Joint congressional body eyes changes in power reform law

The Joint Congressional Power Commission (JCPC) is looking at the possibility of filing a joint resolution or an amendatory bill as soon as possible to effect certain changes in the Electric Power Industry Reform Act (EIRA) or Republic Act 9136.

JCPC co-chairman Rene Cayetano, in an interview, said the 14-member commission agreed that there are some necessary amendments to correct "ambiguities" in the law.

Cayetano said the areas that need to be reviewed include coverage of the universal charge, lifeline rate, value-added tax and cross subsidies.

For instance, he said they have to clarify what constitutes the lifeline rate, "Right now it is Manila Electric Co. (Meralco) giving voluntarily, it is mandatory regardless of where you are but the question is what will be the basis. In Metro Manila, the basis of Meralco is if you are consuming 50 MW and below a month. They consider that subsidized rate. But in the law. There is none. For me, I put in the law they would pay lower. The problem would be the standard of determining which household to be included under the lifeline rate," he explained.

According to Cayetano, they have to correct some provisions of the EIRA even if the IRR that would govern the implementation of the EIRA had just been signed. "All of these will be given light. I think we will file a joint resolution or amendatory bill as soon as possible," he said.

Rep. Alipio Cirilo Badelles, co-chairman of the JCPC, on the other hand, expressed fears that the revisions in the power bill might signal a "revamp" of the entire EIRA.

"It could happen. But we need to study first," Badelles said, when asked if the proposed amendments warrant an overhauling of the EIRA.

Badelles said they need to change some provisions of the said law since these are considered "not practical."

"We have agreed on the amendments to propose. But for the meantime, the remedy in the IRR is to defer and/or suspend the imposition because the... IRR cannot change the law," Badelles explained.

The solon said there are really no major objection from the industry but as they reviewed the law, they found some questionable items. "There was really no objection but we were requested to study it," he said.