The Energy Regulatory Commission (ERC) is seeking public comments on a proposal to expand the coverage of the Lifeline Subsidy Program—potentially giving a 100% electricity bill discount to low-income households consuming up to 50 kilowatt-hours (kWh) per month.

Under the draft framework, the ERC plans to adopt a Uniform National Lifeline Subsidy Rate of PHP 0.01 per kWh, which will be collected from all subsidizing electricity end-users nationwide. The proceeds will form part of a National Lifeline Subsidy Fund to be administered by the Power Sector Assets and Liabilities Management (PSALM) Corporation, in accordance with ERC guidelines.

The program supports President Ferdinand R. Marcos Jr.’s call in his 2025 State of the Nation Address to make electricity more affordable and broaden access for marginalized Filipinos.

All qualified end users with monthly consumption of 50 kWh or less will receive a 100% discount on their electricity bills. Beneficiaries of the government’s Pantawid Pamilyang Pilipino Program (4Ps) who are registered customers of distribution utilities (DUs) will be automatically enrolled if their monthly usage falls within the 50-kWh threshold.

Distribution utilities, retail electricity suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) will act as collection agents, remitting proceeds from the subsidy charge to PSALM for proper management under the Lifeline Subsidy Fund.

The ERC said it will conduct an annual review of the subsidy rate, consumption threshold, and fund sufficiency, using data from the Philippine Statistics Authority (PSA) and reports from DUs to ensure that the program remains targeted and sustainable.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan stressed that the public consultation process is central to the agency’s commitment to transparency and inclusive policymaking.

“We are conducting public consultation to gather valuable insights from all stakeholders. This participatory approach ensures that the proposed uniform national lifeline subsidy framework is not only aligned with the law, but is fair, transparent, and responsive to the needs of the marginalized electricity consumers,” Chairperson Juan said.

Stakeholders are invited to submit their comments to the ERC as the Commission finalizes the framework for the expanded Lifeline Subsidy Program.

What are your thoughts on the proposed nationwide PHP 0.01/kWh charge to fund a 100% power discount for lifeline consumers? Share your views on how this move could shape affordability and equity in the Philippine energy sector.

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