Govt seeks extension of power discount

Manila Times.net

BY EUAN PAULO C. AÑONUEVO REPORTER

THE government is keen on extending the discount on the electricity bills of marginalized consumers.

Jose Rene Almendras, Department of Energy secretary, said that the Aquino administration has met with lawmakers to prioritize the extension of lifeline electricity discounts mandated by the Electric Power Industry Reform Act (Epira) of 2001.

“We’ve agreed that we will submit for prioritization because of the deadline. There is a proposal to amend,” he said.

Under the Epira, consumers with minimal electricity use shall enjoy discounts in their power bills for a period of 10 years from the law’s passage.

In an interview, Francis Saturnino Juan, Energy Regulatory Commission (ERC) executive director, said that the regulator is still studying if it could order a gradual reduction in the lifeline electricity discount when the Epira’s provision lapses in June.

“This will mitigate the impact because electricity rates could spike,” Juan said.

The ERC, however, is also waiting for any moves in Congress that could lead to an extension of the electricity discount.

In a resolution passed by the ERC in 2008, lifeline or marginalized customers of the country’s largest electricity distribution utility, Manila Electric Co., were granted a 100 percent discount on their power bills should their consumption fall below 21 kilowatt-hours monthly.

On the other hand, consumers with electricity use between 21 and 50 kilowatt-hours, 51 and 70 kilowatt-hours, and 71 and 100 kilowatt-hours were granted a 50, 35 and 20 percent discount, respectively.

At present, there are about 2.1 million customers of Meralco under the lifeline rates. This accounts for about 45 percent of its residential customers.

The discount is shouldered by Meralco’s non-lifeline customers in subsidies reflected in their bills.