ERC to rule on franchise tax; Critics “no show” at hearing

The Energy Regulatory Commission (ERC) can now rule on a petition filed by Bohol Light Company Inc. (BLCI) to collect franchise taxes from its power consumers.

Not a single oppositor on Bohol Light’s petition attended the public hearing called by the ERC last August 28 despite a much-hyped opposition led by Tagbilaran Mayor Dan Lim who challenged the legal personality of the utility firm.

ERC Commissioner Rauf Tan, who presided the public hearing, said the failure of the oppositors to manifest their position on Bohol Light’s petition will be treated as a waiver of their right to argue their position on the matter.

Lim, together with Nemesio Monton of the Tagbilaran Association of Concerned Consumers Organization (Tacco), were the main oppositors of the petition.

During the Sangguniang Panlungsod (SP) regular session on Friday, Kag. Anne Mariquit Oppus queried on the mayor’s failure to attend the ERC hearing.

Kag. Danilo Bantugan explained that the legal panel representing the mayor had decided for a no show before the August 28 hearing.

The statement of Bantugan contradicted the mayor’s explanation yesterday during his weekly “Mayor’s Report”.

According to Lim, the notice of the hearing was received by his office on August 26. However, he was able to read it only on September 1 as he was in Manila for the ISA presentation.

A check made by the Chronicle at the LBC, the mail courier of the ERC notice, revealed that the notices were received by Bohol Light, the City Legal Office, the Mayor’s Office and Monton’s legal counsel Atty. Magdoza all on August 22.

Bohol Light will charge P36.5 million worth of franchise taxes it paid to the national and city governments since 2001.

The franchise taxes will be added as a separate item on the monthly electric bills of consumers for a period of three years.

It may be recalled that Lim opposed the tax recovery measure and raised a pre-judicial question regarding the validity of Bohol Light’s franchise that was issued by the National Electrification Commission on July 10, 2003.

Citing the provisions of the Electric Power Industry Reform Act (EPIRA) that gave exclusive authority to the House of Representatives in issuing franchises in the transmission and distribution of electricity, Lim asked the ERC, to rule first on the franchise issue before giving due course to Bohol Light’s petition. (With reports from Chito Visarra)
(By KIT BAGAIPO)