Question & AnswerQ&A (Republic Act No. 10376)
The main purpose of Republic Act No. 10376 is to condone the interest on the paid principal account of Fuel Compensating Charge/Incremental Cost Charge (FCC/ICC) of the Zamboanga del Norte Electric Cooperative, Inc. (ZANECO) payable to the National Power Corporation (NPC).
RA 10376 specifically addresses the Fuel Compensating Charge/Incremental Cost Charge (FCC/ICC) of ZANECO.
The law refers to the principal account of FCC/ICC amounting to Thirty million five hundred fifty-seven thousand six hundred twenty-two pesos and thirty-five centavos (P30,557,622.35).
No, RA 10376 excludes the principal amount of the FCC/ICC from condonation as it has already been paid by ZANECO to NPC.
The interest earned on the paid principal account of FCC/ICC of ZANECO incurred from May 1991 to December 1993 that remains unpaid is condoned.
The interest was condoned because it was incurred without fault of ZANECO.
The FCC/ICC was payable to the National Power Corporation (NPC) and was subsequently transferred to the Power Sector Assets and Liabilities Management (PSALM) Corporation.
The condonation permanently relieves ZANECO from the payment of the said interest.
The law took effect fifteen (15) days after its publication in at least two (2) national newspapers of general circulation.
It was approved by President Benigno S. Aquino III on March 5, 2013.