S90171 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL - 3 P3:38 First Regular Session SENATE RECENED EY S. B. No.. Introduced by Senator Rodante D. Marcoleta AN ACT TO FURTHER ENHANCE THE IMPLEMENTATION OF THE LIFELINE RATE, AMENDING FOR THE PURPOSE SECTION 73 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001," AS AMENDED BY REPUBLIC ACT NO. 11552 EXPLANATORY NOTE The Philippines' persistent issue of high cost of electricity is attributed to various factors, including the deregulation of the generation sector, transmission and distribution system losses, heavy dependence on imported fuel, and regulatory weakness, among others. Collectively, these elements contribute to increased operational costs, discourage investments, and ultimately result in the continued rise in electricity prices that adversely affect consumers. Other neighboring countries have government subsidies to alleviate the burden of high prices of electricity. These countries like Indonesia, Korea, Malaysia, Taiwan, Thailand and Vietnam, in return enjoy greater foreign direct investments that further hasten economic growth. In contrast, high energy costs translate to fewer investments. Currently, lifeline rate subsidy covers qualified beneficiaries with 100 kwh or less consumption in electricity. The proposed amendment aims to enhance the ' https://www.philstar.com/opinion/2024/01/17/2326294/philippine-eiectricity-really-asias-costiiest 2https://pids.gov.ph/details/news/in-the-news/the-electricity-rate-subsidy-system-is- broken#:~:†exl=There%20are%20a%20numbeґ%20of,pay%20more%20of%20the%20 subsidy
implementation of the Lifeline Rate under the Electric Power Industry Reform Act of 2001 (EPIRA) or Republic Act No. 9136, by subsidizing qualified marginalized households under the Lifeline Rate Subsidy program. Recognizing that access to electricity is essential for daily living and economic participation, this initiative will help reallocate funds to other basic commodities. This amendment addresses short-term financial hardships while promoting the long-term recovery and resilience of impacted households. The current Lifeline Program is a cross-subsidy scheme based on Section 73 of EPIRA, aiming to reduce the burden of electricity prices on poor families. According to the Manila Electric Company (MERALCO), the current Lifeline Rate is capped at 100 kWh per month with a ladder discount regulation, viz DISCOUNT CONSUMPTION BRACKET 20% Discount 71-100 kWh 35% Discount 51-70 kWh 50% Discount 21-50 kWh 100% Discount 0-20 kWh This means that to be exempted from paying the electric bill entirely, a household should not consume more than 20 kWh per month, or P300 worth of electricity! This bill aims to exempt all households consuming P2,000 worth of electricity and below, or consuming 135 kWh of electricity or less. A median of P1,750 for 5.5 million households will only cost the Government P115 billion pesos per year. This provides for a more transparent and targeted assistance for qualified individuals. It is worth noting that under the 2025 GAA, P194 billion worth of "ayuda" was set-up for the beneficiaries of 4Ps, MAIP, AICS, TUPAD, and AKAP. This measure can lead the way for the re- evaluation of these programs in the future, and hopes for lesser reliance on the same.
In view of the foregoing, the immediate passage of this bill is earnestly sought. RODANTE D. MARCOLETA
OF THE RECEIVED PHILIP TWENTIETH CONGRESS OF THE ) DATE UL - 3 2025 REPUBLIC OF THE PHILIPPINES Co; First Regular Session TIME: 3:38 pm BY: - SENATE BILLS S. B. No. _ Introduced by Senator Rodante D. Marcoleta AN ACT TO FURTHER ENHANCE THE IMPLEMENTATION OF THE LIFELINE RATE, AMENDING FOR THE PURPOSE SECTION 73 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001," AS AMENDED BY REPUBLIC ACT NO. 11552 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 73 of Republic Act No. 9136, otherwise known as the "Electric
2 Power Industry Reform Act of 2001", as amended by Republic Act No. 11552, is hereby 3 further amended to read as follows: "Sec. 73. Lifeline Rate. - 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 mechanism 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, That the ERC shall primarily utilize data from the Philippine Statistics Authority (PSA) in the determination of the level of consumption. "Qualified marginalized end-users shall refer to any of the following: "(a) Qualified household-beneficiaries under Republic Act No. 11310, otherwise known as the "Pantawid Pamilyang Pilipino Program (4Ps) Act," as regularly submitted by the Department of Social Welfare and Development (DSWD) to the DOE, the ERC, and the distribution utility, whose level of
consumption shall be within the threshold determined by the ERC, are qualified marginalized end-users under this Act; or "(b) Marginalized end-users who have been certified and continually validated as such by their distribution utility based on a criteria determined by the ERC: Provided, That the criteria shall take into account, among others, the poverty threshold set by the PSA, and shall contain an exclusive list of requirements to be submitted to the distribution utility: Provided, further, That the exclusive list of requirements shall be simplified and reasonable for the applicant: Provided, furthermore, That the distribution utility shall act on the application for certification as a marginalized end-user within two (2) working days from submission of complete documentary requirements: Provided, finally, That the distribution utility's action on the application shall be within ten (10) working days during the initial implementation of this Act. [All qualified marginalized end users shall continually meet the criteria in this Act to avail of the lifeline rate.] ALL QUALIFIED MARGINALIZED END-USERS WHOSE LEVEL OF CONSUMPTION OF ELECTRICITY IS NOT MORE THAN ONE HUNDRED THIRTY-FIVE KILOWATT HOURS (135 kWh) PER MONTH SHALL BE FULLY SUBSIDIZED BY THE GOVERNMENT. The ERC shall promulgate rules and guidelines for qualified marginalized end-users whose meters or service connections are not registered in their name. The ERC shall submit to the Joint Congressional Energy Commission an annual report 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 (2) years to include modes of validation and prevention of leakages."
Sec. 2. Transitory Provision. - The current level of consumption, subsidy, and rate
shall continue to be applied to all marginalized end-users of all distribution utilities
until such time that a new level of consumption, subsidy, and rate shall have been determined and approved by the ERC in accordance with Section 1 of this Act.
Sec. 3. Appropriations. The amount necessary to carry out the purposes of this Act
4 shall be included in the annual General Appropriations Act.
Sec. 4. Implementing Rules and Regulations. - Within sixty (60) days from the
6 effectivity of this Act, ERC shall, in coordination with the DOE and DSWD, and in 7 consultation with the PSA and other relevant public and private stakeholders, promulgate the implementing rules and regulations to effectively implement the provisions of this Act.
Sec. 5. Separability Clause. - If any provision or part of this Act is declared invalid
or unconstitutional, the remaining parts not affected shall remain in full force and effect.
Sec. 6. Repealing Clause. - All laws, presidential decrees, executive orders, letters
of instructions, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Sec. 7. Effectivity, - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation. Approved,