is

& RECEIVED
3 DATE: AUG 10 2020.

* TIMEs_3:24 po

Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

House sit no, (341

Introduced by HONORABLE WES GATCHALIAN

AN ACT
EXTENDING 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. 10150

EXPLANATORY NOTE

Electricity has become a basic necessity in any person's life. According to
Statista, on average, the household electricity consumption in the Philippines for
2019 was about 248. 1-kilowatt hours in 2015, where electricity was used primarily
for lighting purposes, cooking, recreation and space cooling.! On a related note, the
latest report released by the Philippine Statistics Authority shows that poverty
incidence in the country is estimated at 16.1 percent. This is defined as the
proportion of families whose income is below the poverty line to the total number of

families.

‘The lifeline rate refers to the subsidized rate given to low-income captive
market end-users who cannot afford to pay at full cost.? The implementation of the
lifeline rate is done to ensure and accelerate the total electrification of the country
and ensure the quality, reliability, security and affordability of the supply of electric
power.? Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001
(EPIRA) removed cross-subsidies within a grid, between grids, or between classes of

grids, except lifeline rates.*

' Statista. (2018). Household electricity consumption per capita in the Philippines from 2000
to 2016. Retrieved from https: / /www.statista.com/statistics /600115 /household-
consumption-of-electricity-per-capita-in-the-philippines/

2 Bersales. (2019). Proportion of Poor Filipinos registered at 21.0 percent in the First Semester
of 2018. Philippine Statistics Authority. Retrieved from www.psa.gov.ph/poverty-press-
releases/nid/ 138411

9 Sec. 4{hh), RA 9136 (2001).

+ Sec. 73 and 74, RA 9136 (2001)

oui
oy


EPIRA provides that the collection of lifeline rate was allowed for 10 years,
unless otherwise extended by law. Ten (10) years after the implementation of EPIRA,
the 15% Congress saw it fit to extend the lifeline rate for another ten (10) years,
through Republic Act No. 10150; evidently because it has benefitted a great number
of low-income households.

As Republic Act No. 10150 is about to expire on 2021, this bill is filed and
immediate action for this is sought. This bill will extend the lifeline rate for an
additional twenty (20) years, or up to 2041. This will ensure continuity of the crucial
assistance to low-income electricity consumers, enabling them to access electricity
and improve their lives.



Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. “341
———
Introduced by HONORABLE WES GATCHALIAN
eee

AN ACT
EXTENDING 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. 10150

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

SECTION 1. Extension of Lifeline Rate. - Section 73 of Republic Act No. 9136,
otherwise known as the Electric Power Industry Reform Act of 2001, as amended by
Republic Act No. 10150, is hereby further amended to read as follows:

“SEC. 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 of [twenty [20] FORTY (40)
years, unless otherwise extended by law. The level of
consumption and rate shall be determined by the ERC after due
notice and hearing.”

SEC. 2. Separability Clause. - If for any reason any provision of this Act or
any part thereof shall be held unconstitutional and invalid, the other parts or
provisions of this Act, which are not affected thereby, shall remain in full force and
effect.

SEC. 3. Repealing Clause. - All laws, decrees, orders, rules, and regulations

or parts thereof inconsistent with any of the provisions of this Act are hereby
repealed, amended, or modified accordingly.

SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or one (1) newspaper of general circulation.

Approved,