Republic of the Pinleppines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, 8030

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT EXTENDING AND ENHANCING 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

Shad lifeline rate. a subsidized rate given to low income captive market end-users

known as the Electric Power Industry Reform Act of 2001 (EPIRA), pursuant to one
of its stated policies of the State is to ensure the affordability of the supply of electric
power

The lifeline rate, Section 73 of the EPIRA. is a socialized pricing mechanism for the
marginalized end-users who are not capable of paying the full cost of electricity
through a subsidized electricity rate.

The collection of the lifeline rate was allowed for ten (10) years, or until 2011. It was
extended by law in 2011 for another ten (10) years. or until 2021. Hence, this
measure seeks to extend the lifeline rate for an additional 20 years or up to 2041 to
continue the much-needed assistance to low income electricity consumers.

Access to quality and low-cost electricity largely improve the lives of the marginalized
with intangible impact on development indicators such as health, education and food
security. The extension of the lifeline rate in the time of COVID-19 pandemic is much
needed assistance in the lives of our fellow Filipinos

In view of the foregoing, the immediate passage of this bill is most earnestly sought



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.8030

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT EXTENDING AND ENHANCING 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 arnended to read as foiiows.

‘SEC. 73. Lifeline Rate. - A socialized pricing mechanism called a lifeline
rate for [the] 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 [twenty—(20)} THIRTY (30) years. unless cthenwise
extended by law. The level of consumption and rate shall be determined
by the ERC after due notice and hearing: PROVIDED, THAT THE ERC
SHALL UTILIZE DATA FROM THE PHILIPPINE STATISTICS
AUTHORITY (PSA) IN THE DERMINATION 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, AS REGULARLY SUBMITTED BY
THE DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
(DSWD) TO THE DOE, THE ERC, AND THE DISTRIBUTION UTILITY;
OR


(B) MARGINALIZED END-USERS WHO HAVE BEEN CERTIFIED AS
SUCH BY THEIR DISTRIBUTION UTILITY BASED ON A CRITERIA
DETERMINED BY ERC: PROVIDED, THAT THE CRITERIA SHALL
TAKE INTO ACCOUNT 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 NOT BE BURDENSOME FOR THE
APPLICANT: PROVIDED FINALLY, THAT THE DISTRIBUTION UTILITY
SHALL ACT ON THE APPLICATION FOR CERTIFICATION AS
MARGINALIZED END-USER WITHIN TWO (2) WORKING DAYS FROM
SUBMISSION OF COMPLETE DOCUMENTARY REQUIREMENTS.

THE ERC SHALL PROMULGATE RULES AND GUIDELINES FOR
QUALIFIED MARGINALIZED END-USERS WHOSE METERS 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, AND A
COMPREHENSIVE EVALUATION OF ITS IMPLEMENTATION VERY
THREE (3) YEARS TO INCLUDE A COST-BENEFIT ANALYSIS AS
WELL AS MODES OF VALIDATION AND PREVENTION OF
LEAKAGES.”

SECTION 2. Implementing Rules and Regulations. The ERC, together with the DOE
and DSWD. in consultation with the PSA and other public and private stakeholders
shall promulgate the implementing rules and regulations of this Act within ninety (0)
calendar days from its effectivity

SECTION 3. 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

SECTION 4. Repealing !
parts thereof inconsistent with any of the provisions of this Act are hereby repealed
amended, or modified accordingly

SECTION 5. 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,