House extends subsidized power rate

Manila Bulletin

By CHARISSA M. LUCI

June 7, 2011, 6:13pm

MANILA, Philippines — The House of Representatives has approved the extension of the socialized power rate for low-income power consumers for another 20 years.

House Bill 4629 – authored by Eastern Samar Rep. Ben Evardone and consolidated with lifeline rate bills filed by Batanes Rep. Henedina Abad and Cagayan de Oro Rep. Rufus Rodriguez – was passed on third and final reading Monday night.

“We just passed on third and final reading last night (Monday night) my House Bill 4629 extending the lifeline rate for power consumers for 20 years. This will continue to give discounts to power consumers consuming 100 kilowatt-hours (kWh) and below,” Evardone said in a text message.

Under the Electric Power Industry Reform Act of 2001 or Republic Act 9136, subsidy for marginalized end-users shall expire on June 26 this year. Section 73 of RA 9136 authorized the socialized pricing mechanism.

Evardone said the extension of the lifeline rate for 20 years would ease the plight of marginalized consumers who have been reeling from galloping oil prices as well as rapid price hikes in basic commodities.

Evardone also welcomed the passage of the same bill in the Senate. “Speaker (Feliciano) Belmonte Jr. told me last night that the Senate approved a similar version also yesterday,” he said.

Sen. Sergio Osmeña III, chairman of the Committee on Energy, principally authored Senate Bill 2846 which seeks to extend the lifeline rate discount given to marginalized end-users or those who consume up to 100 kilowatt-hours (kWh) a month.

As provided for under the EPIRA, a 50-percent discount is given to those who have an average monthly consumption of zero to 50 kWh, while consumers using 51 to 70 kWh get 35 percent off on their bill. The law also provides that a 20-percent discount awaits those who consume 71 to 100 kWh.

“Verily, and in view of the rapid price increase in basic commodities, perhaps triggered by the rise in oil prices in the world market, cutting off this lifeline at this time would effectively choke the dampened spirit of every Juan de la Cruz,” Evardone said.