FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES: )
First Regular Session j

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House BittNo, 4929

EXPLANATORY NOTE

Last June 8, 2001, President Gloria Macapagal-Arroyo signed into law
Republic Act 9136, or the Electric Power Industry Reform Act of 2001, Section
73 of this law states that:

Section 73. Lifeline Rate. - A socialized pricing
mechanism called a lifeline rate for the 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 not exceeding ten (10) years, until
or unless expressly rescinded by law. The level of
consumption and the rate shall be determined by the
ERC after due notice and hearing.

This section was placed in order to cushion the biow of the hefty power
rate increases to low-income end-users. This subsidized electricity rates will
continue to be given to fow-income end-users who cannot afford to pay at full
cost. The threshold consumption levels and the lifeline rates determined and
approved by the ERC shall be exempted from the cross-subsidy removal
under the Act for a period of ten (10) years. This 10-year period will expire on
dune 8, 2011

MERALCO customers consuming up to 100 kWh per month are
presently enjoying the lifeline rate discounts. Customers with an average
monthly consumption of 0 to 50 kWh are getting 50% discount, those with 51


to 70 kWh average monthly consumptions are getting 35% discount, and
those who consume 71 to 100 kWh are getting 20% discount. .

of the Filipino people with regard to high electricit yrates still continue. Itis

therefore necessary to extend the period of effectivity of the lifeline rates for
another 10 years

It is in this light that the immediate passage of this bill is eamestly
sought

wnt

23

MAXIMO B. Ri 22 JR,


FIFTEENTH CONGRESS }
REPUBLIC OF THE PHILIPPINES
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo 8. Rodriguez, Jr.

House Billo. 4529

AN ACT
AMENDING REPUBLIC ACT 9136, OTHERWISE KNOWN AS THE
ELECTRIC POWER INDUSTRY REFORM ACT OF 2001, BY EXTENDING
THE PERIOD WHEREIN THE LIFELINE RATES SHALL APPLY BY TEN
MORE YEARS

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress Assembied:

SECTION 1. Section 73 of Republic Act 9136 is hereby amended to read as

follows:
Section 73. Lifefine Rate. - A socialized pricing
mechanism called a lifeline rate for the 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 not exceeding ften (10) years
TWENTY (20) YEARS, until or unless expressly
rescinded by law. The level of consumption and the
rate shall be determined by the ERC after due notice
and hearing,

SEC. 2. Repealing Clause. All laws, executive orders, rules and regulations
or parts thereof in conflict with the provision of this Act are hereby repealed or
amended accordingly.

SEC. 3. Effectivity. -This Act shalt take effect afer fifteen (15) days following
its full and complete publication in the Official Gazette or in two (2)
newspapers of general circulation.

Approved.