Electric co-ops flag bottlenecks in Lifeline rollout

Electric cooperatives have voiced support for the government’s expanded Lifeline Rate subsidy but warned that tight timelines, verification requirements, and potential funding gaps could slow implementation.

In a TV interview, Philippine Rural Electric Cooperatives Association (PHILRECA) Executive Director and General Manager Atty. Janeene Depay-Colingan said electric cooperatives are aligning with the Energy Regulatory Commission’s (ERC) recent resolution expanding the subsidy program.

Under the ERC resolution, beneficiaries must keep monthly consumption within the 50 kilowatt-hour (kWh) threshold to qualify for the 100% discount even if they are listed under the Pantawid Pamilyang Pilipino Program (4Ps) of the Department of Social Welfare and Development (DSWD).

The policy also requires that the name of the 4Ps beneficiary match the registered account name with the electric cooperative.

“Buong suporta ang mga ECs sa bawat hakbangin ng pamahalaan upang paunlarin ang mga kababayan nating nasa laylayan ng lipunan,” Colingan said.

She added that cooperatives are seeking “sapat, malinaw, at karapat-dapat na alituntunin” (adequate, clear, and appropriate guidelines) to help ensure smooth implementation.

During recent inter-agency coordination, electric cooperatives raised concerns that the detailed validation process for 4Ps beneficiaries could take longer than the two billing cycles prescribed under the policy.

PHILRECA said verifying beneficiary lists and reconciling account names require extensive cross-checking at the cooperative level.

Beyond the validation workload, PHILRECA also pointed to time constraints for technical adjustments in billing systems needed to apply the updated discounts.

PHILRECA further flagged preliminary simulations indicating that the uniform charge of PHP 0.01 per kWh, to be collected from non-lifeline consumers to fund the subsidy, may be insufficient to cover the projected subsidy requirement.

Despite the issues raised, PHILRECA said electric cooperatives have begun modifying their billing systems and intensifying consumer information drives in preparation for the rollout.

The Lifeline Rate is a government subsidy program that provides discounted electricity rates to low-income households that consume minimal amounts of power.

The expanded program, backed by President Ferdinand Marcos Jr. and implemented through the Department of Energy and the ERC, aims to provide a 100% discount to qualified beneficiaries.