Marcos Advocates for Free Electricity for Low-Consumption Households in Legislative Push
House Majority Leader Ferdinand Alexander Marcos has introduced a groundbreaking legislative proposal aimed at providing free electricity to families with low power consumption. The bill, known as House Bill No. 2700 or the "Free Electricity for Low-Consumption Households Act," seeks to have the government cover the entire electricity costs for eligible households, marking a significant shift in energy subsidy policies.
Key Provisions and Eligibility Criteria
Under this proposed legislation, qualified households would receive full coverage of their electricity bills, with the subsidy exempt from the 12% value-added tax (VAT). To be eligible, households must meet specific consumption thresholds: they must use no more than 135 kilowatt-hours (kWh) per month or have a bill that does not exceed P2,000, whichever is lower. The Energy Regulatory Commission and the Department of Energy will be responsible for verifying and enforcing these criteria to ensure accurate implementation.
Replacing the Current Lifeline Rate System
The primary objective of this bill is to overhaul the existing lifeline rate system, where other consumers indirectly subsidize electricity costs for low-income families. In the new framework, funding will come directly from the government, aiming to create a more equitable and transparent assistance mechanism. This change is designed to eliminate inefficiencies and ensure that support reaches those in need without burdening other ratepayers.
Operational Details and Application Simplification
Under the proposed system, distribution utilities will issue zero-charge bills to qualified beneficiaries and then submit reimbursement claims to the Department of Energy. These transactions will be subject to audits by the Commission on Audit to maintain accountability and prevent misuse of funds. Additionally, Majority Leader Sandro Marcos has highlighted efforts to streamline the application process for the Lifeline Rate Subsidy Program, making it easier for more low-income families to access benefits and enhancing the overall effectiveness of energy assistance initiatives.
