(Updated) Senate approves 'clean energy' bill, seen to cut oil dependence

(Updated) MANILA, Philippines - The Philippine Senate unanimously approved its version of the renewable energy (RE) bill, bringing “clean energy" companies close to enjoying longer tax holidays and lower taxes. Once approved, Senate Bill 2046—also known as the Renewable Energy Bill—will enable companies to defer tax payments for seven years and remit a fixed five percent gross income tax rate to the government. Currently, Philippine companies pay corporate taxes worth 35 percent of their income, one of the highest rates in the region. Lesser taxes were imposed to allow RE companies to cope with high technology expenses and construction of their facilities. In a statement, Senator Edgardo Angara said Senate Bill 2046 or the Renewable Energy Act of 2008 will also help decrease the country's dependence on imported fuel. Angara, chairman of the Senate committee on banks, financial institutions and currencies, is one of the principal authors and sponsors of the primary bills which were put together to embody the Senate bill. The House version of the bill was approved on June. The two chambers will now convene into a bicameral conference committee to thresh out the differences of the two versions. Earlier in the day, Sen Juan Miguel Zubiri said the law "would spur further investments in the sector in compliance with international Climate Change conventions such as reduction of green house gases and reduce energy prices." Energy generated from RE for the companies' own use and/or free distribution in off-grid areas will be exempted from a universal charge as indicated in the Electric Power Industry Reform Act (EPIRA). Under SB 2046, the government is also entitled to a one percent share from RE companies gross income and incidental earnings from generation, transmission, and sale of electricity. Once the Congress approves the bill, the Energy Regulatory Commission is expected to amend the Wholesale Electricity Spot Market (WESM) rules, distribution, and grid codes. For its part, the Philippine Electricity Market Corporation and Transmission Corporation—which runs the WESM—is seen to impose regulations for safe electricity transmission. - GMANews.TV