MANILA, Philippines -- The government’s P500 one-time cash subsidy for lifeline power users, or those using at most 100 kilowatt-hours a month, has reached the provinces with the National Electrification Administration’s release of more than P420 million to 26 electric cooperatives nationwide.
The disbursement, part of the “Katas ng VAT-Pantawid Kuryente” program of the government, would be enough to cover 985,439 lifeline customers in seven regions.
The NEA on June 12 signed an agreement with the Department of Social Welfare and Development for the implementation of the “Pantawid Kuryente” program, which aimed to help alleviate the burden of the poor, amid the rising prices of fuel, electricity, rice and other basic commodities.
Under the agreement, the DSWD would transfer to the NEA the amount that would then be released to the covered electric cooperatives for distribution to qualified recipients.
NEA initially released P233.4 million to nine electric cooperatives -- La Union Electric Cooperative Inc., Central Pangasinan Electric Cooperative Inc., First Laguna Electric Cooperative Inc., Aklan Electric Cooperative Inc., Capiz Electric Cooperative Inc., Iloilo I, II and III Electric Cooperatives Inc. and Cebu II Electric Cooperative Inc.
Another P172.3 million was later given for distribution to 17 rural power distributors, namely Zambales I Electric Cooperative Inc., Pampanga I Electric Cooperative Inc., Marinduque Electric Cooperative Inc., Tablas Island Electric Cooperative Inc., Quezon II Electric Cooperative Inc., Romblon Electric Cooperative, Antique Electric Cooperative Inc., Bantayan Electric Cooperative Inc., Biliran Electric Cooperative Inc., Samar II Electric Cooperative Inc., Northern Samar Electric Cooperative Inc., Eastern Samar Electric Cooperative Inc., Leyte II, III, IV and V Electric Cooperatives Inc. and Southern Leyte Electric Cooperative Inc.
Apart from the one-time P500 subsidy for lifeline power users, Consumer and Oil Price Watch chair Raul Concepcion also suggested that the government use its value-added tax windfall to provide more subsidies to poor consumers.
Subsidies could be given to help defray costs associated with the use of electricity and liquefied petroleum gas and with the purchase of basic goods, he said.
Another form of help for the poor would be the removal of the VAT from the electricity bills of consumers within the lifeline category, he said. Households within the lifeline bracket should also be exempted from the 12-percent VAT imposed on liquefied petroleum gas.
“The cost of the subsidy is P125 million monthly and can be sourced from the royalties from Malampaya,” he said.
