Nograles puts premium on oil, power issues

11/09/2009

The House of Representatives is ready to initiate possible and necessary legislative reforms to rid policies and laws governing the power and oil industries of existing intrinsic flaws that tend to undermine national interest.

“This is our constitutional duty,” Speaker Prospero Nograles said as Congress resumes sessions Monday after a three-week respite since Oct. 16.

Last Friday, Nograles laid down the list of legislative already in their advance stages in the legislative mill, bannered by the proposed P1.541-trillion national budget for 2010.

In the wake of disturbing pricing puzzle in the oil and power industries, the House leader has mobilized the various congressional committees to fast tract the different measures still in their wings for proper disposition.

“The committee on energy headed by Rep. Mikey Arroyo and the House ways and means panel led by Rep. Exequiel Javier are on top of these things and we have been in constant consultations even during the break. I have also been regularly briefed by appropriations panel chairman Junie Cua relative to the GAA (General Appropriations Act),” Nograles said.

Among the vital measures that need to be fast tracked are:

1) House Bills 1628, 1936 and 2931 – “An Act Ordaining the Development of the Downstream Natural Gas industry, consolidating for the purpose all laws relating to the transmission, distribution and supply of natural gas and for other purposes.”

Consolidated/substitute bills are also being molded by the energy and appropriations committees.

Principal authors included Reps. Aurelio Gonzales Jr., Juan Miguel “Mikey” Arroyo and Salvador Escudero III.

2) HB 6207, 6398 and 6646 – “An Act directing the reduction of electricity rates through the utilization of the government share in the discovery, exploration, development and/or production of indigenous sources of energy for the purpose of lowering the cost of electricity,” authored by Reps. Salvacion Ponce-Enrile, Jonathan dela Cruz, Monico Puentevella and Ma. Theresa Bonoan-David.

The bills intend to lower electricity rates by lowering or removing such government shares/royalty in the exploration, development and production of these indigenous energy resources.

3) House Bills 346, 592, 1320, 1724, 3029, 3030, 4262 and 4890 – “An Act amending Republic Act 8479, otherwise known as the Downstream Oil Industry Deregulation Act.” The original separate bills were authored by Deputy Speaker Eric Singson, Reps. Joseph Emilio Abaya, Danilo Suarez, Liza Maza, Luzviminda Ilagan, Saturnino Ocampo, Teodoro Casiño, Rufus Rodriguez and Narciso Santiago III.

The proposals are now being consolidated by the committee on energy. The objective is to increase competition at the retail level and strengthen the power of the Department of Energy.

Arroyo said the retail industry has to be freed from the influence of big oil companies which own most of the retail outlets all over the country.

“It seeks to ensure transparency in the pricing of oil products by expanding the powers of the Department of Energy so it may effectively carry out its mandate to inform and protect the public from any illicit practices in the industry,” the authors said.

4) House Bills 6208, 6351 and 6490 — “An Act imposing a uniform franchise tax on distribution utilities enjoying legislative franchise in lieu of any and all taxes collected by the government with the end view of reducing the cost of electricity,” authored by Reps. Ponce-Enrile, Puentevella and Diosdado “Dato” Arroyo.

The proposals are now being consolidated by the committee on ways and means.

The bill seeks to impose the three percent franchise tax on the gross distribution income derived by electric distribution utilities under the Distribution Utility’s legislative franchise.

As proposed, the franchise tax shall be in lieu of all taxes, such as income tax, value added tax, business tax, licenses, and all other fees and charges of any kind and nature or description levied by any government authority, both national and local.

Nograles said the various House committees will pursue vital reforms along the chamber’s priorities such as infrastructure development, taxation and tax collection, labor and overseas Filipino workers’ welfare, Bangko Sentral ng Pilipinas and finance reforms and other vital socio-economic initiatives.

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