Question & AnswerQ&A (Republic Act No. 11552)
The primary purpose of Republic Act No. 11552 is to extend and enhance the implementation of the lifeline rate, providing assistance to electricity consumers, especially those living below the poverty line, through a socialized pricing mechanism for qualified marginalized end-users.
The lifeline rate is exempted from the cross subsidy phase-out for a period of fifty (50) years, unless otherwise extended by law.
The Energy Regulatory Commission (ERC) is responsible for setting the lifeline rate and determining its level of consumption, subsidy, and rate after due notice and hearing.
The ERC must primarily utilize data from the Philippine Statistics Authority (PSA) in determining the level of consumption for the lifeline rate.
Qualified marginalized end-users include: (a) qualified household-beneficiaries under the Pantawid Pamilyang Pilipino Program (4Ps); and (b) marginalized end-users certified and continually validated by their distribution utility based on ERC-determined criteria considering the PSA poverty threshold.
Distribution utilities must certify marginalized end-users based on an ERC-determined criteria that includes the poverty threshold and an exclusive list of reasonable and simplified documentary requirements. They must act on applications within two (2) working days from submission of complete documents, and within ten (10) working days during initial implementation.
The ERC must submit an annual report on the implementation of the lifeline rate to the Joint Congressional Energy Commission.
The ERC must conduct a comprehensive quantitative and qualitative evaluation of the implementation every two (2) years to include modes of validation and prevention of leakages.
The current level of consumption, subsidy, and rate will continue to be applied to all marginalized end-users until the ERC determines and approves a new level in accordance with the law.
The Energy Regulatory Commission, together with the Department of Energy (DOE) and the Department of Social Welfare and Development (DSWD), in consultation with the Philippine Statistics Authority (PSA) and other stakeholders, are responsible for promulgating the implementing rules and regulations within ninety (90) calendar days from effectivity.