Lifeline Discount

✅ 1. Republic Act No. 9136

"Electric Power Industry Reform Act (EPIRA) of 2001"

This is the foundational law that established the lifeline rate as a socialized pricing mechanism for marginalized end-users. It mandates that the ERC set the lifeline rate to provide assistance to electricity consumers living below the poverty line.

📌 Key Section

Section 73 – Lifeline Rate:
A socialized pricing mechanism called a lifeline rate for qualified marginalized end-users shall be set by the ERC, exempted from the cross subsidy phase-out, for a period of fifty (50) years unless otherwise extended by law.

✅ 2. Republic Act No. 11552

"An Act Extending and Enhancing the Implementation of the Lifeline Rate" (Approved May 27, 2021)

This law extended and enhanced the implementation of the lifeline rate under Section 73 of EPIRA, as previously amended by RA 10150. It extended the program for a total period of fifty (50) years and redefined who qualifies as a marginalized end-user.

📌 Key Provisions

• Qualified Marginalized End-Users include: (a) qualified household-beneficiaries under the Pantawid Pamilyang Pilipino Program (4Ps Act) submitted by the DSWD; or (b) marginalized end-users certified and continually validated by their distribution utility based on ERC-determined criteria.
• The ERC shall determine the level of consumption, subsidy, and rate after due notice and hearing, primarily utilizing data from the Philippine Statistics Authority (PSA).
• DUs must act on applications within two (2) working days from submission of complete documents (ten days during the initial 12-month implementation period).
• The ERC shall conduct a comprehensive evaluation every two (2) years including modes of validation and prevention of leakages.

✅ 3. Implementing Rules and Regulations (IRR) of RA 11552

Jointly promulgated by the ERC, DOE, and DSWD in consultation with the Philippine Statistics Authority (PSA), the IRR provides the detailed framework for implementing the lifeline rate subsidy under RA 11552.

📌 Key Provisions

• Rule 5 – Determination of New Lifeline Rate: The ERC shall determine the lifeline rate for each DU motu proprio upon compliance with due process. DUs shall continue with the existing approved rate until a new one is approved.
• Rule 6 – Eligibility Requirements: Qualified end-users must be either (a) a 4Ps household-beneficiary, or (b) a marginalized end-user living below the PSA poverty threshold. The discount applies to one electric service account only.
• Rule 6, Section 6 – Disqualifications: Those residing in condominiums or subdivisions (unless government-certified programs) and those availing of net-metering services are not qualified.
• Rule 7 – DSWD/SWDO Certification: The local SWDO issues a Certification valid for three (3) years for non-4Ps marginalized end-users.
• Rule 8 – Availment: The lifeline rate is a non-cash monetary discount applied in monthly electricity bills. Applications must be processed within 2 working days; 10 days during the initial 12-month period.
• Rule 11 – Penal Clause: Violations are subject to administrative fines and penalties in accordance with ERC guidelines.

✅ 4. Joint Resolution No. 01, Series of 2022

"A Joint Resolution for Implementing Republic Act No. 11552"
Issued by: ERC, DOE, and DSWD — Signed October 28, 2022, Pasig City

This Joint Resolution was issued by the ERC, DOE, and DSWD to formally adopt and promulgate the Implementing Rules and Regulations of RA 11552, with the approval of the Joint Congressional Energy Commission (JCEC).

📌 Key Responsibilities Assigned

• ERC: Determine the new lifeline level of consumption for DUs; establish criteria for qualifying marginalized end-users; formulate a simplified and exclusive list of requirements; conduct bi-annual evaluations; submit annual reports to the JCEC.
• DOE: Formulate and promulgate policy guidelines to ensure lawful implementation; lead information dissemination.
• DSWD: Provide the annual certified list of 4Ps household-beneficiaries to DOE and ERC; ensure uniform and objective identification of potential beneficiaries.
• Distribution Utilities (DUs): Must file a petition with the ERC for approval of the lifeline consumption level and discount rate in accordance with RA 11552 and the IRR.

✅ 5. ERC Resolution No. 02, Series of 2026

"Resolution Setting a Uniform National Lifeline Subsidy and Rate for the Implementation of the Lifeline Program"

The ERC issued this landmark resolution establishing a Uniform National Lifeline Subsidy Rate (LSR) applicable to all Distribution Utilities (DUs) and the National Grid Corporation of the Philippines (NGCP) nationwide.

📌 Key Provisions

• Section 1 – Uniform National Lifeline Subsidy Rate (LSR): A fixed monthly rate of PhP0.01/kWh shall be collected from all Subsidizing Electricity End-users as a non-by-passable pass-through charge. This supersedes the DU-specific lifeline subsidy rates previously under ERC Resolution No. 14, Series of 2022.
• Section 2 – Lifeline Subsidy Fund (LSF): A National Lifeline Subsidy Fund is created, to be administered by the Power Sector Assets and Liabilities Management Corporation (PSALM). Collections from all DUs and NGCP are remitted to PSALM's Main Trust Account — Lifeline Subsidy.
• Section 3 – New Uniform Consumption Threshold: The new uniform national consumption threshold is established with the discount structure shown in the table below.
• Section 4 – Remittance Deadline: All Collection Agents (DUs and NGCP) must remit the Net Amount of Lifeline Subsidy to PSALM on or before the 15th day of the succeeding month.
• Section 5 – Disbursement: PSALM shall release the Lifeline Subsidy Fund Availment to Collection Agents within fifteen (15) days following the Collection Agent's report submission, in cases where lifeline discounts provided exceed LSR collected.
• Section 9 – Periodic Review: The ERC shall conduct an annual review of the sufficiency of the LSF and the lifeline consumption threshold, primarily utilizing PSA data.