 JALA,
LIM, LAGUNAY | | The
city and provincial governments are again preparing for what seems a futile battle
against an application of Bohol Light Company Inc. to recover from consumers franchise
taxes it paid since 2001. |
An
opposition started by City Mayor Dan Lim has drawn the support of Gov. Erico Aumentado,
3rd District Rep. Adam Relson Jala and the alumni association of Holy Name University.
A
public hearing is set 9 a.m. tomorrow at the Governor's Mansion with Commissioners
Rauf Tan and Jose Reyes of the Energy Regulatory Commission (ERC) presiding over
the motion of Bohol Light to impose an increase of monthly electric billings in
order to recover franchise taxes paid to the national government from 2001 to
2006 and the city government from 2002 to 2008.
Bohol
Light's application to increase its electricity bills to recover the costs of
franchise taxes however is sanctioned by the ERC.
| | | The
Commission has issued guidelines where private utilities are provided a mechanism
to recover franchise taxes imposed by the local and national government.
In
an interview with the Chronicle, Jala said franchise taxes of a power distribution
utility company cannot be passed on to its consumers.
The
solon said, unlike the value added tax (VAT) which can be levied on goods and
services, a franchise tax has to be paid by the franchise holder that exercises
exclusive rights and benefits from the operation of the company. |
There is
also a need for the ERC to resolve first a pending application of Bohol Light
on the unbundling of its rates and the provisional increase of its rates which
was granted by the regulatory body, Jala said.
The
congressman filed House Bill 3355 on December last year seeking the revocation
of the franchise issued by the National Electrification Commission (NEC) to Bohol
Light. It is awaiting review and discussion at the House committee on legislative
franchises.
The
franchise in question was issued after the Electric Power Industry Reform Act
(EPIRA) became a law. Under the EPIRA Law, Congress is given the sole authority
to issue franchises to power distribution utilities.
Provincial
legal officer Atty. Handel Lagunay yesterday conveyed the "vehement opposition"
of Aumentado on Bohol Light's plan to pass on to its consumers the franchise taxes
paid to the city and national government.
Lagunay
cited ERC Case 2001-763 and ERB Case 97-47 which showed the consistent position
of the provincial government on petitions for power rate increases applied by
Bohol Light.
The
provincial attorney bared that Aumentado is currently discussing with BLCI management
to implement refunds for electricity meter deposits.
Atty.
Raul Barbarona and Marietta Corales of the Holy Name University Alumni Association,
likewise relayed the position of its board of directors opposing the move of Bohol
Light to pass on the burden of the tax to its consumers.
Under
the unbundling of rates mandated by the EPIRA Law, franchise tax is listed among
recoverable costs to be itemized in the electricity billing.
An
ERC approval is needed before a utility can impose the pass-on increase. | 
