MANILA, Philippines — President Duterte approved several measures as additional assistance to lifeliners or low-income households, including the extension of the no-disconnection policy until this month in consideration of the COVID-19 pandemic, the Department of Energy (DOE) said yesterday.
During the Cabinet meeting at Malacañang yesterday, Energy Secretary Alfonso Cusi said the DOE is exhausting all efforts and options to protect consumers.
According to the DOE, Duterte has approved all the recommended measures presented by DOE Undersecretary and spokesperson Felix William Fuentebella, particularly the extension of the no-disconnection policy for an additional two months and allowing options for installment payment for lifeliners.
Lifeliners refer to the low-income captive market end-users who cannot afford to pay at full cost.
ERC commissioner Floresinda Digal said the lifeline levels vary per distribution utility (DU) or electric cooperative (EC).
“On the no disconnection, we are coordinating this with DOE,” she said.
In a phone interview, Fuentebella said the agency’s proposal extends the no disconnection policy order by the DOE and the Energy Regulatory Commission (ERC) from end-December 2020 to February this year.
Fuentebella said power connection would not be cut for lifeliners who are not able to settle their bills until this month.
But in March, DUs and ECs can resume sending disconnection notices to customers with unpaid bills, but should be given installment payment options, he said.
For its part, Manila Electric Co. (Meralco) said it would comply with the extension of the no disconnection policy for low-income households.
“We will comply with the government’s directive and will wait for the specific guidelines from the Department of Energy. We would like to assure our customers that we will continue to assist all of them in addressing their billing issues,” Meralco spokesperson, VP and Head of Corporate Communications Joe Zaldarriaga said in a text message to reporters.
Meralco had already extended the grace period until end-January, which was already beyond the October 2020 advisory of the ERC to extend the disconnection moratorium for consumers using 200 kwh and below.
However, Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) president and Party-List representative Presley De Jesus said any prolonged extension of this policy would disrupt cash flow in the power supply chain.
“There will be a huge implication in the financial stability of all stakeholders in the energy supply chain should a prolonged no disconnection policy is imposed by the government. And this disruption is not just going to affect the energy sector. If electricity consumers default on their utility bills payments, then the distribution utilities will eventually default as well to its power suppliers,” he said.
De Jesus said DUs are “mere collection agents” of generation companies and even by the government in terms of taxes.
“Power suppliers also have their own obligations and payments due to banks and other financial institutions. So, DUs’ possible default or non-payment will eventually affect power suppliers’ obligations to banks and financial institutions as well,” he said.
Another proposed measure approved was the intensified campaign of the Presidential Communications Operations Office-DOE for energy efficiency and conservation, enabling all consumers, including the lifeliners, to enhance the efficient use of energy through new technologies.
The DOE also sought support for the quick restoration of services, especially during calamities.
Other proposed measures include the continued support for the DOE and ERC in the implementation of Energy Efficiency Law, Retail Competition and Open Access, Green Energy Option Program, and Green Energy Auction Program; explore the Corporate Recovery and Tax Incentives for Enterprise Bill’s potential to improve the consumers’ ability to pay and to enhance the competitiveness of the supply sector and maximize the Department of Finance-DOE’s foreign assistance, such as the Green Energy Fund and Energy Transition Fund for consumer protection through the use of new technologies and the development of indigenous and clean energy sources.
During the meeting, Cusi assured the President that the DOE has put consumer welfare at the forefront of its policy strategies.
“I have given my order to all the DUs to submit their programs and strategies that will help alleviate the lives of the lifeliners in these crucial times,” Cusi said.
“As we grappled with the peak of COVID-19 transmissions last year, the DOE took proactive steps to help consumers, most especially those at the margins, keep afloat in the midst of grave health and livelihood concerns,” he said.
To date, the DOE and the Energy family has been assisting lifeliners by directing energy entities to observe the grace period and staggered payments for unpaid bills provided under the Bayanihan Law, assistance under the National Electrification Administration’s Pantawid Liwanag Program, and the suspension of the Universal Charge for Stranded Contract Cost and Stranded Debts to be covered by the Malampaya fund under the Murang Kuryente Act.
However, to lessen the impact and help manage the cash flow in the energy supply chain, consumers who are capable of paying are encouraged to continue paying their bills within the original due dates.
The DOE has also called on the ERC to closely monitor pass-through charges.
Moreover, Duterte also approved the move to extend of the benefits enjoyed by lifeliners from 2021 to 2051 under the Electric Power Industry Reform Act, as recommended by Cusi.