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Climate Tax on electric power consumption filed in Congress

House Bill No. 4739, also known as the “Piso Para sa Kalikasan Act”, has been filed in Congress which aims to impose a Climate Tax on electric power consumption.

Camarines Sur, 2nd District Representative, Luis Raymund F. Villafuerte Jr., has filed the HB No. 4739 which introduces the climate tax – a levy on the level of carbon dioxide emissions from electricity consumption, which he considers as one of the “aggressive measures to address the greenhouse gas (GHG) emission crisis.”

The Climate Tax on Electricity (CTE) shall be equal Php1.00 per 1kg of CO2. It will be imposed on the monthly electric power consumption per electric utility bill of every residential user of electric power utilities in proportion to the CO2 emission generated from electricity consumed. Below is the formula:

E x 0.553 = CTE

Where:
E is the electricity consumption in kWh;
0.553 is the CO2 emission in kilogram per kWh of electricity;
CTE is applicable tax

So for example, my last electric bill has a total kWh of 371 with a total current amount of Php3,272.40:

My applicable tax is 371 x 0.553 = Php205.16 CTE

There are a few exemptions, though:
a) The monthly electricity bill does not exceed 60kWh; or
b) Any form of Renewable energy is used as a source of electricity.

“This bill is a first of its kind in the country. It recognizes the unfortunate status quo of the environment and encourages every Filipino to act now. The proceeds of the fund shall be used to explore alternative and cleaner sources of energy, provide better public transportation, and disseminate climate change awareness.” said Villafuerte, Jr. in the bill’s explanatory note.

“In October 2016, the country submitted its Intended Nationally Determined Contribution (INDC) to the United Nations (UN) where it intends to undertake GHG emissions reduction of about 70% relative to its Business As Usual scenario of 2000-2030.”

Hit the source link below for the copy of House Bill No. 4739.

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  1. Angelina Fulper says:

    Emission tax is the responsibility of power utilities to pay, like coal fired power plants. These coal fired power plants are the number one polluters in the world. More coal power plants have been built in the Philippines in the past decade than any other decade, with no sign of slowing down. The existing coal and other fossil fuel power plants emit billions of tons of CO2 each year and account for about 26% of global greenhouse gas emissions. Philippine Republic Act 9513 required these polluters to lower their emissions by augmenting their use of coal with biomass. Rules 2, Section 4: The Renewable Portfolio Standards (RPS) is a policy which places an obligation on electric power industry participants such as to source or produce specified fraction of their electricity from eligible renewable resources. (a) Purpose of the RPS is to contribute to the growth of renewable energy industry by diversifying energy supply and to help address environmental concerns of the country by reducing greenhouse gas emissions. These are imposed as mandated on electric power industry. These utility industry are required to comply.

    However, the harmful emissions created by these electrical utilities generation should have been part of the addresses of concern within the RPS. So far, there was no “NONE” progress in harnessing these tools, in the area of varietal improvement of biomass. In the national development, there was not enough political will that provide resources in the share of this area of biomass energy sector, solution that can lower the coal power plant emissions.

    AND NOW . . . Camarines Sur, 2nd District Representative, Luis Raymund F. Villafuerte Jr., has filed the HB No. 4739 which introduces the climate tax????? Sira pala and ulo nito to impose this to the consumer. Ang asikasohin nya ay pagbayarin yang coal fired power plants sa mga pollutions.
    BAKIT TAONG BAYAN ANG PABABAYARIN????

  2. anon5742 says:

    #$%@ tlga nmn yun malampaya tax san napunta eto sa bulsa lng buwaya mapupunta di na oi mag solar power na tayo

  3. Fox Hunter says:

    Climate Change is a hoax, this tax is riding on that hoax. Human activity cannot change the climate, that is junk science peddled by govt, using paid scientists, to justify more govt violations of our rights.

    • Angelina Fulper says:

      Hey you!! We are a free country, We have constitutional rights to say whatever! Climate Change is a hoax??? Too much listening to FOX News . . .

      Just expressing my view!

  4. Lloyd Arsen Balbas says:

    Why focus only on the residential consumers? Bakit palaging sa mga ordinary na tao sila nakatutok? I mean the intention looks noble, but misguided. They should tax the power producers for the CO2 they emit. This way may benefit yung mga nagpupush ng renewables. Electricity is the same sa demand side, the difference is how you produce it. Does the congressman intend to charge people of Ilocos Norte who uses wind power for their electricity the same as other areas that rely on coal? And how did they calculate the CO2 factor? May basis yan depende sa fuel na gamit mo, it’s not arbitrary and is never constant. Again, the intentions seem pure, but misguided. Consult muna sir pag may time. Kaya nga REPRESENTATIVE tawag sa yo eh…

  5. archie says:

    Wow pera-peraan lang tong mga pulitiko na to dahil wala na pork barrel. Habang ang ibang bansa ay nasa alternate energy sources na, stuck pa rin ang pinas sa monopoly ng meralco and friends. Phase out na ang nuclear power plants pero hindi natin naramdaman ang efficiency dahil sa mga pro-environmentalist daw slash electric lobbyist noong panahon ni marcos. President duterte kung uubusin mo ang mga adik ubusin mo din ang mga corrupt. Wag mong bigyan ng chance makahanap ng loopholes sa system, consider lobbying as criminals para walang pumipigil sa advancement.

  6. Elmer says:

    Mr. Villafuerte is just a typical type of our congressmen who never gives a deeper taught of what he proposes. Not only this will provide burden to the consumers but in effect will not go anywhere. What Mr. Villafuerte should do is practice his leadership by persuading congress and senate to ratify first the Paris Agreement (COP21). As of today the target 70% reduction in GHG emission by 2030 is not yet official unit COP21 is ratified by congress and signed by the president. Assuming this is approved by July 2017 a long-term Climate Change Action plan should be prepared and agreed so as to meet the 70% target. From this action plan a clear direction shall be set and the financing side can be established. Who knows, maybe the Climate Tax for Electric Power maybe is not needed after all or this might come from a broader financing scheme of the Climate Change Action Plan.

  7. Anonymous says:

    Kahit i-shoulder yan ng power producers, ay ipapasa din yan sa mga consumers.

    Akala ko ba di sang-ayon si Du30 sa Climate Change Bill ek-ek na ini-impose sa Pinas ng UN. So now, bakit niya papayagan ito?

    • Angelina Fulper says:

      Hindi si Duterte ang nagiimpose nito ng emissions tax. Hindi sya papayag pag nalaman nya ito.
      I promise, makararating eto kay Duterte.

    • archie says:

      Nagsuggest pa lang naman yung congressman hindi naman hawak ni duterte ang utak ng lahat ng pulitiko. Ok iimpose ang climate or carbon footprint tax sa mga kotse pero knowing na sa electric consumption ito gagamitin, halatang gagawing no choice ang mga tao. FYI lang kay congressman, solar panel driven na ang Apple office. Kung nakaya ng america na gawing priority ang alternative energy kaya din ng pinas. Style bulok lang yang climate sa meralco at plastic tax para extra alam mo na.

  8. Ronald says:

    Nakooow! Dagdag pahirap yan! Dagdag bills! Dapat energy company ang mag-shoulder nyan at hindi ang mga consumer

  9. Will says:

    Cat frakking dammit! Our electric price per kW/hr is already so high compared to other countries.

    How about they subsidize basic necessities like electricity, food and water instead of only coming up with schemes to pocket our hard earned money?

    First it was about excess gadgets, then the petrol and now this? We should have a list of all the names involved for every Filipino to see so they never get elected ever again.

    • Ronald says:

      agree. Gumawa ng listahan para hindi na iboto yang mga yan na nag-iisip kung anong tax ang ipapatong sa mamamayan. Bababaan nga ang income tax ng mga employee, bibigyan nga ng additional pension ang mga senior, pero ang kapalit mas madaming tax na babayaran. Dun na lang sila magdagdag ng mga tax sa mga hindi naman talaga necessity ng tao gaya ng softdrinks, alak at sigarilyo, mga branded na damit na hindi naman talaga pinoy made or pinoy company mga ineexport kuno pero tatatakan lang then iimport pabalik din sa atin.

  10. drew says:

    Sabi na eh.. Gagawing negosyo yung climate change move na yan.

  11. el gato says:

    greenhouse gases? itigil na natin ang poultry/cattle farming. i-ban na nating mga gasoline/diesel-powered vehicles. i-ban na natin coal/diesel-powered power plants. /s

    ito talaga mga politiko, para maka-pogi points lang…

  12. Anonymous says:

    It is now our fault that we use non-renewable energy source for our electricity, thus we’re to pay for the Climate Tax. It is the fault of the power producers in using coal and bunker fuel that causes said problem. The consumers had been calling on to use/invest in renewable energy for several years now. The power producers should be penalized instead.

    Most of the CO2 emissions are from burning of coal and bunker fuel. And not from usage of electricity.

  13. diego delos santos says:

    sana gawin ni duterte wag na mag impose ng new taxes as per election promise plataporma nya. lalo lang syang nasisira. un mga pamato nyang kapulisan e sila pa ang pasimuno. drugs, carnapping, assassinations and kidnap for ransom, grabe na talaga.nbi, pma, army corrupt. kawawa taong bayan nyan pag na aprubahan yan bill. tapos lahat me vat na. parang ke george bush jr yan. no new taxes pangako during election pero pag elected na di na nya kayang pigilan. lalo lang bababa ang tax collection kasi lalong lumala ang corruption. bir, boc, dfa, etc.efficient ang tax system natin ang problema lang saan napupunta un mga nakolekta na un. kita na sa presidente ang stress of governing. i firing squad na un mga corrupt sa luneta to make an example.or kung hindi masugpo corruption gawing centralized ang corruption like kay marcos. wala pa ring tatalo kay marcos pagdating sa leadership. lahat takot, rule by fear. punishment and reward. kawawa ang next generation un mga millenials dakdak ng dakdak e di naman pala bumoboto. parang kay trump. tapos ngayon sila aangal bakit nanalong presidente e nung election wala silang pakialam. fb ng fb ayan naisahan sila ni trump.

  14. Weng says:

    Here’s an idea to lower CO2 emmissions – stop using coal power plants!

  15. CocoJam says:

    Kingina, eh san naman mapupunta yang tax na yan? Buti kung merong government program na tumututok sa greenhouse effect at may projects na nakalaan para dun. At least kung ganun man masasabi nating may napupuntahan ung climate tax na binabayaran natin. At isa pa, hindi naman sa electric consumption generated ung karamihan nung CO2 instead most of it comes from electrical generation so bakit the end user or the residential user na naman ung aako nito. Tsk…

    • archie says:

      Nakita mo yung pattern sa article? Confusing calculations ang gagawin para madiscourage ang end users na mahalata ang kalokohan charges.

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