Rep. Arthur C. Yap of the Murang Kuryente Partylist has filed House Bill No. 6192, which seeks to eliminate the existing cross-subsidy mechanism in electricity billing and replace it with direct government subsidies for low-income households.
Under the current system, regular-paying residential consumers subsidize the electricity costs of lifeline rate customers through charges embedded in their monthly bills.
The proposed measure would shift the funding responsibility for these subsidies from electricity consumers to the national government.
The bill directs the Department of Social Welfare and Development (DSWD) to make direct payments to electric utilities or distribution companies on behalf of qualified low-income households, removing the cross-subsidy from the bills of non-lifeline consumers.
Yap said the legislation aims to reduce electricity rates for ordinary paying customers while ensuring that low-income families continue to receive assistance.
House Bill No. 6192 has been referred to the House Committee on Energy for further study and deliberation.