MANILA, Philippines - The Aquino government is keen on extending the privileges being given to marginalized electricity end-users, the country’s top energy official said.
Energy Secretary Jose Rene Almendras said there are moves by the executive and legislative branches of government to review the power bill that would allow those benefiting from the so-called lifeline rates to continue to enjoy the discounts.
“We’re doing something about it,” the energy chief said.
He said they are now coordinating closely with lawmakers on this matter.
“We met with the energy committee in Congress. We’ve agreed that we will submit for prioritization because of the deadline. There is a proposal to amend,” he said.
Among the energy reform agenda of the Aquino administration is to revisit the Electric Power Industry Reform Act (EPIRA) provisions including the lifeline rates mandated rate reduction loan on marginalized electricity consumers.
In an Energy Regulatory Commission resolution passed in 2008 on the lifeline rates, customers of Manila Electric Co. (Meralco) with 21 kilowatthour (kwh) monthly consumption will enjoy a 100 percent discount, or free electricity. The old level was set at 50 percent.
The ERC maintained the old level of discounts for other lifeline customer brackets such as 21-50 kwh (50 percent); 51-70 kwh (35 percent); and 71-100 (20 percent).
At present, there are about 2.1 million customers of Meralco under the lifeline rates. This accounts for about 45 percent of its residential customers.
On the contrary, lifeline subsidy whose threshold level is set by the ERC, is charged to all classes of customers to reduce rates of marginalized/low-income captive market end-users who cannot afford to pay in full.
The EPIRA, passed in June 26, 2001, allows lifeline subsidy to continue for a period of 10 years from the date of its implementation.