Extension of lifeline rate subsidy in electricity bill gets Senate nod

By Butch Fernandez January 19, 2021
https://businessmirror.com.ph/2021/01/19/extension-of-lifeline-rate-subsidy-in-electricity-bill-gets-senate-nod/

SEN. Sherwin T. Gatchalian said low-income households can look forward to a continued subsidy in their electricity consumption bills in the next 10 years, after Senate Bill 1877, extending the implementation of subsidized electricity rate to marginalized end-users—particularly those households consuming not more than 100 kilowatt hour (kWh) or less per month—was passed on third and final reading on Monday.

“This is a big relief to our countrymen who continue to suffer from the loss of jobs and livelihood, worsened by the pandemic. With this measure, they are assured of sustained assistance that they have enjoyed for two decades now,” Gatchalian said, partly in Filipino.

The Senate Energy Committee chairman remains optimistic that the bill will see its enactment before the expiration of the Lifeline Rate provision under Section 73 of Republic Act 10150 otherwise known as the Electric Power Industry Reform Act (Epira) of 2001 on June 26 this year.

If passed into law, some 5.5 million households stand to benefit from the socialized pricing mechanism until June 2031 and have an estimated annual savings of P900 on electricity expenses, Gatchalian said.

Under the bill, qualified marginalized end-users are either those who are household-beneficiaries under the Pantawid Pamilyang Pilipino Program (4Ps), or who have applied and have been certified by their respective distribution utilities based on criteria set by the Energy Regulatory Commission (ERC), taking into account the poverty threshold set by the Philippine Statistics Authority (PSA).

This will be the second time that the Lifetime Rate provision will be given a 10-year extension. It was first extended for 10 years in 2011.

The lifeline rate subsidy being paid by non-lifeline consumers in the Meralco franchise is P0.0478 per kWh.