Question & AnswerQ&A (ERC Resolution NO. 18, S. 2011)
The Universal Charge is a fee imposed on all electricity end-users to cover costs such as payment for stranded debts and stranded contract costs of the National Power Corporation (NPC), missionary electrification, tax equalization for renewable energy sources, an environmental charge for watershed rehabilitation, and cross-subsidies for up to three years.
The environmental charge is equivalent to one fourth of one centavo per kilowatt-hour (Php0.0025/kWh).
The National Power Corporation (NPC) is mandated to manage the UC-EC fund under existing arrangements.
The UC-EC fund is used solely for watershed rehabilitation and management.
NPC must submit any petition for the availment of the UC-EC related to proposed watershed rehabilitation and management projects on or before March 15 of every year.
PSALM monitors disbursements from the Special Trust Fund (STF) and requires beneficiaries to furnish a certified true copy of the ERC order that states their entitlement to the Universal Charge.
The ERC aims for timely dissemination of information related to the utilization and disbursements of the UC-EC to ensure that the fund's objectives are met and NPC fulfills its obligations.
The resolution took effect 15 days after its publication in a newspaper of general circulation in the Philippines.
Section 34 of Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001 (EPIRA), mandates the imposition of the Universal Charge.
A charge for cross-subsidies is imposed for a period not exceeding three (3) years as part of the Universal Charge.