ERC Seeks Public Input on 100% Electricity Discount Proposal for Low-Income Households

The Energy Regulatory Commission (ERC) has invited public comments on a proposal to expand the Lifeline Subsidy Program, which could grant a 100% electricity bill discount to low-income households consuming up to 50 kilowatt-hours (kWh) per month.

Under the draft framework, the ERC plans to implement a Uniform National Lifeline Subsidy Rate of PHP 0.01 per kWh, to be collected from all subsidizing electricity consumers nationwide. Proceeds will be pooled into a National Lifeline Subsidy Fund managed by the Power Sector Assets and Liabilities Management (PSALM) Corporation in line with ERC guidelines.

The initiative aligns with President Ferdinand R. Marcos Jr.’s 2025 State of the Nation Address, which emphasized affordable electricity and expanded access for marginalized Filipinos.

According to the proposal, households with monthly electricity consumption of 50 kWh or less will be eligible for a full 100% bill discount. Beneficiaries of the government’s Pantawid Pamilyang Pilipino Program (4Ps) who are registered with distribution utilities will automatically be enrolled if they meet the consumption criteria.

Distribution utilities (DUs), retail electricity suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) will act as collecting agents, remitting the subsidy charges to PSALM for proper allocation.

The ERC will conduct an annual assessment of the subsidy rate, consumption threshold, and overall fund sufficiency using data from the Philippine Statistics Authority and utility reports to ensure the program remains targeted and financially sustainable.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan emphasized that the public consultation process is crucial to ensuring transparency and inclusivity in policymaking. He said the feedback gathered will help refine the framework to better address the needs of marginalized electricity consumers.

Stakeholders are encouraged to submit their comments as the Commission finalizes the expanded Lifeline Subsidy Program.