ERC approves pass-on taxes to consumers

Published February 8, 2021, 6:30 AM
The Energy Regulatory Commission (ERC) has approved the integration of pass-through taxes in the electric bills that will be dispatched by distribution utilities (DUs) to their customers.
In a recently issued resolution, the regulatory body has allowed the pass-on of taxes being levied to private DUs and electric cooperatives, including real property tax (RPT), local franchise tax and business tax.
ERC defended its decision, citing its mandate to allow recovery of pass-through taxes in the bills shall take effect immediately following compliance to publication requirements for the new rule.
Energy Regulatory Commission
(ERC FACEBOOK / MANILA BULLETIN)
The power industry regulator stipulated that its ruling had been anchored on a Supreme Court decision in August 2015, wherein it rendered that power utility giant Manila Electric Company (Meralco) may qualify to recover RPT on certain machinery used in its operations, as based on the prescriptions of the Local Government Code.

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