An Act Providing For the Payment In Part of the Subscription of the National Government of the Republic of the Philippines To the Capital Stock of the National Power Corporation Out of the Oil Price Stabilization Fund, Amending For the Purpose Presidential Decree No. 1956, as Amended
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An Act Providing For the Payment In Part of the Subscription of the National Government of the Republic of the Philippines To the Capital Stock of the National Power Corporation Out of the Oil Price Stabilization Fund, Amending For the Purpose Presidential Decree No. 1956, as Amended
Republic Act No. 7639
December 9, 1992
Case Overview and Summary
Summary of Republic Act No. 7639Payment of Government Subscription to National Power Corporation
- The subscription of the Philippine government to the capital stock of the National Power Corporation shall be paid in part from the Oil Price Stabilization Fund (OPSF) in the amount of Three billion pesos (P 3,000,000,000). (Section 1)
- The payment shall be made in accordance with the amended provisions of Section 8 of Presidential Decree No. 1956. (Section 2)
Amendments to Section 8 of Presidential Decree No. 1956
- Creation of the Oil Price Stabilization Fund (OPSF) to minimize frequent price changes due to exchange rate adjustments and/or changes in world crude oil and petroleum product prices. (Section 2)
- Sources of the OPSF: (Section 2)
- Any increase in tax collection from lifting tax exemptions of government corporations.
- Additional amount imposed on petroleum products by the Energy Regulatory Board.
- Peso cost differentials when actual costs paid by oil companies are less than costs computed using the reference foreign exchange rate.
- Uses of the OPSF: (Section 2)
- Reimburse oil companies for cost increases due to exchange rate adjustments and/or world market price increases.
- Reimburse oil companies for cost underrecovery due to domestic price reductions, including reduction in oil company take and reduction in internal specific taxes.
- Cover the payment of P 3,000,000,000 to the National Power Corporation for its capital stock subscription, provided the OPSF terminal balance is not less than P 3,000,000,000 on the effective date. The National Power Corporation shall use the payment for energy project capital expenditures only. (Section 2)
- The OPSF shall be administered by the Office of Energy Affairs. (Section 2)
Repealing Clause and Effectivity
- All laws inconsistent with this Act are repealed or modified accordingly. (Section 3)
- This Act shall take effect upon publication in two national newspapers of general circulation. (Section 4)
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Statutes
Republic Acts
Oil Price Stabilization Fund
National Power Corporation
capital stock subscription
petroleum products
exchange rate adjustments
world market prices
crude oil
tax exemptions
Energy Regulatory Board
cost underrecovery
oil companies
energy projects
Office of Energy Affairs
Law
An Act Providing For the Payment In Part of the Subscription of the National Government of the Republic of the Philippines To the Capital Stock of the National Power Corporation Out of the Oil Price Stabilization Fund, Amending For the Purpose Presidential Decree No. 1956, as Amended
Republic Act No. 7639
•December 9, 1992
Republic of the Philippines
Congress of the Philippines
Metro Manila
Ninth Congress
Republic Act No. 7639             December 9, 1992
AN ACT PROVIDING FOR THE PAYMENT IN PART OF THE SUBSCRIPTION OF THE NATIONAL GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE NATIONAL POWER CORPORATION OUT OF THE OIL PRICE STABILIZATION FUND, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1956, AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. The subscription of the Government of the Republic of the Philippines to the capital stock of the National Power Corporation, as provided for in Republic Act No. 6395, otherwise known as the Revised Charter of the National Power Corporation, as amended by Presidential Decree Nos. 758, 1360, and 1443, shall be paid in part out of the Oil Price Stabilization Fund in the amount of Three billion pesos...
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