The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) is pushing Congress and the national government to shift funding for the Lifeline Rate electricity subsidy to the national budget, instead of continuing to pass the cost through cross-subsidies charged to ordinary consumers.

The group said the proposal is intended to reduce pressure on households amid sustained concerns over high electricity costs and broader strain on the country’s power system.

“Mariing nanawagan ang Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) sa ating mga mambabatas mula sa House of Representatives (HOR), Senate of the Philippines, at sa pambansang pamahalaan na isama na lamang ang subsidiya na nakalaan para sa Lifeline Rate sa pambansang badyet sa halip na ipataw sa ordinaryong Pilipino,” the group said in its official statement. 

(“PHILRECA strongly calls on lawmakers from the House of Representatives, Senate of the Philippines, and the national government to include the subsidy allocated for the Lifeline Rate in the national budget instead of passing it on to ordinary Filipinos.”)

The Lifeline Rate, mandated under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), provides discounted electricity rates for low-income and marginalized households. It is currently funded through cross-subsidies from non-subsidized consumers.

Under the Energy Regulatory Commission (ERC) framework, the program sets a PHP 0.01 per kilowatt-hour (kWh) rate for 0–50 kWh consumption, offering a 100% discount for qualified beneficiaries, including households under the Pantawid Pamilyang Pilipino Program (4Ps) and other eligible consumers.

PHILRECA said it recognizes the social intent of the policy but stressed the need to reassess how it is financed to avoid adding further burden on paying consumers, particularly its estimated 17 million member-consumer-owners (MCOs) nationwide.

“Naniniwala ang PHILRECA na dapat ang mga programang panlipunan ay nararapat lamang pondohan mula sa nasyonal na badyet at hindi ipinapasa sa mga MCOs,” the group said.

(“PHILRECA believes that social programs should be funded from the national budget and not passed on to member-consumer-owners.”)

The group added that government-funded social protection mechanisms would be more appropriate given ongoing concerns over electricity affordability and sector sustainability.

PHILRECA expressed willingness to work with government agencies and stakeholders in developing longer-term solutions that balance consumer welfare with grid stability and the financial viability of electric cooperatives.

Should lifeline electricity subsidies be fully absorbed by the national budget, or should cross-subsidy mechanisms remain part of the Philippine power pricing structure?

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