1.39 million residential customers benefit from Lifeline Rate subsidy

A total of 1.39 million residential customers of electricity, or 39.9 percent of all residential customers of the 41 electric distribution utilities whose rates the Energy Regulatory Commission (ERC) has unbundled, benefit from the Lifeline discount.

“The ERC is seriously monitoring the implementation of the Lifeline Rate subsidy. It is our desire to maximize the benefit to as many marginalized end-users as possible,” said ERC Chairman Manuel R. Sanchez.

The Lifeline Rate given by ERC so far to residential customers ranges from ten to fifty percent. In the case of Meralco, customers with an average monthly consumption of 0 to 50 kWh get 50% discount. On the other hand, those who consume 51 to 70 kWh and 71 to 100 kWh get will get 35% and 20% discount, respectively. The number of residential customers under the Lifeline Subsidy totals 1.32 million, which comprises 40.32% of the total number of Meralco residential customers.

The Lifeline Rate subsidy is pursuant to Section 73 of Republic Act 9136. It is a socialized pricing mechanism for marginalized or low-income captive end-users who cannot afford to pay at full cost. The provision of the Lifeline Rate shall be applied to all marginalized end-users of all distribution utilities pursuant to the Act. It is the responsibility of ERC to monitor compliance to specific guidelines it shall issue pursuant to the implementation of the Lifeline Rate.

The Lifeline Rate shall be in effect for a period of 10 years unless extended by the law.

Chairman Sanchez said that the subsidy “provides great relief to low-income end-users by providing them discounted electricity rates.”

November 20, 2003