Senior citizens to get discounts on electricity bills

MANILA, Philippines – Senior citizens may soon avail themselves of discounts on their electricity bills as the Energy Regulatory Commission (ERC), the country’s power sector watchdog, is set to start public consultations on the proposed rules for the calculation of senior citizen discounts and subsidies on electricity consumption.

“The rules are aimed at providing transparency in the grant of senior citizen discounts and in the calculation of the subsidy rates, and at protecting the interest of the public which will be affected by the rates and services of the distribution utilities,” ERC executive director Francis Saturnino C. Juan said.

Republic Act 9994 grants qualified senior citizens a five percent discount on electricity consumption provided that the installed electric meter is registered under the name of the senior citizen and that the monthly electricity consumption should not exceed 100 kilowatthours. 

Aside from the discount to be enjoyed by the senior citizens, the ERC said government institutions or non-stock, non-profit domestic organizations caring for senior citizens shall be entitled to a 50 percent discount on their monthly electricity bill.

The law’s implementing rules and regulations (IRR), which took effect on July 6, 2010, tasked ERC to come up with the supplementing guidelines within six months from said date.

According to Juan, the draft rules contain the formula used by the ERC in computing the discount on electricity consumption by the senior citizens or home care facilities catering to senior citizens.  

Juan said it also contains the formula in computing the subsidy to be charged to subsidizing end-users.  

The ERC official said the rules will also spell out the formula in computing for over and under-recoveries in the implementation of the senior citizen discount and the subsidy rate adjustments.  

Provisions on the reportorial requirements to be submitted by a distribution utility in the implementation of the discount scheme, using the format prescribed in the ERC’s uniform reportorial requirements (URR) are likewise contained. The rules, Juan pointed out, will also spell out the fines and penalties for violations.