Enrile insists: Power reform bills remain LEDAC priorities

Senate President Juan Ponce Enrile came out strongly today to clarify that Senate Bills 3147 and 3148, or the Uniform Franchise Tax Act and the Electricity Rate Reduction Act, respectively, remained to be priority legislative measures after last week's Legislative-Executive development Council (LEDAC) meeting. Enrile debunked as inaccurate earlier news reports indicating that he has, in fact, agreed to the deferment of the twin power reform bills he has authored. "Nothing can be farther from the truth, I shall never agree to the deferment of these twin bills which I know are critically needed not only to provide much-needed economic relief to electricity consumers, but more importantly, to serve as an economic stimulus that will make our industries more competitive during these very trying times."

"The LEDAC remains committed to the enactment of Senate Bills 3147 and 3148 into law before the year ends," said Enrile in a statement. Representative Exequiel B. Javier, Chair of the House Committee on Ways and Means, shares the Senate President's advocacy and has, in fact, set into motion the House version of Enrile's proposed bills. House Speaker Prospero C. Nograles also confirmed this by saying that he will "work for the bills' passage" noting that these are already in the pipeline.

The Senate Leader also clarified that discussions on the possible deferment of his Senate bills were not broached by President Gloria Arroyo, as earlier reported, but only by Finance Secretary Margarito Teves and Energy Secretary Angelo Reyes. Enrile clarified, however, that all the concerns raised by Secretaries Teves and Reyes during the LEDAC have long been addressed in the deliberations before the Senate Committee on Energy. "The Senate Committee on Energy has established that the Department of Energy's claim that the impact of the power reform bills will not significantly impact on the industrial sector is inaccurate and based on erroneous data. The Department of Finance, on the other hand, will oppose any legislative measures that will in anyway reduce existing government revenue sources."

Enrile stressed that the power reform bills will directly result in significant power cost reduction which will range from P1.34-P2.00 per kWh for business or industrial users, and at least P1.00 per kWh for residential consumers.

Enrile's power reform bills have earned multi-sectoral support. The removal of excessive taxes on electricity consumption has been consistently advocated by the Gabriela Women's Party and the National Association of Electricity Consumers for Reform or Nasecore.

Other business groups have been pushing for immediate government action on Enrile's power reform bills. Philippine Chamber of Commerce and Industry (PCCI) President Edgardo Lacson has expressed particular support for Senate Bill 3148 which he said will enhance the competitiveness of business enterprises. Lacson expressed optimism that the proposed bills will be passed, saying that "we will make a last appeal to the President [Arroyo]". The PCCI, together with the joint Foreign Chambers, the Philippine Exporters Confederation and the Employers' Confederation of the Philippines have previously presented to the LEDAC a list of policy recommendations for immediate adoption that included Senate Bill Nos. 3147 and 3148.

In a separate statement, the Semiconductors and Electronics Industry of the Philippines, Inc. (SEIPI) urged President Arroyo to certify the power reform bills as priority bills to ensure immediate passage. "We hope that Malacañang and Congress will certify these proposed measures as priority bills for power rates in the country to be lowered and to result in making our industries more competitive against neighboring Asian countries," SEIPI President Ernie Santiago stated.