The Electricity Act of ‘09

Published by the Visayan Daily Star Publications, Inc.

NINFA R. LEONARDIA Editor-in-Chief & President

CARLA P. GOMEZ Editor GUILLERMO TEJIDA III Desk Editor NANETTE L. GUADALQUIVER Busines Editor NIDA A. BUENAFE Sports Editor RENE GENOVE Bureau Chief, Dumaguete MAJA P. DELY Advertising Coordinator

CARLOS ANTONIO L. LEONARDIA Administrative Officer

The Electricity Reduction Act of 2009 that was proposed this year by Sen. Juan Ponce Enrile is a good legislation that will benefit majority of the Filipino people. The purpose of the bill is laudable.

However, the objection of members of the Alliance of Geothermal Energy Producing LGUs that are hosting renewable energy generation in the country will somehow delay its approval.

The AGEPL passed a resolution objecting to the ERA 2009 calling it unfair, unreasonable and inequitable to host LGUs of natural wealth as it nullifies the benefit afforded them by law as provided in Section 7, Article .X of the Constitution of the Philippines.

Section 7 gives another source of revenue for local governments such as a share in the proceeds from the exploitation and development of natural resources found within the locality. And this can take the form of direct benefit for the population coming in the form of cheaper electric power rates for energy sourced in the locality.

The ERA 2009 legislation which is now pending at the Senate and seeks to reduce the LGUs royalty shares from 60 percent to three percent over the remaining duration of their respective service contract, is to no, a good piece of legislation.

We expect the measure to help greatly in lowering the cost of electricity in our country. Consumers will be benefited by it, and not just the host locality where the geothermal power plant is located.*