The controversial measure, to be known as the Electric Industry Act (Republic Act 9136), and the P10.9-billion supplemental budget for 2001 (RA 9137) will be signed in a ceremony at Malacañang to be led by the President, and outgoing Senate President Aquilino Pimentel Jr. and Speaker Feliciano Belmonte Jr.
Also expected to attend the rites are the principal authors and sponsors of the two measures, the last two major legislative outputs of the outgoing Congress.
The Electric Industry Act paves the way for the privatization of the debt-laden, state-owned National Power Corp. (Napocor) which Malacañang said would be the first step in bringing down electricity rates.
The House of Representatives ratified the landmark measure last week before the end of a special four-day session called by Mrs. Arroyo. The Senate, on the other hand, approved the measure at the resumption of regular sessions last Monday.
The President had expressed her gratitude to Congress members for crossing party lines and finally approving the controversial power sector reform bill, which has seen various versions being deliberated upon by Congress since the Ramos administration.
In her weekly press conference at Malacañang yesterday, Mrs. Arroyo said she would make her formal statement on the new law after the signing.
One of the sweeteners in the bill is a 30-centavo per kilowatt-hour reduction in power rates effective for four years. However, the government would have to shoulder some P200 billion in debt left over by Napocor.
Another key item in the measure is the review of Napocor’s contracts with independent power producers (IPPs) which sell all their power to the state firm.
The measure will take effect as a law 15 days after being signed by the President. – Marichu Villanueva