The Energy Regulatory Commission (ERC) expects broader electricity access for low-income households after approving a unified national lifeline subsidy system.

In a statement issued on Saturday, the regulator said the recently approved Resolution No. 02, Series of 2026 is designed to dismantle long-standing disparities in electricity subsidies by replacing utility-specific lifeline rates with a single national framework.

Benefits standardized

The reform standardizes benefits across all regions and distribution utilities (DUs), ensuring that marginalized households receive the same level of support regardless of where they live.

Under the resolution, a uniform Lifeline Subsidy Rate of P0.01 per kilowatt-hour will be collected from subsidizing electricity end-users nationwide.

These collections will be pooled into a National Lifeline Subsidy Fund administered by the Power Sector Assets and Liabilities Management Corp. to transparently fund lifeline discounts granted to qualified beneficiaries.

The ERC said it adopted a uniform national lifeline consumption threshold of 0 to 50 kilowatt-hours, granting qualified marginalized end-users a 100 percent discount on applicable electricity charges within this level.

DUs with existing ERC-approved thresholds above 50 kilowatt-hours will retain their current discount structures for higher consumption until otherwise directed by the Commission.

Uniform national lifeline rate

“The adoption of a uniform national lifeline rate directly benefits low-income and marginalized electricity consumers by ensuring consistent and predictable discounts, regardless of their location or DU,” the ERC said.

“By shifting from DU-specific lifeline rates to a national framework, the ERC addresses disparities in subsidy levels and broadens the reach of the Lifeline Program to more households nationwide,” it added.

For consumers outside the Lifeline Program or those whose usage exceeds the threshold, the P0.01 per kilowatt-hour contribution will serve as a minimal, shared socialized charge to broaden support for vulnerable sectors while keeping the burden light for paying customers.

The ERC also said placing the Lifeline Subsidy Fund under PSALM will strengthen accountability and sustainability through clear reporting, remittance, disbursement and audit requirements, alongside annual reviews to ensure the fund remains sufficient as coverage expands.