the substitute bill is transmitted to the Plenary and referred to the Committee on Rules for consideration on Second Reading. During this period, the bill will be read in the Plenary for sponsorship, debates, proposed amendments, and then approval.

After Second Reading, the bill will be read in the Plenary for Third Reading. On this stage, there will be a nominal voting for the approval of the bill. The approved bill is then transmitted to the Senate for its action.

STEP 2 : HOUSE COMMITTEE DELIBERATIONS The franchise bill undergoes a series of deliberations under the House Committee on Legislative Franchises. Once amended, a substitute bill is created. The committee then approves and releases a committee report.

STEP 1 : FILING OF FRANCHISE BILL & REQUIREMENTS Once a franchise bill is filed, concerned electric cooperative shall submit the documentary requirements to the House Committee on Legislative Franchises. For the complete list of requirements, go to: bit.ly/CFA_Requirements SCAN TO SEE THE REQUIREMENTS