Power subsidies review sought amid high electricity rate concerns

Metro Manila, Philippines – A Senate resolution sought an inquiry into the design, targeting, and financing of the lifeline rate subsidy and other power rate discounts to ensure their “fair and sustainable implementation without placing undue burden on consumers.”

Amid widespread complaints of bill shock, Senator Bam Aquino filed Senate Resolution 375 which proposed that electricity subsidies and discounts be funded through the national budget instead of being passed on to consumers.

The lawmaker called on the committee on energy to look into the financing of the lifeline rate subsidy and other mandated electricity discounts, noting that these subsidies add about ₱20 to ₱100 per month to the electricity bills of non-beneficiary households, depending on consumption levels.

“The objective of this policy review is not to remove or diminish the lifeline rate subsidy, but to ensure that it remains well-targeted, fiscally sustainable, and equitably financed, without unduly shifting the burden to other electricity consumers,” Aquino said. 

The senator added that the current redistribution of costs “may place a disproportionate and cumulative burden” to low- and middle-income households who do not qualify for existing subsidies.

In the House of Representatives, Akbayan Rep. Chel Diokno also sounded the alarm on rising power prices and urged the government to review and reconsider the implementation of subsidies and discounts. 

Apart from the lifeline rate subsidy, Diokno also stressed that mandated discounts for senior citizens, 4Ps beneficiaries, feed-in tariff allowance, and green energy auction allowance  should not be shouldered by consumers.

“The people are barely scraping by amid the crisis and soaring prices, they shouldn’t be forced to shell out their hard-earned money unnecessarily,” he said. 

Under the Electric Power Industry Reform Act (RA 9136), a lifeline rate provides discounted electricity bills for marginalized end-users who have difficulty paying at full cost.

RA 11552 expanded the EPIRA coverage to include households under the Pantawid Pamilyang Pilipino Program.

Energy Regulatory Commission rules allow qualified beneficiaries consuming up to 50 kilowatt-hours per month to receive discounts of up to 100 percent, based on standardized eligibility criteria implemented in January 2026.

Meanwhile, senior citizens receive a 5 percent discount on electricity consumption of up to 100 kWh per month under RA 9994, which may likewise contribute to costs shouldered by other consumers.