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Public Hearing on Proposal Benefiting ICCs/IPs from Energy Fees Held

Posted on June 22, 2015

A public hearing to amend Energy Regulatory Commission's (ERC) Resolution No.18 Series of 2011 or the “Resolution Adopting the Rules and Procedures Governing the Utilization and Disbursement of the Universal Charge-Environmental Charge (UC-EC) that will provide indigenous cultural communities/indigenous peoples (ICCs/IPs) in power-producing areas the access to watershed rehabilitation funds was held on June 15, 2015 at the ERC office in Pasig City.

This came after the Foundation for the Philippine Environment (FPE), National Commission on Indigenous Peoples (NCIP), and Bukidnon Higaonon Tribal Association (BUHITA) filed the petition on December 23, 2014. Issued by the ERC on June 27, 2011, Resolution 18 sets the rules and regulations on UC/EC.

By NPC definition, “universal charge” refers to the charge, if any, imposed for the recovery of the stranded cost and other purposes including an "environmental charge". This is provided for in section 34 of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001. This charge, equivalent to Php 0.0025 per kilowatt-hour, is billed from energy consumers and is intended solely for the rehabilitation and management of watershed areas managed by the NPC, being the government entity mandated to administer the UC-EC.

The petitioners FPE, NCIP, and BUHITA during the public hearing at the ERC in Pasig City.

Meralco representative aired comments on the proposed amendment.

The petitioners highlighted these bases in their argument, that of limited definition of "host communities" that does not acknowledge indigenous cultural communities/ indigenous peoples, and the lack of watershed perspective. Being guardians of forests for centuries, the three groups believe that ICCs/IPs have the right to benefit from such funds especially those residing within energy-generating watershed locales. The National Power Corporation and Meralco gave their comments, during the hearing.

This move was initiated by the FPE special project, Mainstreaming Indigenous Peoples Participation in Environmental Governance (MIPPEG) Project funded by the European Union. Preceding this are series of local and national consultations that gained alliances from the Senate and House Committee on Energy and Committee on National Cultural Communities, Department of Energy, and Power Sector Assets and Liabilities Management, Corp., among others.

The proposal will be further examined by the ERC after all supporting documents have been submitted and reviewed by the end of this month.