The Bohol Light Company Inc. (BLCI) explained on Wednesday, June 23, 2021, that it is the firm’s Certificate of Public Convenience and Necessity (CPCN) and not its franchise, that is subject for renewal before the Energy Regulatory Board (ERB).
The BLCI made the clarification in a statement released in its Facebook page on Wednesday, June 23, 2021.
BLCI, in its statement, said that the company has been diligently paying franchise taxes to the city government of Tagbilaran since the start of its operations in 2000. It has been paying the said tax based on the computation of the City Government until 2008.
BLCI admitted that the City Government changed the bases of the latter’s computation of the former’s tax bill in 2009.
BLCI said that the City Government changed the tax classification from franchise tax to business tax where the latter has a higher tax rate and the tax computation included revenue collected for the generation cost, which is something that the BLCI will remit to generation and transmission companies.
In other words, the revenue collected for the generation and distribution companies does not enter the coffers of BLCI, the power firm said in its statement.
Based on an ERC decision in 2008, the basis of the computation of the franchise tax will be based on the revenue generated from the distribution charges, which is aligned with the provisions of the Electric Power Industry Reform Act (EPIRA).
BLCI said that this computation based on the ERC decision resulted to lower power costs to consumers.
The BLCI said that it has a pending case against the City Government filed by the former after the latter changed the basis of the computation of the former’s tax bill.
While the case remains ongoing, the BLCI continued to pay its tax liability to the City Government based on the computation provided by the ERC decision and the EPIRA, even if the case remains pending resolution.
It can be recalled that the Sangguniang Panlungsod passed a resolution giving authority to City Mayor John Geesnell Yap through the City Legal Office to oppose the renewal of BLCI’s franchise for alleged non payment of its tax liabilities.