ERC approves uniform national lifeline electricity subsidy rate

The Energy Regulatory Commission (ERC) has approved Resolution No. 02, Series of 2026 setting a Uniform National Lifeline Subsidy and Rate for the implementation of the Lifeline Program nationwide, aimed at expanding access to electricity assistance for marginalized and low-income households and ensuring a more equitable distribution of subsidies across the country.

The approved measure establishes a uniform Lifeline Subsidy Rate of PHP 0.01 per kilowatt hour (kWh) to be collected from subsidizing electricity end-users nationwide.

The ERC said the collected amounts will be pooled into a National Lifeline Subsidy Fund to fund lifeline discounts granted to qualified beneficiaries transparently.

Under the resolution, the fund will be administered by the Power Sector Assets and Liabilities Management (PSALM) Corporation.

The ERC also adopted a uniform national lifeline consumption threshold of 0-50 kWh.

The policy entitles qualified marginalized end-users to a 100 percent discount on applicable electricity charges within the 0–50 kWh consumption level.

For distribution utilities with existing ERC-approved thresholds above 50 kWh, the resolution said current discount structures for higher consumption levels will continue to apply until otherwise directed by the Commission.

The lifeline discount covers multiple components of the electricity bill, including generation, transmission, system loss, distribution, supply, metering, and applicable value-added tax, the ERC said.

The ERC said adopting a uniform national lifeline rate is intended to benefit low-income and marginalized electricity consumers by ensuring consistent and predictable discounts regardless of location or distribution utility.

By shifting from distribution utility-specific lifeline rates to a national framework, the ERC said it is addressing disparities in subsidy levels and broadening the reach of the Lifeline Program to more households nationwide.

For consumers not enrolled in the Lifeline Program, or those whose electricity consumption exceeds the Lifeline threshold, the ERC described the PHP 0.01/kWh contribution as a minimal and shared socialized charge supporting electricity affordability for vulnerable sectors.

The ERC said the approach reinforces the principle of equity in public utility services by spreading the contribution broadly while targeting the discount to qualified beneficiaries.

For distribution utilities, electric cooperatives, retail electricity suppliers, and other collection agents, the ERC said the framework provides a clear, transparent, and revenue-neutral mechanism for collecting and remitting lifeline subsidies.

The ERC said all collections will be treated as pass-through charges and will not form part of utilities’ revenues, so the program does not distort operational costs or tariffs.

The ERC said the centrally administered Lifeline Subsidy Fund under PSALM strengthens accountability, transparency, and sustainability through defined reporting, remittance, disbursement, and audit requirements.

The ERC said the resolution also provides for annual reviews to ensure the sufficiency of the subsidy fund.

The ERC said approving the uniform national lifeline rate aligns with the state’s policy to protect public interest, promote inclusive access to electricity, and enhance the implementation of the Lifeline Program.

The Commission said the action supports implementation of the Lifeline Program mandate under the Electric Power Industry Reform Act, as amended by Republic Acts Nos. 10150 and 11552.