TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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SENATE
S. B. No. 63
iTJitire of li 'c-
25 JUL-3 P3 38
RECEiVEOBV.
Introduced by Senator Rodante D. Marcoleta
AN ACT
TO FURTHER ENHANCE THE IMPLEMENTATION OF THE LIFELINE RATE, 
AMENDING FOR THE PURPOSE SECTION 73 OF REPUBLIC ACT NO. 9136, 
OTHERWISE KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 
2001," AS AMENDED BY REPUBLIC ACT NO. 11552
EXPLANATORY NOTE
The Philippines' persistent issue of high cost of electricity is attributed to various 
factors, including the deregulation of the generation sector, transmission and distribution 
system losses, heavy dependence on imported fuel, and regulatory weakness, among 
others. Collectively, these elements contribute to increased operational costs, discourage 
investments, and ultimately result in the continued rise in electricity prices that adversely 
affect consumers.
Other neighboring countries have government subsidies to alleviate the burden of 
high prices of electricity. These countries like Indonesia, Korea, Malaysia, Taiwan, 
Thailand and Vietnam1, in return enjoy greater foreign direct investments that further 
hasten economic growth. In contrast, high energy costs translate to fewer investments.
Currently, lifeline rate subsidy covers qualified beneficiaries with 100 kwh or less 
consumption in electricity.2 The proposed amendment aims to enhance the
1 https://www.phiistar.com/opinion/2024/01/17/2326294/phiiippine-eiectricity-really-asias-costiiest 
2https://pids.gov.ph/cietails/news/in-the-news/the-eiectricity-rate-subsidy-system-is- 
broken#:~:text=There%20are%20a%20number%20of,pay%20more%20of%20the%20 subsidy
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implementation of the Lifeline Rate under the Electric Power Industry Reform Act of 2001 
(EPIRA) or Republic Act No. 9136, by subsidizing qualified marginalized households under 
the Lifeline Rate Subsidy program. Recognizing that access to electricity is essential for 
daily living and economic participation, this initiative will help reallocate funds to other 
basic commodities. This amendment addresses short-term financial hardships while 
promoting the long-term recovery and resilience of impacted households.
The current Lifeline Program is a cross-subsidy scheme based on Section 73 of 
EPIRA, aiming to reduce the burden of electricity prices on poor families.
According to the Manila Electric Company (MERALCO), the current Lifeline Rate is 
capped at 100 kWh per month with a ladder discount regulation, viz
DISCOUNT
20% Discount 
35% Discount 
50% Discount 
100% Discount
CONSUMPTION BRACKET
71-100 kWh 
51-70 kWh 
21-50 kWh 
0-20 kWh
This means that to be exempted from paying the electric bill entirely, a household 
should not consume more than 20 kWh per month, or P300 worth of electricity!
This bill aims to exempt all households consuming P2,000 worth of electricity and 
below, or consuming 135 kWh of electricity or less. A median of PI,750 for 5.5 million 
households will only cost the Government PI 15 billion pesos per year. This provides for 
a more transparent and targeted assistance for qualified individuals. It is worth noting 
that under the 2025 GAA, P194 billion worth of "ayuda" was set-up for the beneficiaries 
of 4Ps, MAIP, AICS, TUPAD, and AKAP. This measure can lead the way for the re- 
evaluation of these programs in the future, and hopes for lesser reliance on the same.


In view of the foregoing, the immediate passage of this bill is earnestly sought.
RODA^E D. MARCOLETA


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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
63
BfLLS
S. B. No.
Introduced by Senator Rodante D. Marcoieta
AN ACT
TO FURTHER ENHANCE THE IMPLEMENTATION OF THE LIFELINE RATE, 
AMENDING FOR THE PURPOSE SECTION 73 OF REPUBLIC ACT NO. 9136, 
OTHERWISE KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT 
OF 2001," AS AMENDED BY REPUBLIC ACT NO. 11552
Be It enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Section 73 of Republic Act No. 9136, otherwise known as the "Electric 
Power Industry Reform Act of 2001", as amended by Republic Act No. 11552, is hereby 
further amended to read as follows:
"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 DOE, the ERC, and the distribution utility, whose level of
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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 a 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, 
finaiiy, 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 moot the critcriQ
in this Act to avail of the lifeline-Fate.] ALL QUALIFIED MARGINALIZED 
END-USERS WHOSE LEVEL OF CONSUMPTION OF ELECTRICITY IS 
NOT MORE THAN ONE HUNDRED THIRTY-FIVE KILOWATT HOURS 
(135 kWh) PER MONTH SHALL BE FULLY SUBSIDIZED BY THE 
GOVERNMENT.
The ERC shall promulgate rules and guidelines for qualified marginalized 
end-users whose meters or service connections are not registered in their 
name.
The ERC shall submit to the Joint Congressional Energy Commission an 
annual report on the implementation of the lifeline rate. To achieve the 
objective of providing assistance to electricity consumers especially those living 
below the poverty line and ensure a more equitable distribution of the lifeline 
subsidy, the ERC shall conduct a comprehensive quantitative and qualitative 
evaluation of its implementation every two (2) years to include modes of 
validation and prevention of leakages."
Sec. 2. Transitory Provision. -The current level of consumption, subsidy, and rate 
shall continue to be applied to all marginalized end-users of all distribution utilities


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until such time that a new level of consumption, subsidy, and rate shall have been
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determined and approved by the ERC in accordance with Section 1 of this Act.
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Sec. 3. Appropriations. The amount necessary to carry out the purposes of this Act
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shall be included in the annual General Appropriations Act.
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Sec. 4. Impiementing Rules and Regulations. - Within sixty (60) days from the
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effectivity of this Act, ERC shall, in coordination with the DOE and DSWD, and in
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consultation with the PSA and other relevant public and private stakeholders,
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promulgate the implementing rules and regulations to effectively implement the
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provisions of this Act.
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Sec. 5. Separability Clause. - If any provision or part of this Act is declared invalid
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or unconstitutional, the remaining parts not affected shall remain in full force and
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effect.
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Sec. 6. Repealing Clause. - All laws, presidential decrees, executive orders, letters
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of instructions, proclamations or administrative regulations that are inconsistent with
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the provisions of this Act are hereby repealed, amended, or modified accordingly.
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Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication
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in the Official Gazette or in a newspaper of general circulation.
Approved,