ERC ruling on Bohol Light franchise tax

The results of the much-awaited petition filed by the City Government against the application of Bohol Light Company Inc. (BLCI) to recover franchise taxes paid to the national and local governments, will be known this week.

Commissioner Rauf Tan of the Energy Regulatory Commission (ERC) said that their ruling will be out on Bohol Light’s motion to charge in monthly billings some P36.5 million in franchise taxes to its consumers. Tan said monthly billings of Bohol Light consumers already bears the add-on charges of current franchise taxes the utility is paying to the national and local governments.

If Bohol Light’s motion is granted by the ERC, an estimated additional 16-centavos per kilowatt/hour will be charged to electric consumers. The charges represent P22.1 million paid by the company to the national government and P14.4 million to the local government from 2001 up to 2008. The cost recovery scheme will be spread over three years, according to Bohol Light.

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