Palace urges Congress to review lifeline rate amid rising power bills

Malacañang on Thursday said Congress may need to review the country’s lifeline rate system to ensure a more equitable distribution of electricity subsidies, following growing concern over rising power bills among consumers.

Presidential Communications Office (PCO) Undersecretary Claire Castro made the statement after customers of Meralco reported noticeable increases in their electricity charges.

Speaking at a press briefing on April 30, Castro said the current arrangement where subsidies for low-income households are partly shouldered by other consumersn may warrant reassessment.

“Siguro ang pinakamaganda rito, mabusising muli ng Kongreso kung ano ang nararapat para magkaroon tayo ng balanced na pagtulong sa ating mga kababayan,” she said.

The lifeline rate is a government-mandated subsidy that provides discounted electricity rates to low-income households, including beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).

Under the current setup, the cost of these discounts is not directly funded by the government but is instead distributed among other electricity users through additional charges reflected in their bills.

Within Meralco’s franchise area, lifeline users consuming 0 to 20 kilowatt-hours (kWh) per month receive a 100-percent discount on generation charges, including system loss, transmission, and distribution costs—excluding a fixed metering fee of about ₱5, resulting in minimal monthly payments.

This system forms part of the broader socialized pricing mechanisms in the power sector.

As electricity costs rise—driven by higher temperatures and the ongoing energy situation—some consumers have questioned why subsidy-related charges appear in their bills and who should ultimately bear the cost.

Others, particularly on social media, have argued that assistance for marginalized sectors should be funded directly by the government rather than passed on to paying consumers.

Castro noted that the lifeline rate policy has long been in place. “Matagal na po itong batas… nagsimula pa noong 2001,” she said.

The measure was first implemented during the administration of Gloria Macapagal-Arroyo and has since been extended by successive administrations, including those of Benigno Aquino III and Rodrigo Duterte.

According to Castro, the program has evolved over time, with its implementation now extended for up to 50 years under recent amendments.