Gatchalian seeks 20 more years extension of subsidies to low-income electricity users

Senate Committee on Energy chairman Sherwin Gatchalian has filed Senate Bill No. 1583 which aims to extend subsidies for households who consume 100 kilowatt-hours (kWh) or less electricity per month for 20 years more.

 

"The spirit of this measure is to really cushion the blow of power-rate increases to marginalized households who cannot afford to pay the full cost of their electricity bill. We already made strides in breaking that barrier to access electricity through the lifeline-rate subsidies and there's no turning back now," he said.

 

SB 1583 will further amend Section 73 of Republic Act 9136, or the Electricity Power Industry Reform Act of 2001 (EPIRA). Sec. 73 provides a ten-year subsidy to low income captive market end-users who cannot afford to pay at full cost. 

 

Republic Act 10150, passed in 2011, was a previous amendment to EPIRA that extended lifeline subsidies up to 2021.

 

Currently, customers with an average monthly consumption of 21 to 50 kWh are entitled to a 50-percent discount, while those consuming an average of 51-70 kWh will get a 35-percent discount. 

 

Those with 71 to 100 kWh monthly consumption are entitled to a 20-percent discount.

Gatchalian noted that 2,410,974 households under Meralco (the Manila Electric Company) availed of the lifeline rate in 2019, saving them P3.8 billion. This means each household saved P1,576 annually.

 

With the lifeline-rate subsidy set to expire next year, Gatchalian sees the urgency to further extend the subsidies until 2041.

 

"Sa pagsulong ng batas na ito, hangad natin ang maliwanag at magandang bukas sa bawat isang Pilipino. Kaya bago pa man mapasa ang lifeline-rate subsidy sa susunod na taon ay minabuti na nating isulong agad ang panukalang ito ngayon para masigurung tuluy-tuloy ang sapat na kuryente sa abot-kayang halaga," he said. 

 

(With this law, we aim for a bright and beautiful future for each Filipino. So even before the lifeline-rate subsidy passes next year, it is better to work on the next step to ensure sufficient electricity supply at an affordable level)