MANILA — Senator Bam Aquino said electricity subsidies and mandated discounts should be funded through the national budget instead of being charged to consumers, as he raised concerns over the financial burden on non-beneficiary households.

Aquino made the statement in filing Senate Resolution No. 375, which seeks an inquiry by the Senate Committee on Energy into the structure, targeting, and funding of existing power subsidies, including the lifeline rate under Republic Act No. 9136 or the Electric Power Industry Reform Act.

“Busisiin natin ang karagdagang bayad na ito. Marami nang naghihirap na Pilipino at middle class. Hindi na dapat dagdagan ang gastusin ng taumbayan kung may pera naman ang gobyerno para sa ayuda,” Aquino said.

“Mahalagang malaman natin ang sistema ng pangongolekta at hindi ito napapasan ng mga kapwa naghihirap na kababayan natin sa middle class,” he added.

The senator said reviewing alternative funding options, such as partial or full allocation from the national budget, could improve transparency, accountability, and long-term sustainability of subsidy programs.

He also stressed the need to prevent unintended or disproportionate costs being passed on to electricity users.

Initial estimates indicate that subsidy-related charges may increase electricity rates by several centavos per kilowatt-hour, or about P20 to P100 monthly for households not covered by the subsidies, depending on consumption.

Aquino filed the resolution following complaints that subsidies for marginalized consumers are being recovered through a cross-subsidy scheme reflected in electricity bills.

“Current reliance on cross-subsidy mechanisms results in a redistribution of costs that may place a disproportionate and cumulative burden on non-beneficiary consumers, particularly low- and middle-income households who do not qualify for existing subsidies,” he said.

He added that social protection measures should not impose additional strain on consumers already affected by rising costs, including those linked to the oil crisis.

Under Section 73 of Republic Act No. 9136, a lifeline rate is granted to marginalized electricity users who have difficulty paying full costs. Republic Act No. 11552 expanded coverage to include beneficiaries of the Pantawid Pamilyang Pilipino Program.

Rules from the Energy Regulatory Commission provide that households consuming up to 50 kilowatt-hours per month may receive discounts of up to 100 percent on electricity charges.

Senior citizens are also entitled to a 5 percent discount on electricity consumption of up to 100 kilowatt-hours per month under Republic Act No. 9994 or the Expanded Senior Citizens Act of 2010, which may likewise result in costs being shifted to other consumers.

While Aquino acknowledged the importance of subsidies in helping low-income households access electricity, he emphasized the need to ensure these programs are implemented fairly and sustainably.

“The objective of this policy review is not to remove or diminish the lifeline rate subsidy, but to ensure that it remains well-targeted, fiscally sustainable, and equitably financed, without unduly shifting the burden to other electricity consumers,” he said.