Metro Manila (CNN Philippines, December 14) — The Senate approved on second reading a bill extending the implementation of subsidized power bills for low-income consumers for another 10 years.
Senators approved on Monday Senate Bill No. 1877, which aims to extend the implementation of the lifeline rate, the subsidized electricity rate given to marginalized end-users, or those who consume less than 200 kilowatt per hour in a month. This was first extended for 10 years in 2011.
Qualified beneficiaries under the bill sponsored by Sen. Sherwin Gatchalian include those under the Pantawid Pamilyang Pilipino Program and marginalized end-users certified by their distribution utility based on criteria set by the Energy Regulatory Commission.
This also directs the ERC to submit an annual report regarding the implementation of the system and an evaluation every three years that will include a cost-benefit analysis.
Gatchalian said some 12 million consumers subsidize the electricity of around 5 million “lifeliners.” He added that non-lifeliners are being charged about 0.07 centavos in their electricity bill for the subsidy.
Meanwhile, Senate Minority Leader Franklin Drilon argued that distribution facilities should absorb the cost of the subsidy, not the other consumers. But Gatchalian pointed out that not all providers can do so since they do not have the same size and capacity.
The bill is now up for third reading in the Senate. A similar bill was also approved in the lower chamber at the committee level.
