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The Negros Chronicle - News around Dumaguete City and Negros Oriental, Philippines Post Topic Maravillas: Valencia home subsidy stays

Albeit in a reduced figure and still of unknown form, four councilors of Valencia led by former vice-mayor Bito Maravillas claim that the town may soon be deprived of its royalty share from the sale of geothermal energy but residents will still enjoy a household subsidy not exceeding 100 kilowatt hours monthly.

Councilors Dowie Sy, Romeo Alviola and Elsie Dagoy, who has served in the same capacity for the last 17 years, explain that a new law was signed in 2008 by House Speaker Prospero Nograles, then Senate President Manny Villar and President Gloria Macapagal-Arroyo granting to the Department of Energy, Department of Finance and the Energy Regulatory Board to determine as to what form will the subsidy be given to household beneficiaries taken from the 80 percent royalty share of the local government units. The subsidy may come in the form of rebates, refunds or any other form as deemed by the aforementioned agencies.

By Maravillas’ reckoning, instead of getting P 800.00 monthly subsidy from the municipal government, the new law puts a cap of not more than 100 kilowatt hours or just P 500.00 per household host communities.

Furthermore, the privatization of the Philippine National Oil Corporation now owned by the Lopez Group of Companies and renamed Energy Development Corporation exempts the firm from paying to the host LGUs royalty for it has now ceased to be a Government Owned and Controlled Corporation.

The municipality of Valencia gets an annual royalty share of P127 million paid for by the then PNOC in four quarters. The councilors claim that with this law, Valencia is no longer expected to receive a share in the royalty as this will be submitted to the DOE which together with other agencies may determine as to what form the subsidy be given to each household.

Maravillas insists that by 2010, Valencia should no longer expect to get its royalty share from the EDC, which may result to its demotion from a first class municipality back to third class as the annual income is expected to shrink drastically.

Larry

 

Yah, good things don't last forever. But maybe a new local tax can be created just for the EDC.

 

Not a good suggestion Pedro...the tax will still be passed on to the consumers.

 

Probably you're right, one way or the other.
(Actually, EDC sells the steam it produces to NPC(Napocor)'s power stations, who then sell the power, produced by the steam generators to whoever wants to buy it, eg Noreco 1 & 2 etc. The remainder is fed into the national grid, via the submarine cables like Amlan to Cebu, Bacolod to Iloilo etc.)

 

That's why the power goes out! It must be because of the cheap extension cords they are using! :D