Senator Gatchalian: Special 'lifeline' electricity rate should be limited to low-income households

Senator Sherwin Gatchalian said the electricity lifeline program should benefit only low-income households.

During a recent Senate hearing, Gatchalian said the program should benefit only qualified poor households or beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).

The lifeline rate is a discounted electricity rate designed to help low-income households reduce their monthly power bills.

Gatchalian pointed out that previous rules based eligibility solely on low consumption, allowing high-end condos and subdivisions to benefit.

He explained that low electricity use does not necessarily imply that the user is from a low-income household.

“Kapag ang consumption mo ay 20 kilowatt-hours per month, pwede ka nang maka-avail ng lifeline rate. Dati, consumption lang ang basehan. Kaya may mga condo na hindi naman natitirhan ng owners dahil may bahay sila sa ibang lugar, pero nakaka-avail pa rin,” he explained.

“The lifeline program is designed to subsidize essential appliances but not designed to pay for the beneficiaries’ electricity bill completely,” Gatchalian said during a recent Senate hearing.  

Gatchalian, the former chair of the energy committee, is the main author and sponsor of Republic Act 11552, which extended the lifeline rate subsidy for 50 years, ensuring long-term relief for low-income households.

Qualified 4Ps beneficiaries under the lifeline rate program should have a monthly electricity consumption of 100 kWh or below to avail of discounts ranging from 20 to 100 percent in their Meralco electricity bills, depending on their actual consumption.

“We have to understand that this lifeline rate is not free. We are the ones paying for those subsidies. So it’s important that we make sure that those qualified are really qualified and deserve to be qualified,” he said.

He noted that the existing law extends the lifeline rate for 50 years with clearer qualifications, automatic coverage for 4Ps beneficiaries, and mechanisms for utilities to include other marginalized constituents.  

Gatchalian also stressed reviewing consumption thresholds as usage patterns evolve. 

-Paraluman News