Provision of Grace Period and/or Other Related Mechanisms in the Collection of Applicable Taxes, Fees and Dues from Energy Facilities Relative to the Extended Imposition of the ECQ

May 20, 2020

DILG MEMORANDUM CIRCULAR NO. 084-20

 

Presidential Proclamation No. 929, S. 2020 was issued 16 March 2020 declaring a State of Public Health Emergency throughout the Philippines due to COVID-19 and imposing Enhanced Community Quarantine (ECQ) throughout Luzon until 12 April 2020. However, with the continuous rise of the confirmed cases of COVID-19, the enhanced community quarantine was extended until 30 April 2020 and subsequently up to 15 May 2020 in Metro Manila and other high-risk areas.

Republic Act (RA) No. 11469 or the Bayanihan to Heal as One Act promotes policies and purposes on the adverse effects of COVID-19 to social, economic, and to financial aspects.

In the operationalization of the said RA, the Department issued an Advisory on the Provision of Temporary Economic Relief to Individuals and Businesses in Local Government Units under Community Quarantine, dated 02 April 2020 to move statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees and other charges required by law, and the grant of any benefit, in order to ease the burden on individuals under Community Quarantine.

Further, the Department of Energy (DOE) issued an Advisory dated 07 May 2020 supplementing the one issued 16 April 2020, on the following directives for all electric power industry participants to provide an extended grace period to pay electric related bills/obligations which fall within the original and extended community quarantine without interest penalties, fees and charges, to wit:

1. All electricity consumers in the country, provided that all unpaid bills falling due from the original and extended ECQ shall be equally amortized in the four (4) months following the end of the ECQ, and in such manner as may be allowed by the Energy Regulatory Commission;

2. All public and private corporations in the power sector with obligations as follows:

a. Payments due to the National Power Corporation, the National Transmission Corporation, the National Grid Corporation of the Philippines, and the Power Sector Assets and Liabilities Management Corporation (PSALM) including power bills and rate adjustments (i.e., ACRM, deferred GRAM and ICERA);

b. Payments due to fuel/resource suppliers of generating facilities including coal, oil, steam supply and natural gas;

c. Payments due to Independent Power Producers;

d. Payments of Universal Charges (UC) as administered by PSALM, provided that the deadline of PSALM to disburse the UC to beneficiaries shall likewise be given grace period by the same number of days given herein; and

e. Payments to Independent Electricity Market Operator of the Philippines of total trading amounts and other charges.

3. Payment of the Feed-in Tariff Allowance shall be in accordance with ERC directives.

4. Retail Electricity Suppliers are encouraged to render to their Contestable Customers similar scheme stated herein, particularly whose nature of business do not fall under essential goods and services category and adversely affected by the implementation of the ECQ.

In view thereof, all LGUs are hereby encouraged to enforce the above directive to all energy facilities and electric power entities in their respective jurisdictions.

All DILG Regional Directors and Field Officers are hereby directed to cause the widest dissemination of this Memorandum Circular within their respective area of jurisdiction.

For the information and guidance of all concerned.

(SGD.) EDUARDO M. AÑOSecretary