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Developing pro-poor markets for environmental services in the ...

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Figure 4.3 Program <strong>for</strong> Grant<strong>in</strong>g F<strong>in</strong>ancial Benefits to Host Communities Under ER 1-94, as<br />

amended<br />

Source: Department of Energry – Energy Industry Adm<strong>in</strong>istration Bureau. (DOE-EIAB).<br />

4.2.3 The Universal Charge<br />

Aside from <strong>the</strong> fund mentioned above, <strong>the</strong>re is a separate charge that is mandated by law,<br />

which is called <strong>the</strong> Universal Charge, <strong>the</strong> amount of which has yet to be determ<strong>in</strong>ed by <strong>the</strong><br />

ERC. It shall be imposed upon all end-users of electricity, <strong>in</strong>clud<strong>in</strong>g all self-generation<br />

entities. Rule 18, Section 4(ii) of EPIRA states that <strong>the</strong> charge will be used partly <strong>for</strong> <strong>the</strong><br />

rehabilitation and ma<strong>in</strong>tenance of watershed areas. In particular, <strong>the</strong> law specifies that<br />

PhP0.0025 per kilowatt-hour sales shall be dedicated <strong>for</strong> such purposes. However, <strong>the</strong> DOE<br />

has yet to implement this particular portion of <strong>the</strong> law, hence no assessment can be made as<br />

to its effectiveness <strong>in</strong> <strong>pro</strong>mot<strong>in</strong>g <strong>environmental</strong> <strong>pro</strong>tection.<br />

74

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