Agusan electric co-op: Lifeline clients subsidy at 1 centavo/kWh only
SAN FRANCISCO, Agusan del Sur — The Agusan del Sur Electric Cooperative, Inc. (ASELCO) has clarified that regular customers were charged only one centavo per kilowatt-hour (kWh) in their March electricity bills, refuting claims that bills had doubled due to the Lifeline Subsidy program.
ASELCO’s acting manager for corporate affairs and communication, Mimi Mandahuyan-Ramos, said the price increase was due to factors unrelated to the lifeline subsidy.
She explained the actual rate hike was driven by broader market influences, including changes in fuel prices and global energy trends, which affected electricity pricing.
While the Uniform National Lifeline Subsidy Rate (UNLSR) program involves a minimal charge of one centavo per kWh for regular consumers who do not qualify for the subsidy, the increase in March electricity bills was attributed to other external factors, not the program, the cooperative said.
ASELCO has since announced a slight increase in electricity rates for April. The new rates are P13.5118 per kWh for residential users, P12.9042 for business establishments, and P10.4355 for industrial consumers.
READ: Explainer: What’s driving the latest spike in electricity prices
In comparison, March billing rates were P12.5322 per kWh for residential users, P11.8591 for businesses, and P9.5259 for industrial users.
This reflects an increase of P0.9796 per kWh for residential consumers, P1.0451 for businesses, and P0.9096 for industrial users.
The Lifeline Subsidy, introduced to assist low-income households, covers about 40,000 households in Agusan del Sur. These households, which fall below the official poverty threshold and consume up to 50 kWh per month, receive free electricity starting from their March billing.
ASELCO Acting General Manager Engr. Emmanuel Galarse clarified that the UNLSR applies only to households consuming between zero and 50 kWh per month, equivalent to about P600 in electricity costs.
The national government funds the subsidy through the National Electrification Administration (NEA), which has allocated P24 million for the zero-billing initiative’s operational costs. The minimal charge of one centavo per kWh from regular consumers who do not qualify helps cover the costs.
Ramos further explained that the Lifeline Subsidy is part of Republic Act No. 9136 (EPIRA), which implements a socialized pricing mechanism for low-income consumers. The program is funded through a cross-subsidy, where costs are shared among other consumers via the one-centavo charge.
ASELCO said it does not profit from the Lifeline Subsidy; instead, the charge is passed directly to qualified beneficiaries, as required by law.
The cooperative also said that it has no control over rates or charges, as all pricing mechanisms are regulated and approved by the Energy Regulatory Commission (ERC). ASELCO clarified that it has not increased its Distribution, Supply, and Metering (DSM) charge since 2010, which remains its only direct source of income.
“The government creates the laws, the ERC monitors and approves the rates, and ASELCO simply implements them,” the cooperative said in a public advisory posted on its social media page.
In response to growing concerns over the rate increase, ASELCO reiterated that objections to electricity rates should be directed to the appropriate channels, such as Congress or regulatory bodies like the ERC, which are the proper venues for addressing grievances related to energy policies.
As the summer months approach and electricity consumption typically rises, ASELCO urged consumers to continue practicing energy conservation to better manage their bills.
The cooperative said energy efficiency will be crucial in minimizing the impact of increased electricity usage during the hotter months. /mcm
