FOURTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES
)
Third Regular Session
)
SENATE
S.B. No.
3419
"
Introduced by Senator JUAN PONCE ENRILE
EXPLANATORY NOTE
Faced with the economic challenge brought about by the second wave of
the oil crisis in 1978, the Batasang Pambansa or the National Assembly ratified
Batas Pambansa BIg. 36, entitled "AN ACT IMPOSING AN ENERGY TAX ON
ELECTRIC POWER CONSUMPTION", as an energy conservation measure. The
law was enacted in September 7, 1979 and, after three decades, continues to
be in effect today.
In line with the objective of conserving energy and promoting its efficient
utilization
thereof,
Batas Pambansa BIg.
36 imposed an
energy tax on
residential consumers which utilizes more than 650 kwh monthly, the cost of
which increases from P 0.10 per, kwh to as much as P 0.35 per kwh as power
consumption increases.
In 2008 alone,
the
government collected about P150
million
from
household consumers all over the country under the Energy Tax. Yet very few
probably even know that this law exists and is still applied to our consumption
costs.
While the intention of the law is to discourage the wasteful use of energy,
Batas Pambansa BIg. 36, however, is deemed unnecessary and redundant as
other rate mechanisms are already in place which may also serve as incentives ~
to achieve energy conservation.
The existing residential electricity tariffs are
already structured to encourage 'energy conservation. In the Meralco franchise
area, the average residential usage of electricity today is about 180 kWh.
The
figure is likely lower for households outside Meralco's coverage.
In the existing unbundled rates of Meralco, for example, the distribution
charge to households progressively goes up as consumption increases, as
shown below:
-
Consumption Bracket
Meralco Residential Distribution
Charge Ill/kWh)
-
1-200 kWh
0.6917
-
201-300 kWh
0.9953
301-400 kWh
1.2816
Over 400 kWh
1.7803


As a principle, public utilities ought not be used as sources of public
revenue as these public utilities render public services to the taxpayers.
It is
high time to review and harmonize existing laws and, if necessary, repeai those
which are already redundant or which have failed to achieve its stated
objective.
In
consideration
of the
foregoing,
this
bill
seeks
to
repeal Batas
Pambansa Big. 36 to discontinue the imposition of the energy tax, which will
directly translate to lower power rates and will provide immediate relief to
affected consumers. The immediate passage of this bill is earnestly sought.
I


FOURTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES
)
Third Regular Session
)
Sl,:( f1G'r/',f{{
SENATE
S.B. No. 3419
Introduced by Senator JUAN PONCE ENRILE
AN ACT
REPEALING
BATAS
PAMBANSA
BILANG
36
"AN
ACT
IMPOSING
AN
ENERGY TAX ON ELECTRIC POWER CONSUMPTION"
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
1
Section 1. Declaration of·State Policies. - It is the policy of the State to
2
ensure the quality, reliability, security, and affordability of the supply of
3
electric power. The State likewise recognizes the need to protect the consumers
4
from excessive and unreasonable impositions that will unduly provide an
5
additional financial burden to the public.
6
7
Section 2. Repealing Clause. - Any provision of law to the contrary
8
notwithstanding, Batas Pambansa Bilang 36, entitled "An Act Imposing An
9
Energy Tax on Electric Power Consumption" is hereby repealed.
10
. 11
Section 3.
Effectivity Clause. - This Act shall take effect fifteen (15)
12
days after its complete publication in the Official Gazette or in at least two (2)
13
newspapers of general circulation.
14
15
Approved,