Lifeline power rate discounts still on

MANILA, Philippines - The government continues to implement the measure of providing the power-rate discounts to “lifeline” or marginalized electricity consumers even as Malacañang said it got no control over power rate increases. 

Presidential Spokesperson Edwin Lacierda  made the statement yesterday following reports that various groups were appealing to the government to provide electricity subsidy to the poor as the Manila Electricity Company would again increase electricity rates. 

Lacierda reiterated the Aquino administration’s position to ensure that the poor and the underprivileged sector of society would still be able to afford electricity services by giving discounts to low-income users of electricity until 2021.

Last year, the Chief Executive signed Republic Act No. 10150, an act that provides a 10-year extension of the lifeline rate implementation under the Electric Power Industry Reform Act (EPIRA) as a socialized pricing mechanism that benefits the marginalized end-users of electricity. 

The EPIRA initially packaged the discounted rates for the marginalized end-users for 10 years or until June 26, 2011. Under the lifeline subsidy scheme, residential consumers in the higher consumption bracket would have to pay extra cost as subsidy to their poorer counterparts. 

Senate Joint Resolution No. 9, on the other hand, sought to extend the existence of the Joint Congressional Power Commission (JCPC) for another 10 years to “ensure that the goals and objectives of the Electric Power Industry Reform Act (EPIRA) of 2001 and the Renewable Energy Act of 2008 are fully achieved.”

 Last month, the Energy Regulatory Commission (ERC) has approved Meralco’s petition for a maximum average price of P1.6303 per kilowatt-hour for distribution, supply and metering charges to different customer classes.