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Jan 19, 2018 @ 21:37

Aboitiz downplays coal tax hike impact on power rates

 

A consultant of the Aboitiz Group of Companies assured consumers that the Tax Reform for Acceleration and Inclusion (TRAIN) would have a minimal impact on the price of electricity derived from coal.

Arturo Milan said the imposition of excise tax under TRAIN on coal should not cause alarm especially for consumers of Aboitiz-owned Davao Light and Power Company, Inc. (DLPC), the electricity provider in Davao City and its service areas in Davao del Norte,

He said electricity derived from coal would mean additional three centavos per kilowatt hour in 2018, six centavos in 2019, and nine centavos in 2020.

The subsequent rate may go up or down depending on the price of coal.

In Davao City, Milan said the average household consumption of electricity is at 200 kilowatts per month, which would cost about P60 with the additional tax of three centavos.

Mindanao Development Authority (MinDA) assistant secretary Romeo Montenegro said was closely monitoring the situation in terms of electricity impact in Mindanao, considering that 70 percent of the supply for energy was sourced from coal-fired plants.

But he said “the island must not rely heavily on coal and make sure we can integrate renewable energy in terms of fuel and energy so that we are not subject to market volatility on the exchange rate fluctuation, the excise tax and possible levy of export from outside sources”.

Montenegro said Mindanao was actively looking for broader sources of coal which it primarily obtained from East Kalimantan, Indonesia. (PNA)

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