Income tax in power rates calculation | Inquirer Opinion

Income tax in power rates calculation

10:29 PM September 06, 2013

We wish to clarify a certain item in the letter (“ERC defies SC ruling on income tax,” 7/30/13) of Romeo “Butch” Junia.

The letter raised concerns that the Energy Regulatory Commission, in adopting the PBR (performance-based regulation) methodology, allowed income tax to be included in the calculation of the utilities’ rates and recovered from the electric consumers.


We wish to clarify that while income tax is considered one of the components of the revenue requirement, which is the basis for calculating the utilities’ rates, income tax was set to zero. Thus, the utilities’ rates do not effect any recovery for their income tax payments.

chair and CEO,
Energy Regulatory Commission


Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: ERC, Income tax, Letters to the Editor, opinion, power rates
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2022 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.