Duterte signs law extending lifeline subsidy for poor power consumers


A measure allowing the extension of electricity lifeline rates for poor households until 2051 has been signed into law by President Duterte.

President Rodrigo Duterte (File photo/Malacañang)

Republic Act No. 11552 amended Section 73 of the Electric Power Industry Reform Act of 2001 or the EPIRA law to extend the implementation of the socialized pricing system for the marginalized households for the second time.

The lifeline subsidy for those consuming not more than 100 kilowatt hour or less per month was first approved for 10 years under RA 9136 in 2001. It was extended for another 10 years under RA 10150 in 2011.

The amended Section 73 of EPIRA Act of 2001 now reads "In order to provide assistance to electricity consumers, especially those living below the poverty line, and to achieve a more equitable distribution of the lifeline subsidy, a socialized pricing system called a lifeline rate for qualified marginalized end-users shall be set by the ERC which shall be exempted from the cross subsidy phase-out under this Act for a period of fifty (50) years, unless otherwise extended by law."

The level of consumption, subsidy, and rate shall be determined by the ERC after due notice and hearing, provided it will use the data on power consumption from the Philippine Statistics Authority.

Under the new law, qualified marginalized end-users shall refer to the household-beneficiaries under the Pantawid Pamilyang Pilipino Program (4Ps) or those who have been certified by their respective distribution utilities based on criteria set by the Energy Regulatory Commission (ERC).

"All qualified marginalized end-users shall continually meet the criteria in this Act to avail of the lifeline rate," the law read.

The new law also directed the ERC to issue rules and guidelines for qualified marginalized end-users whose meters or service connections are not registered with their name. An annual report must also be submitted to Congress on the implementation of the lifeline rate.

"To achieve the objective of providing assistance to electricity consumers especially those living below the poverty line and ensure a more equitable distribution of the lifeline subsidy, the ERC shall conduct a comprehensive quantitative and qualitative evaluation of its implementation every two years to include modes of validation and prevention of leakages," the law read.

The new law, signed by the President on May 27, takes effect 15 days after publication in the Official Gazette or in a newspaper.