Question & AnswerQ&A (Republic Act No. 11371)
Republic Act No. 11371 is known as the 'Murang Kuryente Act'.
The policy is to protect public interest by ensuring reliable, secure, and affordable electric power supply to consumers, and to implement policies that ensure transparent and reasonable electricity prices by minimizing universal charges for stranded contract costs and stranded debts.
The Malampaya fund refers to the existing and future government share from the net production proceeds of the Malampaya Natural Gas Project, forming part of a Special Account in the general fund used to finance energy resource development and exploitation programs.
The Joint Congressional Energy Commission (JCEC) shall exercise oversight powers over the implementation of the Act.
Two hundred eight billion pesos (₱208,000,000,000) from the net national government share of the Malampaya fund are allocated for these payments.
Stranded contract costs of the National Power Corporation (NPC) refer to the excess of contracted cost of electricity under eligible independent power producer contracts over the actual selling price of the contracted energy output, approved as of December 31, 2000.
Stranded debts refer to unpaid financial obligations of the NPC not liquidated by proceeds from the sales and privatization of NPC assets.
Upon effectivity and after promulgation of the implementing rules and regulations, no new universal charges for stranded contract costs and stranded debts shall be collected, and these charges may be covered by the allocated Malampaya fund.
The Department of Energy (DOE) and Department of Finance (DOF), in consultation with the Department of Budget and Management (DBM), Bureau of the Treasury, and Power Sector Assets and Liabilities Management Corporation (PSALM), shall promulgate the rules and regulations.
PSALM must submit an annual projected cash flow statement and actual cash flow statement of stranded contract costs, stranded debts, and anticipated shortfalls to DOE, Energy Regulatory Commission, DOF, DBM, and JCEC. The projected statement is due on or before June 30 of the preceding year, and the actual statement on or before June 30 of the succeeding year.
The Act shall take effect fifteen (15) days after its publication in the Official Gazette or a newspaper of general circulation.
The separability clause provides that if any provision is declared unconstitutional or invalid, other unaffected parts shall remain in full force and effect.
Any remaining and future proceeds exceeding the allocated amount shall remain in the Special Account to finance energy resource development and exploitation programs pursuant to Presidential Decree No. 910.