Senate panel wants extension of lifeline rate to poor electricity users

MANILA, Philippines – The Senate committees on energy and public services have recommended the extension of the lifeline rate privilege given to low-income users of electricity by another 10 years.

Senate Bill 2846 was principally authored by energy committee chairman Sergio Osmeña III. The Electric Power Industry Reform Act (EPIRA) provides for a lifeline or discounted rate for low-income end users or those who consume up to 100 kilowatt-hours (kWh) a month.

With the subsidy coming to an end this June 26, the law allows for its extension through an act of Congress.

Under EPIRA, customers with an average monthly consumption of zero to 50 kWh enjoy a 50 percent discount on their bill; those using 51 to 70 kWh get 35 percent off; while those who consume 71 to 100 kWh get a 20 percent discount.

Osmeña’s bill includes a definition of “marginalized users” to refer to end users whose electrical loads are limited only for basic lighting, cooling (electric fan), radio and television.

Those who are consuming over 100 kWh a month will also be charged more to cover the cost of the discounted rates to subsidize low-income earners.

He said the extension is necessary to continue protecting the poorest of the poor from high power rates as a result of spiraling prices of oil and other production inputs.

“Today’s high energy prices have resulted in repercussions that are evident throughout the economy. Yet nowhere do high prices bring consequences as swiftly and harshly as in low-income households,” he said.

“For millions of low-income families throughout the country, the dramatically higher prices will intensify the impossibility of meeting the costs of basic human needs, while increasing the energy burdens that are already far beyond a tolerable level,” he added.

A similar bill is also pending approval in the House of Representatives. –Philippine Star