What is the Lifeline Subsidy Rate for in your Meralco bill?
After receiving a higher-than-usual electric bill for their March power consumption due to a power rate increase of P0.6427 per kWh, Meralco customers have been discussing on social media one particular item among the rate components in their bill: the lifeline subsidy rate.
A rate addition dictated by law, the lifeline subsidy rate is meant to help impoverished Meralco customers.
"Hindi po ito dagdag-singil ng Meralco," clarified Joe Zaldarriaga, Meralco vice president and head of corporate communications, in a video message.
The Lifeline Rate Subsidy Program is a government initiative, under RA 9136 and RA 11552, meant to help the underprivileged pay their electricity bills.
According to the law, the purpose of the program is to grant discounts to low-income households, including beneficiaries of the Pantawid Pamilyang Pilipino Program, widely known as 4Ps, and those living below the poverty threshold.
Meralco customers who qualify for the program receive a discount on their electricity bill. Those with a monthly electrical consumption of 50kWh and below get a 100% discount; customers within the 51–70kWh bracket receive a 35% discount, while those who consume between 71–100kWh get 20%.
Consumers who do not qualify contribute P0.01 per kWh monthly to help sustain the program. This constitutes the lifeline subsidy rate found in their Meralco bill.
Zaldarriaga emphasized Meralco does not receive anything from the payments of this rate.
"Ito ay isang pass-through charge," he said.
Meralco is not the sole organization that implements the Lifeline Rate Subsidy Program. All distribution utilities and electric co-ops nationwide are also tasked to carry the program.
"Ito ay isang sistema ng pagtutulungan kung saan ang mga consumers na nangangailangan ng suporta ay nabibigyan kahit papaano ng tulong at ayuda," added Zaldarriaga.
The power rate increase implemented in March was due to higher transmission and generation charges, Meralco explained in a press conference last month. In the same briefing, Zaldarriaga warned electricity charges could climb even higher due to the global oil crisis brought on by the Middle East conflict.
