ERC suspends 3% franchise tax on transmission costs

By Alena Mae S. Flores

THE Energy Regulatory Commission said Thursday it suspended the effectivity of the Resolution No. 07, Series of 2011 including the 3 percent franchise tax of the National Grid Corporation of the Philippines on the monthly transmission costs billed to distribution utilities.

It said in a statement it would soon issue a resolution to formalize the new directive. Once effective, the NGCP franchise tax would no longer be passed on to consumers in the following billing month, the agency said.

ERC chairperson Monalisa Dimalanta said the move would help bring down power rates by P0.01 per kilowatt-hour.

“All passed-on, so far, none shouldered by NGCP. Estimate impact P0.01 per kWh,” Dimalanta said.

The ERC unanimously made the decision in a special commission meeting on Aug. 8, 2023.

NGCP was granted a franchise through Republic Act No. 9511 to engage in the business of conveying or transmitting electricity through high voltage back-bone system of interconnected transmission lines, substations and related facilities.

Section 9 of RA 9511 requires NGCP to pay a franchise tax equivalent to 3 percent of all gross receipts derived by NGCP from its operation. Following RA 9511, the commission issued ERC Resolution No. 07, Series of 2011, allowing the inclusion of the 3-percent franchise tax in the monthly

Pag-IBIG Fund ready to provide cash loan as school season begins

PAG-IBIG Fund officials announced on Wednesday that its cash loan, the PagIBIG Multi-Purpose Loan, is ready to assist members with their school-related fees as the academic season starts this month.

The agency said that as of June this year, it assisted 1,182,996 members with their financial needs with the release of cash loans totaling a record P26.17 billion. Of the amount, 13.8 percent or P3.61 billion was released to aid 134,140 members with tuition and enrolment fees and other school-related expenses.

“We at Pag-IBIG Fund recognize that many of our members rely on us for immediate financial assistance. This becomes more prevalent when school season begins. That is why we are always ready to assist our members, particularly those seeking funds to address school-related expenses with our Pag-IBIG Multi-Purpose Loan. All these efforts are in line with the call of President Ferdinand Marcos Jr. to provide our fellow Filipinos the means to gain better and dignified lives,” said Secretary Jose Rizalino Acuzar, who leads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund board of trustees.

Pag-IBIG Fund’s MPL is the agency’s affordable and easily accessible cash loan.

Qualified members can borrow up to 80 percent of their total Pag-IBIG Regular Savings, which consist of their monthly contributions, employer’s contributions and accumulated dividends earned. such as equity capital placements less withdrawals, while the PSA’s foreign investment data do not account for equity withdrawals.

Loan processing is as fast as three days, with the loan conveniently credited to the borrower’s Pag-IBIG Loyalty Card Plus. The proceeds can be used to pay for tuition and other school-related expenses as well as medical expenses, minor home improvement or even serve as capital for small businesses.

The loan is payable in 24 or 36 monthly installments, with the first payment deferred for two months. The Pag-IBIG MPL comes at an interest rate of 10.5 percent per year. In the past years, the agency has returned more than 90 percent of its income, mostly derived from interest on loans, to members in the form of dividends.

The BSP earlier reduced the net FDI forecast this year to $9 billion from $11 billion. It also adjusted the FDI forecast for 2024 to $11 billion from $12 billion in line with the slowdown in non-residents investments globally. Net FDI inflows contracted 23.2 percent to $9.2 billion in 2022 from a record $12 billion in 2021, pulled down by the sluggish global growth and persistently high inflation.

The 2022 net inflows, however, surpassed the target for the year of $8.5 billion.

By Darwin G. Amojelar

CEBU Air Inc., the operator of lowcost carrier Cebu Pacific, said Thursday it rebounded from last year’s loss to post a net profit of P3.73 billion in the first half of 2023.

The airline unit of the Gokongwei Group said this was a reversal of the P9.5-billion net loss it incurred in the same period last year.

The group recorded revenues amounting to P43.551 billion, or 110.6 percent higher than P20.68 billion a year ago.

billing of DUs.

“The commission continuously examines its existing rules and regulations to determine whether the mandates under the Electric Power Industry Reform Act of 2001 are faithfully fulfilled. With the consumers’ interests in mind, as well as upholding the rule of law, the commission resolved to suspend ERC Resolution No. 07, Series of 2011, by unanimous vote,” the ERC said.

NGCP spokesperson Cynthia Alabanza said the company had yet to receive a copy of the resolution. “We will address the matter once we receive the resolution in full,” she said.

NGCP earlier addressed concerns of the Senate Committee on Energy on allegations “of an overly favorable franchise” and its concession.

Pse Index Closing

Thursday,

“The overall increase in revenues was primarily driven by significant increase in passenger volume and flight activities due to the increased demand for travel,” CEB said.

“Additionally, for the six months ended June 30, 2023, most parts of the country continued to be under a more relaxed alert level classification, which enabled the group to resume to its regular pre-pandemic services,” it said.

The airline’s passenger revenues amounted to P30.12 billion in the first half, up 158.2 percent from P11.66 billion last year.

Cebu Pacific attributed the growth in revenues to the 63.3-percent increase in passenger volume from 6.3 million to 10.3 million passengers.

Cargo revenues amounted to P1.99 billion, down by 33 percent from P3.57 billion on lower cargo kilograms flown and lower yield from cargo services.

The group incurred operating expenses of P39.79 billion in the first half, higher by 38 percent than P28.838 billion last year.

“This was mostly driven by the increase in group’s operations due to the easing of COVID-19 restrictions since a material portion of its expenses are based on flights and flight hours,” CEB said.

Flying operations expenses amounted to P16.77 billion, also up 57.6 percent from P10.64 billion in the same period last year.

“This was largely accounted for by higher fuel consumption by 71.4 percent in line with the increased flight activity during the period, which was slightly offset with the decrease in average published fuel MOPS price to $99.26 per barrel from $129.49 per barrel for the six months ended June 30, 2022,” Cebu Pacific said.

PH sees car sales rising 24% to over 75,000 units in 2023

By Othel V. Campos

MITSUBISHI Motors Philippines Corp.

said Thursday it expects to sell at least 75,000 vehicles in 2023, up by 24 percent from the 2022 actual sales of 60,630 units.

MMPC first vice president for marketing Jack Ramirez expressed optimism about hitting the sales target, with the compact SUV Expander and compact sedan Mirage G4 leading the growth.

“We’re aiming for 18-percent market share, but so far, year-to-date, we’re ahead of that,” Ramirez said in a news briefing during the company’s 60th anniversary. The company observes the fiscal year starting April to March of the following year.

MMPC announced several milestones in its 60th year in the Philippines, including the 1.2 million sales backed by the achievement of 800,000th locally-manufactured Mitsubishi unit in the Philippines.

“Our contribution to society extends far beyond the roads. We reached the incredible local production of 800,000 vehicles— a milestone that speaks volumes about our continuous commitment to excellence and innovation. Fondly, we achieved an aweinspiring 1.2 million accumulated sales, as testament to the popularity and continuous trust placed in our brand by the Filipino people,” MMPC president and chief executive Takeshi Hara said.