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Manila Bulletin devider Business devider The Economy devider ERC proposes national fund to give 100% power discounts to poor

ERC proposes national fund to give 100% power discounts to poor

Published Nov 5, 2025 04:42 pm
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The Energy Regulatory Commission (ERC) is moving to create a uniform national lifeline subsidy rate (UNLSR) that would fund 100 percent electricity bill discounts for low-income households.
In a statement on Wednesday, Nov. 5, the agency announced that it is seeking to establish a national lifeline subsidy fund, which would be managed by the Power Sector Assets and Liabilities Management (PSALM) Corp. The initiative extends the current subsidy program.
Once finalized, all non-lifeline electricity users would be charged ₱0.01 per kilowatt-hour (kWh) as the UNLSR. This charge would finance the discounts offered by distribution utilities (DUs) to qualified consumers.
Collections from DUs, retail electricity suppliers (RES), the National Grid Corporation of the Philippines (NGCP), and suppliers of last resort (SOLR) will be remitted to PSALM.
The lifeline program currently covers households consuming 50 kWh or less per month. Qualified beneficiaries of the government’s 4Ps conditional cash transfer program who meet the consumption limit will be automatically enrolled.
The ERC plans to conduct an annual review of the subsidy rate and consumption, monitoring the funds through DU reports and data from the Philippine Statistics Authority (PSA).
ERC Chairperson Francis Saturnino Juan said the public consultation for the program is currently underway.
“This participatory approach ensures that the proposed uniform national lifeline subsidy framework is not only aligned with the law, but is fair, transparent, and responsive to the needs of the marginalized electricity consumers,” Juan stated.
The measure aligns with President Ferdinand Marcos’ call during this year’s State of the Nation Address (SONA) to extend the lifeline rate to more marginalized consumers.

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