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VOL. LIII No. 053
City of Tagbilaran, Bohol, Philippines
Wednesday, November 19, 2008

LINKS
FRONT PAGE STORIES
Drainage water analysis out
ERC ruling on Bohol Light franchise tax
P1-B Capitol budget gets initial approval
Trained dive guide needed
Charges vs. Com. Oliva
OPINION
Coffee and Chiaroscuro
A Look At Life
Fr. Roy Cimagala
Juan L. Mercado
LINKS
 

 

ERC ruling on Bohol Light
franchise tax

  
 

After five months of waiting, the fate of a petition filed by the city government against the application of Bohol Light Company Inc. (BLCI) to recover franchise taxes paid to the national and local governments will be known this week.

Commissioner Rauf Tan of the Energy Regulatory Commission (ERC) told the Chronicle on Friday that their ruling will be out on Bohol Light's motion to charge in monthly billings some P36.5 million in franchise taxes to its consumers.

Tan said monthly billings of Bohol Light consumers already bears the add-on charges of current franchise taxes the utility is paying to the national and local governments.

   

If Bohol Light's motion is granted by the ERC, an estimated additional 16-centavos per kilowatt/hour will be charged to electric consumers.

The charges represent P22.1 million paid by the company to the national government and P14.4 million to the local government from 2001 up to 2008.

The cost recovery scheme will be spread over three years, according to Bohol Light.

Tan said even big players in the power industry were already granted authority by the Commission to charge franchise taxes on its consumers.

He added that the ERC have decided during a second public hearing last September at the Governor's Mansion to set aside the pre-judicial question raised by Tagbilaran Mayor Dan Lim who led oppositors to the application of Bohol Light.

According to Tan, the Commission leaves to the courts to decide on the matter regarding the authority and legal personality of Bohol Light to charge franchise taxes due to its questionable franchise which was issued by the National Electrification Commission (NEC).


 
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