RA 11552 — Lifeline Rate Extension Act

Signed: May 27, 2021 Effective: June 11, 2021 (15 days after publication)

RA 11552 amends Section 73 of EPIRA (RA 9136), as previously amended by RA 10150, to extend the lifeline rate exemption from cross-subsidy phase-out from its prior term to 50 years from EPIRA’s effectivity (2001 + 50 = ~2051). It also tightens the definition of “Qualified Marginalized End-Users (QMEs)” and strengthens ERC’s monitoring obligations.

Amended §73 — Key Changes

Extension Period

The lifeline rate exemption from the cross-subsidy phase-out is set at fifty (50) years from EPIRA’s effectivity — unless further extended by law. Original EPIRA provision was 10 years; RA 10150 made an earlier extension. RA 11552 is the current operative text. [RA 11552, §1, 2021]

Qualified Marginalized End-Users (QMEs) — Two Categories

Category (a) — 4Ps Beneficiaries: Household-beneficiaries under RA 11310 (Pantawid Pamilyang Pilipino Program/4Ps Act), as regularly submitted by DSWD to DOE, ERC, and the distribution utility, whose level of consumption is within the threshold determined by ERC. [RA 11552, §1, 2021]

Category (b) — PSA Poverty-Threshold Certified: Marginalized end-users certified and continually validated by their distribution utility based on ERC-determined criteria, which must:

• Take into account the poverty threshold set by the PSA
• Contain an exclusive list of requirements — simplified and reasonable for the applicant
• Be acted on by the DU within 2 working days from submission of complete requirements
• Be acted on within 10 working days during initial implementation of the Act

[RA 11552, §1, 2021]

All QMEs must continually meet the criteria to avail of the lifeline rate. ERC must promulgate rules for QMEs whose meters or service connections are not registered in their name.

ERC Reporting and Evaluation

• ERC must submit an annual report on lifeline rate implementation to the Joint Congressional Energy Commission (JCEC)
• ERC must conduct a comprehensive quantitative and qualitative evaluation of implementation every 2 years, covering modes of validation and prevention of leakages

[RA 11552, §1, 2021]

IRR (§3)

ERC, together with DOE and DSWD, in consultation with PSA and other stakeholders, must promulgate the IRR within 90 calendar days of effectivity. [RA 11552, §3, 2021]

Transitory Provision (§2)

The current level of consumption, subsidy, and rate shall continue to apply until a new level is determined and approved by ERC under this Act. [RA 11552, §2, 2021]

Full text: Cleaned copy