The Peninsula Electric Cooperative (Penelco) announced on its social media page that it will no longer charge the 3% franchise tax to its consumers starting from the billing month of September 2023.

Their statement states that this is in compliance with Resolution No. 10, Series of 2023, issued by the Energy Regulatory Commission (ERC) on August 15, 2023. The resolution suspends the inclusion of the national franchise tax of the National Grid Corporation of the Philippines (NGCP) in the total monthly transmission cost billing of distribution utilities (DUs). The resolution states that NGCP must cease charging the 3% franchise tax starting from its next billings to customers after August 15, 2023. This will cover the supply period of July 26, 2023 to August 25, 2023 and the succeeding months thereafter.

According to the ERC, the suspension of the franchise tax is intended to provide relief to electricity consumers amid the COVID-19 pandemic and its economic impact. The ERC also said that it will conduct a review and evaluation of the legal basis and validity of the imposition of the franchise tax by NGCP.

Penelco said that it will abide by the resolution and adjust its billing accordingly. It also advised its consumers to monitor their bills and report any discrepancy or concern to their office.

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