Cebu City Councilor Proposes Ordinance to Fund Electricity Connections for Poor Families
Cebu City Ordinance Aims to Fund Electricity for Poor Families

Cebu City Councilor Proposes Ordinance to Fund Electricity Connections for Poor Families

Cebu City Councilor Mikel Rama has introduced a groundbreaking ordinance aimed at mitigating fire risks in informal settlements by assisting indigent families in obtaining legal electricity connections. The proposal, titled the "Cebu City Inclusive Electricity Access Program" or Kuryente sa Katawhan, seeks to establish a revolving fund to cover utility deposits and application fees for qualified residents who are unable to afford the initial costs.

Addressing Financial Barriers to Legal Electricity Access

Councilor Rama emphasized that while formal consumers benefit from regulated lifeline rates and safety standards, many urban poor households in informal settlements are excluded from legal connections due to high upfront expenses, such as bill deposits and application fees required by distribution utilities. He noted that numerous families remain without legal electricity not because they cannot manage monthly bills, but because they lack the funds for these initial charges. Consequently, some resort to illegal "jumper" connections or informal submetering, which the Bureau of Fire Protection has repeatedly identified as leading causes of residential fires, particularly in densely populated communities.

How the Loan Program Operates

Under the proposed measure, the City will advance up to P5,000 per household to cover connection-related expenses. This assistance will be structured as a loan, repayable over a 24-month period. Repayments will be directed into a Revolving Electricity Connection Special Account, ensuring that funds are available to support future beneficiaries. Once the ordinance is enacted, all approved installations must adhere to standards set by the Energy Regulatory Commission, with the Office of the Building Official overseeing that service lines do not create hazards or obstruct rights-of-way.

Priority Electrification Zones and Additional Provisions

To encourage infrastructure expansion, the proposal introduces Priority Electrification Zones (PEZ). When at least 30 verified applicants are recorded in a contiguous area, the City Planning and Development Office may certify the site as a PEZ, indicating sufficient demand for utility expansion. For applicants lacking land titles, a Barangay Certification of Residency and Occupancy may serve as proof of tenure. Additionally, the measure includes provisions for loan condonation in cases of force majeure or lawful displacement, subject to council approval.

This initiative follows Councilor Rama's earlier endorsement of a similar ordinance aimed at easing the burden on poor households connecting to the Metropolitan Cebu Water District by eliminating high upfront costs, reducing legal risks associated with informal settlements, and promoting infrastructure development in underserved areas.