ERC, DOE, DSWD Issue Joint Resolution to Implement Republic Act No. 11552

On 28 October 2022, the Energy Regulation Commission (“ERC”), Department of Energy (“DOE”) and the Department of Social Welfare and Development (“DSWD”) issued a Joint Resolution for Implementing Republic Act (“RA”) No. 11552, entitled an Act Extending and Enhancing the Implementation of the Lifeline Rate, amending for the Purpose, Section 73 of RA No. 9136, otherwise Known as the Electric Power Industry Report Act of 2001 (“EPIRA”), as amended by RA No. 10150 (the “Joint Resolution”). This shall provide the framework for the implementation of RA 11552 including the procedures for the availment by marginalized electricity end-users of the lifeline rate subsidy.

Requirements for the Grant of Lifeline Rate 

End-users belonging to any of the following, subject to certain criteria, may be qualified to avail of the lifeline rate:

• Qualified  household- beneficiary under the “Pantawid Pamilyang Pilpino Program” or “4Ps Act” subject to certain conditions provided under Section 73 of the Republic Act No. 9136, as amended by Section 1 of RA No. 11552; or
• A marginalized end-user, living below poverty line threshold established by the Philippine Statistics Authority, who possesses the qualifications and none of the disqualifications.

A qualified marginalized end-user may avail of the Lifeline Rate for only one electric service account. In case of transfer or change of address, the following shall be observed:

• Where the new residence is being served by the same distribution utility (“DU”)- the grant of Lifeline Rate to the qualified marginalized end-user shall remain, but the same shall be un-tagged in the old residence and transferred to the new address upon submission of the re-issued certificate; or
• Where the new address is being served by a different DU – the grant of Lifeline Rate shall be cancelled by the DU originally serving the said residence, and the Lifeline Rate shall be granted by the new DU in favor of the marginalized end-user upon submission of the re-issued certificate.

Generally, the electric service account with a distribution utility must be registered under the name of the person applying as a qualified marginalized consumer. However, if they can show proof that they are in actual possession and occupation of the said dwelling unit being, the following may be considered as exceptions:

• The Applicant marginalized end-user is a family or household member living in the same household covered by the electric service;
• In cases where the dwelling unit must be serviced by the DU is being leased to the Applicant marginalized end-user and the electric service account is in the name of the lessor or a previous lessee/occupant; or
• In cases where the dwelling unit being serviced by the UD is being leased to a beneficiary of the 4Ps Act or any member of the 4Ps beneficiary’s household.  

To apply for Lifeline Rate, the following documents must be submitted by the qualified marginalized end-user to the DU:

• A duly- accomplished Application Form
• Most recent electricity bill for the electric service being applied for
• Any valid government- issued ID with signature and address of the consumer

For those whose family income fall below the applicable poverty threshold but are not 4Ps beneficiaries, a Certification from the local Social Welfare Development Office issued within six (6) months prior to the filing of the application, showing that his or her family income lives below the poverty threshold applicable at the time of his or application, shall be additionally submitted.

Availment of Lifeline Rate

The lifeline rate shall be a non-cash monetary discount to be applied by the distribution utility in the monthly electricity bills of qualified marginalized end-users. The grant thereof shall remain revenue-neutral to the DU and lifeline subsidy shall be recovered as provided under ERC Resolution No. 16, Series of 2009 and any subsequent amendments thereto.

The DU shall act on the application and issue a Certification of Lifeline Coverage within two (2) working days from the submission of the complete documentary requirements, except that, for the initial twelve (12) months of the implementation of the Act, the DU shall have ten (10) working days within which to fully act on the said application and to issue the Certification accordingly.

The validity thereof shall be within the period indicated in the Certified List issued by the DSWD unless they were delisted earlier than the original period by the DSWD. On the other hand, the lifeline rate granted to a qualified marginalized end-user who is not a 4Ps beneficiary shall be valid for a period of three (3) years from the issuance of the Certification by the local SWDO. Renewal may be made two (2) months prior to the expiration of their Certification of Lifeline Coverage except for those that were granted to 4Ps beneficiaries. The said 4Ps beneficiaries may, however, be reclassified as a marginalized end-user upon submission of the requirements.

Reportorial Requirement

The DUs shall submit, no later than the 30^th day of April of each year, an annual report on the implementation of the lifeline subsidy which shall include the annual and monthly number of the qualified marginalized end-users, by region, and by province, city/ municipality and by level of consumption and by kWh sales.

Annual implementation reports, following the first year of reporting, shall include the annual and monthly number of new applicants certified and registered as marginalized end-users, as well as annual and monthly number of marginalized end-users whose Certification of Lifeline Coverage have been revoked for failure to meet the qualification and criteria. The reasons for delisting shall likewise be reported.

Moreover, the DUs should develop a monitoring system to ensure marginalized end-users who have been certified for the grant of lifeline rate are being continually validated based on the criteria determined by the ERC.