ERC proposes PHP 0.01 charge to expand power subsidy

The Energy Regulatory Commission (ERC) has proposed a PHP 0.01 per kilowatt-hour (kWh) charge on electricity users to fund a 100 percent power bill discount for the country’s poorest households.

The proposal aims to expand the Lifeline Subsidy Program, providing full electricity subsidies to qualified low-income customers consuming up to 50 kWh per month.

Collected from all subsidizing electricity end-users nationwide, the charge would be pooled into a National Lifeline Subsidy Fund managed by the Power Sector Assets and Liabilities Management (PSALM) Corporation.

The ERC’s proposal supports President Ferdinand R. Marcos Jr.’s 2025 State of the Nation Address directive to improve electricity affordability for marginalized Filipinos.

Under the draft guidelines, all eligible households consuming 50 kWh or less per month would receive a 100 percent discount on their monthly electricity bills.

Registered beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) who fall within the usage threshold will be automatically enrolled if they are customers of distribution utilities (DUs).

Distribution utilities, retail electricity suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) will serve as collection agents for the subsidy fund.

Collected proceeds will be remitted to PSALM in accordance with ERC rules for proper management and disbursement of the subsidies.

The ERC will conduct an annual review of the subsidy rate, consumption threshold, and fund sufficiency using data from the Philippine Statistics Authority (PSA) and DU reports.

This review is intended to ensure the program remains targeted, sustainable, and aligned with economic conditions and consumer needs.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan emphasized the importance of transparency and public engagement in the policymaking process.

“We are conducting public consultation to gather valuable insights from all stakeholders,” said Chairperson Juan.

“This participatory approach ensures that the proposed uniform national lifeline subsidy framework is not only aligned with the law, but is fair, transparent, and responsive to the needs of the marginalized electricity consumers,” he added.

The ERC is inviting stakeholders to submit feedback as it finalizes the expanded framework of the Lifeline Subsidy Program.

The program’s expansion marks a critical effort to address energy poverty by easing the burden on vulnerable households through targeted financial assistance.