Filtered By: Money
Money

Senate OKs 10-year extension of lifeline rate


The Senate has unanimously approved on third and final reading a bill which seeks to extend the implementation of the lifeline rate, which grants subsidy to marginalized power consumers. Senate Bill 2846 seeks to amend Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 to extend the implementation of the lifeline rate by another 10 years. "Extending the lifeline rate will ensure that electricity is not only available but also accessible to the poor," said Sen. Teofisto Guingona III, who sponsored the bill on the floor. The EPIRA, passed in June 2001, mandated the implementation of lifeline subsidies for a period of 10 years. The effectivity of the lifeline rate is set to end June 26, 2011. A 2008 resolution gave Manila Electric Co. (Meralco) lifeline rate consumers a 100 percent discount. Prior to EPIRA, discounts were set at 50 percent. Other bracket discounts were kept by the Energy Regulatory Commission at 50 percent for those consuming 21-50 kWh, 35 percent for 51-70 kWh and 20 percent for 71-100 kWh. Over 2.1 million Meralco customers or 45 percent of residential customers fall under the lifeline rates. Earlier, the Senate approved on third and final reading a bill extending the period of existence of the Joint Congressional Power Commission. The JCPC, whose period of existence is set to end on June 26, sets the guidelines and overall framework to monitor and ensure the proper implementation of the EPIRA and the Renewable Energy Act. — RSJ, GMA News