Rules Implementing the Senior Citizen Discount on Electricity Consumption

Posted on January 26, 2011 by Imelda A. Manguiat The Energy Regulatory ommission !romulgated on "e#ember 1$, 2010 the Rules Im!lementing the "is#ounts to %uali&ied 'enior iti(en End)*sers and 'ubsidy &rom 'ubsidi(ing End)*sers on Ele#tri#ity onsum!tion under 'e#tions + and $ o& Re!ubli# A#t ,o. ---+. *nder the Im!lementing Rules, to a.ail o& the dis#ount, residential senior #iti(en #ustomers must meet the &ollo/ing #onditions0 1a2 The monthly residential #onsum!tion must not e3#eed 100 4/h5 i& the #onsum!tion e3#eeds 1004/h in any gi.en month, the senior #iti(en is not entitled to the dis#ount &or that !arti#ular month5 1b2 The meter must ha.e been registered in the name o& the senior #iti(en &or not less than one year5 1#2 The grant o& senior #iti(en dis#ount shall a!!ly !er household regardless o& the number o& senior #iti(ens residing therein5 1d2 The senior #iti(en must a!!ly !ersonally or through an authori(ed re!resentati.e to the distribution utility, and must submit !roo& o& age and #iti(enshi!, su#h as birth #erti&i#ate or senior #iti(en6s I", !roo& o& residen#e, #o!y o& the ele#tri# bill in the name o& the senior #iti(en, and !roo& o& authority i& a!!lying through a re!resentati.e. A senior #iti(en6s #enter or residential #are &a#ility may also a!!ly &or the dis#ount by submitting a #o!y o& its a##reditation /ith the "e!artment o& 'o#ial 7or4 and "e.elo!ment and !roo& o& o!eration &or at least si3 months. A #onsumer may a!!ly &or trans&er o& ele#tri# ser.i#e #ontra#t to a.ail o& the senior #iti(en dis#ount, !ro.ided that the re8uirements mentioned abo.e and the ne#essary do#uments to e&&e#t the trans&er o& ele#tri# ser.i#e are submitted. The Im!lementing Rules !ro.ide the &ormula &or #om!uting the dis#ount to be gi.en to senior #iti(ens, /hi#h under the la/ is a minimum o& $9 dis#ount &or senior #iti(ens, and at least $09 dis#ount &or senior #iti(ens #enter and residential #are:grou! homes. The Im!lementing Rules also !ro.ide the &ormula &or #al#ulating the 'enior iti(en 'ubsidy Rate to be #harged to all ;subsidi(ing end)users< /hi#h is de&ined under the Rules as re&erring to ;non)senior #iti(en and non)8uali&ied senior #iti(en end)users /ho shall bear the dis#ounts e3tended to 8uali&ied senior #iti(en end)users =e3#e!t li&eline #ustomers>.< *nder the Rules, the 'enior iti(en 'ubsidy Rate shall be #al#ulated and billed ea#h month to all subsidi(ing end)

users based on the total amount o& dis#ounts gi.en to senior #iti(ens during the !re.ious month. The dis#ounts gi.en to senior #iti(ens are, there&ore, ultimately !assed on to the #onsumers, /ho are not senior #iti(ens, and is not borne by the distribution utility or the go.ernment. This is in #ontrast to the senior #iti(ens dis#ount gi.en on other ty!es o& goods or ser.i#es, su#h as medi#ine or &ood, /here the dis#ount may be dedu#ted &rom the gross in#ome o& the establishment &or in#ome ta3 !ur!oses, /hi#h means that it is the go.ernment /hi#h bears the dis#ount in the &orm o& lo/er ta3 #olle#tion. ?i.en the high #ost o& ele#tri#ity in the !ast months or years, this is another addition to the ordinary #onsumers6 ele#tri#ity bill /hi#h they #an ill) a&&ord in these hard times.