Connect with us

Hi, what are you looking for?

Economy

Bill extending lifeline rate until 2051 gets bicam nod

By Angelica Y. Yang

THE BICAMERAL Conference Committee has approved a measure that will extend the lifeline rate subsidy for poor power consumers for thirty more years, a party-list group said in a statement.

On Thursday, the Power Bloc party-list announced that House Bill (HB) 8145, which aimed to subsidize electricity costs for low-income consumers by extending lifeline rates until 2051, was “positively accepted and unanimously supported” by senators.

A lifeline rate is a subsidized rate for marginalized or low-income end-users who consume power below a threshold level as determined by the Energy Regulatory Commission. The cost will be passed on to non-lifeline consumers.

“Thirty years extension is feasible and will allow the energy sector to make strides in achieving secure and affordable electric power supply,” Power Bloc Rep. Sergio C. Dagooc was quoted as saying in a statement. Mr. Dagooc, who also represents the Association of Philippine Electric Cooperatives, is one of the principal authors of the bill.

Citing the Department of Energy (DoE), Power Bloc said that the continued provision of lifeline rates, which will be shouldered by non-lifeline consumers, has very minimal impact on electricity rates.”

The Senate and House of Representatives have yet to ratify the Bicameral Conference Committee report on this measure.

On Thursday, consumer group Laban Konsyumer, Inc. (LKI) President Victor A. Dimagiba said they previously proposed that non-lifeliners stop subsidizing lifeline consumers “since the Electric Power Industry Reform Act of 2001 (EPIRA) has long removed all forms of cross subsidy.” However, he said that “no one from Congress supported the proposal.”

“(The proposal would bring) about (a) minimum (of) 5 to 10 centavos savings per kWh (kilowatt hour) in the bills for the next 30 years at the current rate,” Mr. Dimagiba told BusinessWorld in a Viber interview.

Asked to comment on DoE’s statement that the imposition of lifeline rates will have a minimal impact on power rates, Mr. Dimagiba said that it was a “very myopic” view.

“You add the universal charges and the FIT (feed-in-tariff) allowance that consumers continue to absorb, and the conundrum of the Murang Kuryente Act, that will add up to almost 20 to 30 centavos per kWh,” he said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

THE SENATE on Monday ratified the Bicameral Conference Committee report on a measure that seeks to lower the minimum investment hurdle for foreign retailers...

Economy

The Philippines is one of 17 countries that have kept schools fully closed since the pandemic began, according to a report released by the...

Economy

Workers are busy cleaning in preparation for the restaurant’s reopening in Marikina City. — PHILIPPINE STAR/ MICHAEL VARCAS THE RESTAURANT industry is anticipating some...

Economy

EXCISE TAX collections from cigarettes jumped by 31% to P83 billion in the first seven months, with more than half coming from Philip Morris...

Investing

The world’s largest franchisor of home service brands, has announced the acquisition of Pimlico Plumbers, central London’s leading independent residential and commercial service and...

Economy

MEGAWORLD Corp. will be spending P40 billion to develop an eco-tourism township in Palawan in the next 10 to 15 years, Andrew L. Tan’s...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!