Quote for the day, May 18, 2008

May 17, 2008 at 10:08 pm 2 comments

“First of all, what is important is the objective of the President to lower the power rate (for the benefit) of our countrymen. That’s the number one objective.”
— Deputy presidential spokesperson Anthony Golez, in a Inquirer report

Arroyo can make the initial first step: remove the EVAT taxes it slaps on the band of moving electrons called electricity
a) as it is generated by NAPOCOR and the IPPs
b) as it is being transmitted by TRANSCO over its high voltage transmission lines
c) as it is being distributed by DUs (like Meralco and Visayan Electric) until it reaches our homes.

In addition:

a) remove the EVAT slapped on the system loss charged by DUs (distribution utilities) to consumers
b) remove the EVAT on the local franchise tax, which is really a tax on a tax
c) remove the EVAT on the amount (lifeline rate subsidy) that consumers using 101 kwh and more donate to subsidize the poorer consumers using less than 101 kwh. They donate, yet they are taxed for their good deed.

And since the Generation charge is more than 50% of our bill:

Arroyo should remove the tax on the fuel used to run the power plants.Since the fuel is taxed and the cost of the fuel is factored into the Generation charge, when the Arroyo slaps a tax on the Generation charge it includes taxing too the tax on the fuel.

With all those taxes removed, our bills could eaisly drop by, at the very least, 10%, as you can see in your bill, and up to more than 20%. What a relief it would be.

It does not require rocket science to know all of the above, so why is Arroyo not doing it?


Entry filed under: 1. Tags: , , , , , , .

The Meralco Electric Bill Equation Garcia passing on GSIS “system losses” to members

2 Comments Add your own

  • 1. charles xavier  |  May 19, 2008 at 6:58 am

    I wish, Sir, that you will be part of the Electrical Engineers/experts from the University of the Philippines which Senator Defensor-Santiago will consult to evaluate the claims of Meralco and NAPOCOR.

    The proposal to remove or reduce the taxes and royalties from the generation and distribution of electricity seems also the most effective way of immediately reducing electricity cost. I just wonder why the esteemed members of the senate and the house of representatives are not keen on this proposal but are hell-bent in incriminating meralco.

  • 2. Edward M. Gasambelo, PEE/RMP  |  May 19, 2008 at 11:16 pm

    Just read your topic from The Philippine Star today May 20, 2008. Sir, I have admiration over your rate breakdown contributions. Hoping it can spark discussions over concerned parties. On my end, I will bring this matter to our local electric cooperative for their position. More power and good health to you. Thank you and keep up the good work.

    Bacolod City


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