EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S.B. No. 1583
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of tijc €i>i--vrtarj>
20 JUN -3 P2 :05
RECu.
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Introduced by SEN. WIN 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
Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 
2001 (EPIRA), provides that one of the policies of the State is to ensure the affordabiiity 
of the supply of electric power.1 Towards this end, the EPIRA removed cross-subsidies 
within a grid, between grids, or between ciasses of customers with the soie exception of 
lifeline rates.2
The lifeline rate is a subsidized rate given to iow income captive market end-users who 
cannot afford to pay at fuli cost.3 The collection of the lifeline rate was ailowed for ten 
(10) years, or untii 2011, unless otherwise extended by law.4 In 2011, Congress saw the 
wisdom in extending the lifeline rate for another ten (10) years, or untii 2021 unless 
otherwise extended by law.5
The lifeline rate has benefitted numerous low-income households through the years. In 
the Meralco franchise alone, 2,410,974 households availed of the lifeline rate In 2019
1 Sec. 2(b), Republic Act No. (RA) 9136 (Approved: 8 June 2001)
2 Sec. 73 and 74, RA 9136 (2001)
5 Sec. 4(hh), RA 9136 (2001)
4 Sec. 73, RA 9136 (2001)
5 Sec. 73, RA 9136 (2001) as amended by RA 10150 (Approved: 21 June 2011)


saving them Php 3.8 billion.6 This translates to Php 1,576 annual savings for each of these 
households, money they did not have in the first place or were able to use for their other 
basic necessities.
With the expiration of the lifeline rate and thus higher electricity rates for marginalized 
end-users looming next year, this measure is filed. This bill extends the lifeline rate for an 
additional 20 years or up to 2041 in order to continue the much-needed assistance to low 
income electricity consumers, which in turn enables them to access electricity and improve 
their lives.
Given the foregoing, the immediate passage of this measure is sought.
ATCHAL'
1 Submission by the Energy Regulatory Commission to the Senate Energy Committee (2 June 2020)


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
S.B. No.
1583
of t!;c gPLTiTtnrp
20 JUN-3 P2 ;05
RECii
Introduced by SEN. WIN 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
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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CHAPTER I
GENERAL PROVISIONS
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.


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The level of consumption and rate shall be determined by the ERC after 
due notice and hearing."
SECTION 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 fuil force and effect.
SECTION 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.
SECTION 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,