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Public Consultation on Murang Kuryente

Press Release: The Department of Energy (DOE), in collaboration with the Department of Finance (DOF), conducted a public consultation last Friday (22 November) on the draft Implementing Rules and Regulations of Republic Act (RA) No. 11371,  “An Act Reducing Electricity Rates by Allocating a Portion of the Net National Government Share from the Malampaya Natural Gas Project for the Payment of the Stranded Contract Costs and Stranded Debts”, otherwise known as the Murang Kuryente Act (MKA), which was enacted into law on 8 August 2019 and took effect on 29 August.

Pursuant to RA 11371, the DOE and the DOF, in consultation with the Department of Budget and Management, the Bureau of the Treasury, and the Power Sector Assets and Liabilities Management Corp. (PSALM), shall, with 90 days from the effectivity of the law, promulgate its implementing rules and regulations.

MKA is envisioned to help prevent further increases on electricity rates stemming from the imposition of universal charges, as allowed by Republic Act. No 9136 or the EPIRA, to cover PSALM stranded debts and stranded contract costs with a total estimated amount of 87-centavos per kWh. MKA allocates PhP208 billion from the government’s shares or income generated from the exploration and development of energy resources in the country, in relation to Presidential Decree (PD) No. 87, the Oil Exploration and Development Act of 1972.

Undersecretary Felix William B. Fuentebella, in his welcome message, stressed that this initiative has been recommended by the Cabinet since 2016. However, as the use of funds, pursuant to PD 910, is limited to financing energy resource development and exploitation programs and projects of the government, the passage of RA 11371 was needed to allow for the funding appropriation for other purposes, such as that of the Murang Kuryente Act.

The consultation was attended by representatives from Senate, other government agencies, consumer and business groups and electric power industry participants.

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