PRESS RELEASE: ERC consults public on the Rules for senior citizens electricity use discount
The Energy Regulatory Commission (ERC) will be holding public consultations on the proposed “Rules for the Calculation of Senior Citizen Discounts and Subsidies on Electricity Consumption Under Section 4 and 5 of Republic Act No. 9994.” R.A. 9994 grants qualified senior citizens a five percent (5%) 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 kWh. Aside from the discount to be enjoyed by the senior citizens, the government institution or non-stock, non-profit domestic organizations caring for senior citizens shall be entitled to 50% discount on their monthly electricity bill. The law’s implementing rules & regulations (IRR), which took effect on 6 July 2010, tasked ERC to come up with the supplementing guidelines within six (6) months from that said date.
The posted draft Rules contains 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. It also contains the formula in computing the subsidy to be charged to subsidizing end-user. It likewise contains 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 (DU) in the implementation of the discount scheme, using the format prescribed in the ERC’s Uniform Reportorial Requirements (URR) are likewise contained. Finally, the rules will also spell out the fines and penalties for violations.
For Luzon-based parties, the public consultation will be held on 22 September 2010 (9:00 A.M., Wednesday) at the ERC Hearing Room located at 15F, Pacific Center Building, San Miguel Ave., Ortigas Center, Pasig City. The Visayas public consultation will be held 29-30 September 2010 (Wednesday & Thursday, 9:00 A.M.) at the Bohol Tropics Hotel, Graham Avenue, Tagbilaran City, Bohol. The Mindanao public consultations will held on 6-7 October 2010 (Wednesday & Thursday, 9:00 A.M.), at the Royal Mandaya Hotel, J. Palma Gil St., Davao City. The Draft Rules was posted on 25 August 2010 by the ERC on its website (www.erc.gov.ph). All parties may submit their comments in both printed and electronic form to the ERC (email to ngcanlas@erc.gov.ph) on or before 07 September 2007 (Tuesday). Parties who shall file their written comments on or before the prescribed period would be accorded priority during the public consultation.
“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 concluded.
August 31, 2010