Senate pushes inquiry on electricity subsidies to protect consumers

By SAMAR NEWS.COM
April 28, 2026

CATBALOGAN CITY – Senator Bam Aquino has filed Senate Resolution No. 375, directing the Committee on Energy to conduct an inquiry into the design, targeting, and financing of the lifeline rate subsidy and other mandated electricity discounts. The measure seeks to ensure that these social protection mechanisms remain fair, sustainable, and do not impose undue burdens on ordinary consumers.

The resolution highlights the policy of the State to promote social justice, particularly for vulnerable sectors such as low-income households. Under the Electric Power Industry Reform Act (EPIRA), marginalized end-users are entitled to a lifeline rate subsidy to help them afford electricity. This policy was further strengthened by Republic Act No. 11552, which identified qualified beneficiaries, including households under the Pantawid Pamilyang Pilipino Program (4Ps).

According to rules issued by the Energy Regulatory Commission (ERC), households consuming between zero and fifty kilowatt-hours per month may receive up to a 100 percent discount on electricity charges. While this provides critical relief to poor families, the resolution raises concerns about the financing of these subsidies, which are often recovered through cross-subsidy mechanisms that shift costs to other consumers.

Senator Aquino emphasized that the inquiry is not intended to remove or diminish the lifeline rate subsidy, but rather to ensure that it remains well-targeted, fiscally sustainable, and equitably financed. The resolution underscores the need to balance social protection with fairness, so that non-beneficiary households – particularly middle-income families – are not disproportionately burdened.

The proposed Senate inquiry is expected to examine alternative financing mechanisms, including possible funding through the national budget, to enhance transparency and accountability in the delivery of electricity subsidies.