Marginalized users to enjoy low power rates

The recently approved implementating rules and regulations (IRR) of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 will provide for the implementation of a socialized pricing mechanism called the lifeline rate for marginalized end-users.

This was disclosed by Sen. Renato L. Cayetano, chairman of the Senate Committee on energy and co-chairman of the Joint Congressional Power Commission (Powercom), who added that this special rate is exempted from cross subsidy removal under the Act for a 10-year period.

"It is now mandated by law that families living in poor and marginalized areas will be charged by distribution utilities with rates that are lower than what is normal," Cayetano said.

The IRR was finally approved last Monday by the Powercom ushering in major structural reforms for the electric power industry and the privatization of the state owned National Power Corp. (Napocor).

Cayetano said the IRR will govern the relationships and responsibilities of the electric power industry participants and government agencies such as the Department of Energy (DOE). Napocor National Electrification Administration (NEA), the Energy Regulatory Commission (ERC), the Power Sector Assets and Liabilities Management Corp. (PSALM) and transmission companies. The IRR will be formally signed on Wednesday.