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. 

Oil crisis not included in charges yet

Amid the complaints, Senator Win Gatchalian has invited the Energy Regulatory Commission (ERC) and power distributor Meralco to send representatives to the ad hoc committee on the Middle East crisis hearing on April 29, Wednesday.  

Gatchalian said the panel aims to look into the rise in generation charges due to foreign exchange rates (forex) and contingency plans for more bill shocks caused by the oil crisis brought on by tensions in the Middle East.  

“Pag pumasok na ‘yung presyo ng coal, pumasok na ‘yung presyo ng gas, pumasok na rin ‘yung presyo ng iba pa, tataas pa yung bill natin. This is only forex,” he said. 

“Ang gusto ko malaman, chine-check ba talaga nila ‘yung presyo ng coal at chine-check ba nila talaga ‘yung forex na sinasabing pina-pass on sa consumers,” the senator added. 

[Translation: When the price of coal, gas, and other resources come in, our bill will increase. This is only forex…What I want to know is if they really do check the price of coal and the forex that is said to be passed on to consumers.]

Gatchalian also urged consumers to avoid pinning blame on the 4Ps discounts, saying that beneficiaries only get 50 kWh per family which is only equivalent to power that can support a small refrigerator or one electric stove. 

The senator attributed the recent bill shock to higher generation charges, explaining that power subsidies are not new and accounts for just one centavo out of the 56 centavos in government-mandated charges.

“Hindi malaki yung tulong natin sa pinakamahihirap — para lang makatawid sila at mabuhay nang may dangal,” he said.

[Translation: We don’t give much help to the poorest — just enough so they can live through another day with dignity]

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.

ERC 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.