Marginal power users to enjoy discounted rates until 2021–DOE

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WEDNESDAY, 22 JUNE 2011 20:20 PAUL ANTHONY A. ISLA / REPORTER

HERE’s good news to marginal power users.

Households consuming less than 100 kilowatt hours (kWh) of electricity a month, or the so-called lifeline rate beneficiaries, will continue to enjoy subsidized rates for at least for the next decade.

The Department of Energy (DOE) revealed on Wednesday that President Aquino has signed a 10-year extension of the lifeline rate for marginalized power consumers.

In line with the Aquino administration’s antipoverty programs, DOE said it is the position of the department that the extension of the lifeline rate will ensure that the poor and underprivileged sector would still be able to afford electricity services. The President signed the extension on Tuesday.

The lifeline rate is a subsidized electricity rate given to low-income residential power customers not able to pay the full cost of electricity.

DOE endorsed the extension of the lifeline rate to ensure that 2.02 million households nationwide will continue to avail themselves of discounted electricity rates as the provision was supposed to expire on June 26. With the enactment of the law, marginalized users are ensured of low-priced electricity up to 2021.

DOE said it also supports the enactment of the law that has extended the term of the Joint Congressional Power Commission for an additional 10 years, which will help ensure the continued partnership of the Executive Department and the Legislative Department in implementing the provisions of not only the Electric Power Industry Reform Act of 2001, but also the Renewable Energy Act of 2008, as well.

Under the current set up, customers with a monthly consumption of zero to 20 kWh get a 100-percent discount, while those using 21 to 50 kWh, 51 to 70 kWh, and 71 to 100 kWh a discount of 50 percent, 35 percent and 20 percent, respectively. Customers consuming more than 100 kWh presently pay an additional P0.0761/kWh, which is used to subsidize the lifeline consumers who are using less than 100 kWh.

Ivanna de la Peña, Manila Electric Co. first vice president, earlier said they support the extension of the lifeline rate because it will contribute to the alleviation of poverty by reducing a barrier to access to electricity.

“There is a need to review the current socialized pricing mechanism to determine if the program provides benefits to the targeted sector, such as the marginalized end-users, and to ensure that there is no unintended bypassing of the obligation to contribute to the subsidy for lifeline consumers,” de la Peña said.