The Senate is currently pushing a measure to ease the burden of Filipinos due to high electricity costs. The initiative aims to protect the middle class and stop the hidden charges that weigh down monthly bills.
Senator Aquino files resolution
Senator Bam Aquino filed Senate Resolution No. 375 to investigate the increase in electricity rates by the Manila Electric Company (Meralco). The senator specifically questioned why middle-class consumers bear the subsidy for low-income households.
Under the resolution, Aquino seeks to examine the cross-subsidy system, a mechanism where non-beneficiary families pay for discounts given to marginalized sectors and senior citizens. Currently, this results in an additional PHP 20 to PHP 100 per month on an ordinary family's bill.
Aquino's concerns
Aquino emphasized the importance of identifying who pays for the subsidy. He suggested that there might be better ways to help the poor, such as using the Department of Social Welfare and Development's (DSWD) 4Ps list instead of relying solely on consumption levels. He noted that targeting based on consumption may not accurately identify those in need.
Aquino clarified that while helping the poorest is a priority, the funds should come from the national budget, not from the pockets of struggling Filipinos. He argued that the government should shoulder social discounts to make the system more transparent and reduce energy prices for everyone.
Proposed reforms
The resolution also proposes using the DSWD's 4Ps list instead of consumption levels to ensure that assistance reaches those who truly need it. During a hearing of the Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee, Aquino expressed the plight of the invisible middle class, who pay taxes but receive no aid, yet are burdened with subsidies for others.
Aquino stressed that the intention is not to remove help from the poor but to fix the flawed billing system. He suggested that funding could come from other sources or that eligibility could be expanded. He also pushed for Senate Bill 670, or the Kuryenteng Walang VAT Bill, which aims to remove the 12% value-added tax (VAT) on electricity to provide immediate relief to households and micro, small, and medium enterprises (MSMEs).
Through these measures, Aquino hopes to reduce inflation's impact and protect every Filipino family from high electricity costs.
