Question & AnswerQ&A (Republic Act No. 11371)
The short title of Republic Act No. 11371 is the "Murang Kuryente Act."
The primary policy is to protect public interest by ensuring the provision of reliable, secure, and affordable electric power 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 JCEC refers to the congressional commission constituted under Section 62 of Republic Act No. 9136, as amended by Republic Act No. 11285, known as the Electric Power Industry Reform Act of 2001 and the Energy Efficiency and Conservation Act, respectively.
The Malampaya fund refers to the existing and future government share from the net production proceeds of the Malampaya Natural Gas Project, which is part of a Special Account in the general fund used to finance energy resource development and exploitation programs pursuant to Presidential Decree No. 910.
Stranded contract costs refer to the excess of the contracted cost of electricity under eligible independent power producer contracts over the actual selling price of the contracted energy output in the market, for contracts approved by the Energy Regulatory Board as of December 31, 2000.
Two hundred eight billion pesos (P208,000,000,000.00) of the proceeds of the net national government share from the Malampaya fund are allocated for the payment of stranded contract costs and stranded debts transferred to and assumed by the PSALM.
The Power Sector Assets and Liabilities Management Corporation (PSALM) is responsible for managing the payment of stranded contract costs and stranded debts as transferred and assumed under Republic Act No. 9136.
PSALM is required to submit an annual projected cash flow statement and an annual actual cash flow statement on stranded costs and debts, along with its payment schedule. 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 JCEC is given oversight powers over the implementation of the Murang Kuryente Act upon its effectivity.
Upon the effectivity of the implementing rules and regulations, no new universal charges for stranded contract costs and stranded debts shall be collected.