Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House ait no.8954

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

Lifeline rate is a socialized pricing mechanism introduced under the Republic Act No. 9136 or the
Electric Power Industry Reform Act (EPIRA) for the benefit of marginalized or low-income end-
users who cannot afford to pay at full cost and whose consumption fall below the threshold level
determined by the Energy Regulatory Commission.

Originally, EPIRA only allowed for 10 years of implementation of the lifeline rate. This was
amended by Republic Act No. 10150, which extended the collection of lifeline rate for another ten
(10) years. Truly, the lifeline rate has greatly improved access of low-income communities to this
basic utility, consequently improving their quality of life.

As the said extension is about to end in 2021, this proposed measure seeks to extend the lifeline
rate for another twenty (20) years so that low-income households may continue to enjoy access
‘to power at a discounted rate.

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.

Don Mba fi
tyr 1 Aub
RI YY’ MYRA S. TAMBUNTING
J “2nd District, Parafiaque City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bit. no, 8054

Introduced by HON. JOY MYRA S. TAMBUNTING

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 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] 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 otherwise 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 EVERY 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 (90) 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 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.

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,