In line with the government’s efforts to make electricity more affordable and accessible to low-income households, the Energy Regulatory Commission (ERC) is soliciting comments on the proposed Uniform National Lifeline Subsidy Rate for the implementation of the Lifeline Program under Section 73 of Republic Act No. 9136, as amended, and creating a National Lifeline Subsidy Fund to be administered by the Power Sector Assets and Liabilities Management (PSALM) Corporation.
The proposed Lifeline Subsidy Program supports President Ferdinand Marcos Jr.’s call in his 2025 State of the Nation Address (SONA) to broaden the program’s coverage and increase access for marginalized electricity consumers.
“All qualified end users with a monthly consumption of 50 kWhs or less will get a 100% discount on their electricity bills.”
Under the draft proposal, all qualified end users with a monthly consumption of 50 kWhs or less will get a 100% discount on their electricity bills.
Qualified 4Ps beneficiaries who have accounts with the distribution utilities (DUs) serving their areas and whose monthly electricity consumption does not exceed the 50 kWh threshold will automatically be enrolled in the Lifeline Subsidy Program and enjoy the 100% lifeline discount.
To fund the Lifeline Subsidy Program, a P0.01 per kilowatt-hour (kWh) Uniform National Lifeline Subsidy Rate will be collected from subsidizing end-users. The proceeds will form part of the Lifeline Subsidy Fund, to be administered by PSALM in accordance with the guidelines set by the Commission. This fund will be used to finance the discounts provided by the DUs to the lifeline consumers.
The ERC also clarified that under the proposal, DUs, Retail Electricity Suppliers (RES), the National Grid Corporation of the Philippines (NGCP), and DUs and RES acting as Suppliers of Last Resort (SOLR) will serve as collection agents for the Uniform National Lifeline Subsidy Rate, remitting all proceeds to PSALM for proper management under the Lifeline Subsidy Fund.
To ensure accountability and responsiveness, the Commission intends to conduct an annual review of the subsidy rate, consumption threshold, and sufficiency of the fund, using data from the Philippine Statistics Authority (PSA) and implementation reports submitted by DUs.
“The conduct of public consultations to solicit comments underscores the Commission’s commitment to uphold transparency, consumer protection, and inclusive policy development.”
ERC Chairperson and CEO Atty. Francis Saturnino Juan emphasized that the conduct of public consultations to solicit comments underscores the Commission’s commitment to uphold transparency, consumer protection, and inclusive policy development.
“We are conducting public consultation to gather valuable insights from all stakeholders. This participatory approach ensures that the proposed uniform national lifeline subsidy framework is not only aligned with the law, but is fair, transparent, and responsive to the needs of the marginalized electricity consumers,” Juan explained.
