DOE pushes wider access to Lifeline Rate subsidies

The Department of Energy (DOE) is spearheading an interagency push to expand enrollment in the Lifeline Rate Program, a key electricity subsidy initiative for low-income households, following President Ferdinand R. Marcos Jr.’s directive in his fourth State of the Nation Address.

As of June 2025, an estimated 4.5 million households nationwide are eligible for the Lifeline Rate, but only about 330,000 — or 7.34 percent — have registered with their respective distribution utilities (DUs).

“The DOE reaffirms its commitment to promoting inclusive energy access and calls on all eligible beneficiaries to coordinate with their local DUs to avail themselves of the Lifeline Rate Program,” the agency said in a statement released Wednesday.

The DOE is collaborating with the Energy Regulatory Commission (ERC), Department of Social Welfare and Development (DSWD), and other government bodies to close the enrollment gap and ensure more eligible households benefit from subsidized electricity.

The Lifeline Rate Program, authorized under Section 73 of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA), grants reduced electricity rates to marginalized consumers and was extended for 50 years through Republic Act No. 11552 in 2021.

To ensure the program remains fair and financially viable, the DOE is reviewing existing discount thresholds with the Department of Economy, Planning, and Development (DEPDev) and the ERC.

The review will assess whether current levels adequately address the needs of vulnerable populations while maintaining the sustainability of power distributors.

Discount rates vary depending on the DU.

For example, in the Manila Electric Co. (MERALCO) franchise area, households consuming 0–20 kilowatt hours (kWh) per month receive a 100 percent discount on generation and transmission charges, paying as little as PHP 20.00 monthly, excluding a fixed PHP 5.00 metering fee.

To accelerate uptake, the DOE and ERC are working with DUs to streamline application procedures, reducing red tape and administrative hurdles that often prevent qualified households from applying.

In parallel, the DOE is launching a nationwide information and education campaign (IEC) in partnership with the ERC, DSWD, Philippine Statistics Authority (PSA), DUs, and local government units (LGUs).

The IEC campaign aims to raise public awareness of the Lifeline Rate’s benefits and promote greater sign-up among those in need.

The DOE also anticipates a rise in eligible beneficiaries as the subsidy’s reach expands to include households in the DSWD’s Listahanan database, which catalogs poor and vulnerable families beyond the current Pantawid Pamilyang Pilipino Program (4Ps) coverage.

The Lifeline Rate is a key component of the government’s broader energy access strategy, which includes both subsidy reforms and infrastructure initiatives targeting last-mile electrification.