THE House of Representatives has approved on Third Reading House Bill No. 8087, principally authored by Basilan Representative Ustadz Yusop T. Alano, which seeks to condone accumulated interests, surcharges, and penalties on the obligations of the Basilan Electric Cooperative (BASELCO) to the National Power Corporation (NPC).
The measure was approved with 234 affirmative votes, zero negative votes, and two abstentions, reflecting strong support from the House for a reform aimed at stabilizing electricity services in Basilan.
House Bill 8087 seeks to address the long-standing financial burden faced by BASELCO, which has accumulated significant interest charges over decades of power purchases from NPC. From 1999 to June 2025, BASELCO incurred total billings amounting to ₱8.196 billion, with ₱5.057 billion representing the principal obligation and ₱2.605 billion representing interest charges.
During the same period, BASELCO paid ₱3.821 billion to NPC. However, due to the credit and collection policy requiring payments to be applied first to the most onerous accounts, most of these payments were applied to interest rather than the principal obligation, leaving the cooperative with continuing financial strain.
House Bill 8087 proposes to condone all accumulated interests, surcharges, and penalties incurred since 1999. It further mandates that the amount already paid by BASELCO for interest, penalties, and surcharges be applied to and deducted from its principal obligation.
The bill also directs NPC to implement a one-time restructuring program for the remaining principal balance and requires BASELCO to submit regular performance improvement programs to ensure better operational and financial management. The National Electrification Administration and NPC are tasked with issuing implementing rules for the measure.
Alano said the reform is intended to remove a structural financial obstacle that has long constrained the electric cooperative’s ability to strengthen power services in the province.
“Isang malaking hakbang ito para sa Basilan,” Alano said. “Layunin ng panukalang ito na alisin ang matagal nang pinansyal na pasanin ng BASELCO upang makapagpokus ito sa pagpapabuti at pagpapatatag ng serbisyo ng kuryente sa ating lalawigan.”
He emphasized that reliable electricity remains essential to economic development, education, and daily life in the province.
“Ang maaasahang kuryente ay mahalaga sa kabuhayan, negosyo, edukasyon, at sa pangkalahatang pag-unlad ng Basilan,” he said. “Kapag nabawasan ang pasanin sa pananalapi ng ating electric cooperative, mas magkakaroon ito ng kakayahang pagbutihin ang serbisyo para sa bawat Basilenyo.”
The measure comes at a time when global energy markets are experiencing significant volatility. The Philippines, which relies heavily on imported fuel, remains vulnerable to these fluctuations, with regulators warning that higher global fuel costs could translate into increased electricity prices in the coming months.
Alano said strengthening the financial stability of local power distributors such as BASELCO is essential to help communities withstand these external shocks.
“Sa panahon na tumataas ang presyo ng enerhiya sa buong mundo, kailangan nating tiyakin na matatag ang ating lokal na power utilities,” Alano said. “Ang layunin ng panukalang ito ay alisin ang mga hadlang sa pananalapi upang makapagpokus ang BASELCO sa pagbibigay ng mas maaasahang serbisyo sa mga Basilenyo.”
Once enacted, the measure is expected to allow BASELCO to redirect resources toward improving system reliability, strengthening infrastructure, and enhancing electricity services for households and businesses across Basilan.
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