Lawmakers push Epira law review

Zambales Rep. Milagros Magsaysay. congress.gov.ph photo

LEGAZPI CITY—Two legislators and a former member of the House of Representatives are calling for a review of the Electric Power Industry Reform Act (Epira), particularly its  “anticonsumer” provisions.

Representatives Milagros “Mitos” Magsaysay of Zambales and Jack Enrile of Cagayan, and former Senator Juan Miguel Zubiri of Bukidnon said the Epira Law had not resulted in lower electricity rates and greater power supply for the country because it had failed to encourage greater competition and more efficiency in the power industry.

Magsaysay was here on April 1 for a visit. Enrile and Zubiri came here on April 10 for the Magayon Festival in Albay.

All three hope to run as senatorial candidates of the new coalition United Nationalist Alliance (UNA) in next year’s  elections.

Magsaysay, Enrile and Zubiri said the Epira provisions on the privatization of government power producers like the National Power Corp., the imposition of value added tax (VAT) on energy and fuel products, and the deregulation of the power industry needed to be reviewed.

The “VAT on oil is too good for the government but too bad for consumers, as it triggers spikes [in] fuel [prices], driving up agricultural and other commodity prices,” Zubiri said.

Zubiri urged Congress to scrap the 12 percent VAT on petroleum products, as the tax pushes fuel prices up at the pump.

Zubiri observed that after 10 years of the Epira Law, the prices of fuel have more than doubled, instead of coming down.

Magsaysay said she disagreed with the proposal to scrap the VAT on fuel. She said she preferred to look at “loopholes that weakened the [Epira] law.”

She proposed a 3 percent to 4 percent discount on VAT to reduce the impact of price spikes on consumers.

Enrile said he favored a review of Epira, and urged the Department of Energy (DOE) to find ways to solve the energy crisis in Mindanao.

Enrile called for the development of alternative sources of energy.