Mayor seeks restoration of power royalty fees

DUMAGUETE CITY, Philippines  – Mayor Enrique Gonzalez, Jr. of Valencia town in Negros Oriental is hoping that the province’s three congressmen will push for the amendment of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) to allow the return of the royalty fees from the power transmission and generation companies operating in the province.

Gonzalez said the EPIRA, which was passed during the administration of then President Gloria Macapagal-Arroyo, was intended, among other provisions, to bring down electricity rates and improve the delivery of power services.

This was however not realized despite the implementation of the EPIRA and the removal of the royalties paid by the power utilities the past few years, and the cost of power has even gone up instead over the same period, he said.

Only Congress can amend the law, Gonzalez said, as he disclosed that Rep. Henry Pryde Teves (3rd district) has assured the mayor of taking action on the issue by next year. “We are just following the law,” said the mayor in reaction to media reports that some quarters were questioning the absence of the royalty fees.

Millions of pesos in royalty fees were paid each year by the former National Power Corporation (now Green Core Geothermal, Inc. or GCGI) and the former Philippine National Oil Company (now the Energy Development Corporation or EDC) in Valencia, Negros Oriental prior to the privatization of the two firms and the EPIRA implementation, Gonzalez said.

The royalty taxes were paid to the provincial government, the municipal government of Valencia, and the host villages of Caidiocan, Malaunay and Puhagan, for the harnessing of geothermal energy in Valencia, home to the 192-MW Palinpinon geothermal power plants.

Gonzalez said that since the payment of royalty fees had been halted, the local government of Valencia has instead been collecting business and real property taxes from Green Core and EDC.

Green Core is paying at least P40-million in real property tax each year while negotiations are still ongoing with EDC for the same purpose, the mayor said, adding that, for business taxes, the Valencia LGU is collecting a total of about P26-million from Green Core and EDC each year.  (FREEMAN)