A CONSUMERS group in Negros is urging the region’s power utility companies to spare consumers from the burden of the company’s tax obligations.
Lawyer Vicente Petierre of the Utilities Consumers Alliance of Negros (Ucan) said that Central Negros Electric Cooperative (Ceneco) has a legal obligation to pay its own city real property taxes on its electric distribution poles.
Ceneco management earlier said it would pass on to consumers the real property taxes imposed on the cooperative by various local government units.
Ceneco based their decision on a recent ruling by the Supreme Court in the case “Manila Electric Company (Meralco) versus the City Assessor and City Treasurer of Lucena City,” wherein the court said that transformers, electric posts, transmission lines, insulators, and electric meters belonging to Meralco were not exempt from real property tax under the Local Government Code.
They also cited the Energy Regulatory Commission (ERC)’s Resolution 20, Series of 2009, Section 4.6.1, which states that real properly taxes that are paid by electric cooperatives are deemed part of their operating costs and allowed by ERC for recovery from consumers.
Petierre, however, said that Bacolod City has debts to Ceneco, which the electric cooperative could deduct instead of passing real property taxes to consumers.
Ceneco president Arnel Lapore had earlier said the cooperative would discuss the matter with local governments after the elections.
He said that if Bacolod or other local governments would start charging Ceneco real property taxes for their infrastructure, it would be passed on to consumers.
Petierre said that there is the option of Ceneco from registering with the Cooperative Development Authority (CDA) to be exempt from paying the RPT on electric poles.
However, the lawyer said this could be used as a tool to extend the terms of office of members of the Ceneco Board of Directors.
Petierre pointed out that Ucan is in favor of the benefits provided by CDA, such as exemption from payment of taxes provided, that Ucan could be assured that there would be no extension of terms for the directors.
“Ucan is not opposing the membership of Ceneco with the CDA. There are just certain issues that need to be clarified first,” he added.