DOE pushes for renewable energy bill

The Department of Energy (DOE) is pushing for the passage of the proposed New and Renewable Energy (NRE) Bill before Congress adjourns this December, Energy Undersecretary Cyril del Callar said yesterday.

In a multi-sectoral conference on alternative sources of energy sponsored by the Asian Development Bank (ADB) and other environment groups, Del Callar said this bill is part of the Arroyo administration’s legislative agenda.

"We hope that this law will be passed within this year or before the Congress adjourns this December," he said.

Del Callar said the law would provide some fiscal incentives to the private sector in developing indigenous sources of energy and at the same time correct some "current biases" on tax imposed on imported fossil fuel and indigenous power.

At present, he said the tax imposed on natural gas amounts to 42 centavos per kilowatthour of electricity produced while taxes on diesel are only at eight centavos.

"What we can do is to address the distortion. The DOE, in fact, was mandated, together with industry players, as part of IRR of RA 9136 (Electric Power Industry Reform Act), to effect. Sec. 35 and 34 of the Act that is to equalize the taxes and royalties and returns," he said.

Del Callar, however, said they are studying how to equalize the taxes slapped on these sources of energy without prejudicing the overall budget of the National Government.

"We are exploring all options. We’re awaiting all inputs and recommendations of the DOF (Department of Finance) on how to effect this equalization," he said.

He added that the move should not bloat the country’s budget deficit. "We are looking at equalization or parity. It should be out by December. But it should be revenue neutral and should not affect the budget (of the government)," he said.

He said the NRE bill will be on top of the Micro-Hydro Bill that seeks to give zero tax on all micro-hydro initiatives.

The NRE bill was actually filed in Congress last year. The DOE had already revised the said bill to confirm with the provisions of EIRA. – Donnabelle Gatdula