The Department of Social Welfare and Development Field Office XI (DSWD FO XI) furthered its partnership with Davao Light and Power Company (DLPC) as both offices shall implement the new law, Republic Act No. 11552 or An Act Extending and Enhancing the Implementation of the Lifeline Rate, Amending for the purpose Section 73 of R.A. No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001,” as amended by Republic Act No. 10150. The two offices discussed  on May 16, 2023, the Implementing Rules and Regulations and its salient provisions.

DLPC key personnel facilitates the presentation for the discussion of the R.A. No. 11552 Implementing Rules and Regulations (IRRs).

Present during the meeting were DSWD XI Regional Director, Atty. Vanessa B. Goc-ong, Pantawid Pamilya Division Head, Margie G. Cabido, and some technical officers and focal persons of the Pantawid  Regional Program Management Office.

DSWD Field Office XI Regional Director, Atty. Vanessa B. Goc-ong addresses queries and clarifications from DLPC concerning the Implementing Rules and Regulations (IRR) of the Republi Act No. 11552, otherwise known as the Expanded Lifeline Rate Act.

DLPC was represented by Vice President and Admin Head, Reynold Felix, Reputation Enhancement Department Head Fermin P. Edillon, and some DLPC key personnel.

Davao Light and Power Company Vice-President and Admin Head, Reynold Felix discusses the concerns and queries of DLPC towards the new law, R.A. No. 11552 or the Expanded Lifeline Rate Act.

At the meeting, it was made clear that the Lifeline Rate Act provides subsidies to qualified low-income electricity utility consumers who are financially unable to pay their electricity bills at full cost, as defined under Section 4 of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).

Lifeline Rate Program

Section 4 (hh) of Republic Act No. 9136 defines Lifeline Rate as the subsidized rate given to marginalized/low-income captive market end-users who cannot afford to pay at full cost. These end-users must have levels of electricity consumption below a threshold level to be determined by ERC. Pursuant to Sec. 73 of R.A. No. 9136, “a socialized pricing mechanism called a lifeline rate for marginalized end-users shall be set by the ERC.”

The Lifeline Rate will only be applied if the kWh consumption for the month is within the lifeline consumption threshold of 100kWh and below. This lifeline consumption threshold may still change subject to ERC guidelines.

Under the most recent rules, qualified customers for the Lifeline Rate must first apply and submit all necessary requirements. Only customers with validated applications can avail the Lifeline Rate.

Republic Act No. 11552 or as titled under Section 1 as the Extension of Lifeline Rate, extended the implementation of the Electric Power Industry Reform Act of 2001, which was amended by R.A. 10150. Some amendments under the new law, which was signed in 2021 are the following:

SEC. 73. Lifeline Rate – In order to provide assistance to electricity consumers, especially those living below the poverty line, and to achieve a more equitable distribution of the lifeline subsidy, a socialized pricing mechanism called a lifeline rate for qualified marginalized end-users shall be set by the ERC which shall be exempted from the cross-subsidy phase-out under this Act for a period of fifty (50) years unless otherwise extended by law. The level of consumption, subsidy, and rate shall be determined by the ERC after due notice and hearing: Provided, That the ERC shall primarily utilize data from the Philippine Statistics Authority (PSA) in the determination of the level of consumption.

Qualified marginalized end-users shall refer to any of the following:

A. Qualified household beneficiaries under Republic Act No. 11310, otherwise known as the “Pantawid Pamilyang Pilipino Program (4Ps) Act,” as regularly submitted by the Department of Social Welfare and Development (DSWD) to the Department of Energy (DOE), the Energy Regulatory Commission (ERC), and the distribution utility, whose level of consumption shall be within the threshold determined by the ERC, are qualified marginalized end-users under this Act; or

B. Marginalized end-users who have been certified and continually validated as such by their distribution utility based on criteria determined by the ERC: Provided, that the criteria shall take into account among others, the poverty threshold set by the PSA, and shall contain an exclusive list of requirements to be submitted to the distribution utility; Provided, further, That the exclusive list of requirements shall be simplified and reasonable for the applicant; Provided, furthermore, That the distribution utility shall act on the application for certification as a marginalized end-user within two (2) working days from submission of complete documentary requirements: Provided, finally, That the distribution utility’s action on the application shall be within ten (10) working days during the initial implementation of this Act.

All qualified marginalized end-users shall continually meet the criteria in this Act to avail of the lifeline rate.

Representatives from the Department of Energy and Energy Regulation Commission discuss the Information, Education, and Communication (IEC) Campaign on R.A. 11552 during the roll-out in Mindanao.

Information, Education, Communication Roll-out

In its initial phase of implementation, R.A. No. 11552 set an Information, Education, and Communication (IEC) Roll-out Campaign for the Distribution Utilities in the country. This was led by the Department of Energy (DOE) with support from the Energy Regulatory Commission (ERC), DSWD, and Philippine Statistics Authority (PSA).The roll-out is set in  Luzon, Visayas, and Mindanao.

One of the DUs representatives actively ask how to handle or address the different situations they will most likely encounter during the application of the targeted beneficiaries.

In Mindanao, the IEC Roll-out was held on May 17, 2023, in Davao City, and attended by representatives of different Distribution Utilities in the area, like electric cooperatives.

Representatives from the different Distribution Utilities (DUs) of the entire Mindanao Island attend the Information, Education and Communication (IEC) Roll-out led by DOE, ERC, PSA and DSWD.

Joining the roll-out were key personnel from DOE, ERC and DSWD. DOE Undersecretary Rowena Cristina L. Guevara, Ph.D. opened the event. The Implementing Rules and Regulations (IRR) of RA 11552 was discussed by Atty. Heddrik C. Gonzales, Head of the Investigation and Enforcement Division of ERC.

During the Open Forum,  all representatives from the Distribution Utilities (DUs) brought up their  concerns and issues.

The general manager from one of the attending DUs-electric cooperatives raises his concerns upon hearing the Expanded Lifeline Rate Act IRR.

Following the IEC roll-out, ERC shall forward the list of DSWD-4Ps beneficiaries once it  secures the Data Security Agreements from the DUs.

Atty. Heddrik C. Gonzales, Head of the Investigation and Enforcement Division of ERC, presents the salient provisions of the R.A. 11552 and addresses other legal matters concerning the implementation as guidance to all DUs.
The DOE and ERC share their expertise to all the DUs for the implementation of the law.

The implementation of the R.A. No. 11552 is an add-on benefit to all Pantawid Pamilyang Pilipino Program (4Ps) household beneficiaries. As automatic recipients of the law, 4Ps beneficiaries will enjoy  lower electric bills. This means more buying power  for other necessities such as food, transportation, and clothing. ###