DOE backs extension of law on lifeline rate

MANILA, Philippines - The Department of Energy (DOE) yesterday said it fully supports the extension of the lifeline rate enjoyed by marginalized power customers.

The DOE said the extension of the lifeline rate will ensure that the poor and underprivileged sector would still be able to afford electricity services.

The lifeline rate is a subsidized electricity rate given to low-income residential power customers who are not able to pay the full cost of electricity.

Customers with an average monthly consumption of 21 to 50 kilowatthours (kWh) are entitled to a 50-percent discount while those consuming an average of 51-70 kWh will get a 35-percent discount.

Customers with an average monthly consumption of 71 to 100 kWh, are entitled to a 20-percent discount.

At present, there are about 2.1 million Meralco customers who fall under the lifeline rate classification, representing about 45 percent of the power firms residential customers.

The EPIRA, passed on June 26, 2001, allows lifeline subsidy to continue for a period of 10 years from the date of its implementation.

DOE said it endorsed the extension of the lifeline rate to ensure that over two million households nationwide will continue receiving discounted electricity rates since the provision is set to expire on June 26, 2011.

With the enactment of the law, marginalized users are ensured of low-priced electricity up to 2021.

Meanwhile, the DOE also supports the enactment of the law that has extended the term of Joint Congressional Power Commission (JCPC) for an additional 10 years.

This will help ensure the continued partnership of the executive department and the legislative department in implementing the provisions of not only the Electric Power Industry Reform Act of 2001 (EPIRA) but the Renewable Energy Act of 2008 as well.

 Representatives from the energy sector such as the DOE, Power Sector Assets and Liabilities Management Corp., National Power Corp., National Electrification Administration, Philippine Electricity Market Corp., National Grid Corp. of the Philippines, Energy Development Corp., Manila Electric Company, Philippine Rural Electric Cooperatives Association, Philippine Electric Plant Owners Association, Center for Clean and Renewable Energy Development and a number of lifeliners from Tondo attended the signing of the law.