The Baguio City Council has sought updates on the implementation of the Lifeline Rate Subsidy Program, a key initiative designed to assist marginalized electricity consumers. During the City Council’s regular session on March 9, 2026, representatives from the Benguet Electric Cooperative (BENECO) were invited to shed light on the program.
BENECO General Manager Melchor Licoben, General Manager of BENECO, and Engr. Ramel Rifani briefed the City Council members on the updates and adjustments being made under the amended Lifeline Rate Law and amendment to the Electric Power Industry Reform Act (EPIRA) of 2001, formally known as Republic Act No. 9136.
The new ERC resolution, which amends certain provisions of Republic Act No. 11552 enacted in 2021, was approved in February 2024 and is set for full implementation starting with the March 2026 billing period. The resolution raises the consumption threshold for qualified lifeline consumers from 45 kilowatt-hours (kWh) to 50 kWh per month.
Under the new schedule, households consuming up to 50 kWh per month and registered under the Pantawid Pamilyang Pilipino Program (4Ps) will automatically receive a 100% discount on their electric bills. Non-4Ps consumers using 50 kWh or below may also avail of the subsidy, provided they secure a certification from the City Social Welfare and Development Office (CSWDO) confirming their status as indigent or marginalized households.
Discount rates will follow a ladderized system based on consumption:
51-70 kWh: 35% discount
71-100 kWh: 20% discount
As of the latest records, BENECO has 354 registered lifeline beneficiaries under the existing program.
During the discussion, Councilor Betty Lourdes Tabanda inquired whether non-lifeline consumers are subsidizing the discounts for lifeliners. Licoben confirmed that a minimal charge equivalent to one centavo per kilowatt-hour is collected from non-lifeline consumers to sustain the fund. Any surplus or deficit in the collection will be adjusted through the fund’s administrator, ensuring the program’s stability.
Licoben also noted that while lifeline consumers will benefit from the discounts, overall electricity bills are expected to slightly increase due to rising oil prices. He added that standard senior citizen discounts of 5% for consumption up to 100 kWh per month remain in effect.
The Lifeline Rate Program, originally established under EPIRA, has been repeatedly extended, first for ten years in 2011, and again in 2021 for a new 50-year period ending in 2071. -Danella Corin David (SP PIO Intern/UB Polsci)
