ERC reviews Lifeline Rate Structure
In response to the country’s financial crisis, the Energy Regulatory Commission (ERC) on its own initiative has embarked on a comprehensive review of the existing Lifeline Rate Structure. “The Commission recognizes the far-reaching implications and the grave impact of the fiscal crisis to the consumers, especially the poorest of the poor”, ERC Chairman Rodolfo B. Albano, Jr. said.
The Lifeline Rate subsidy is pursuant to Section 73 of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA), which provides for lifeline rates for low-income end-users who cannot afford to pay at full cost. This socialized pricing mechanism aims to balance the impact of rates on the marginalized sector of society. “The Commission has always been intent on monitoring the implementation of the Lifeline Rate Subsidy, extending its benefits to the marginalized end-users,” Chairman Albano stressed.
For residential customers, the ERC approved the lifeline rate structures of the various distribution utilities with discounts ranging from ten to fifty percent. In the case of Meralco, customers with an average monthly consumption of up to 50 kWh get 50% discount. Those with consumption from 51 to 70 kWh and 71 to 100 kWh get 35% and 20% discount respectively. The said lifeline rate shall be in effect for a period of 10 years unless extended by law.
Chairman Albano further explained, “The ERC hopes that the review of the structure of the lifeline rate will provide a scheme that will better target the intended beneficiaries of the lifeline rate.”
September 24, 2004