THE Department of Energy (DOE) and Energy Regulatory Commission (ERC) ordered power distribution utilities to avail of a state-run bank’s Anti-Bill Shock lending program to make electricity rates affordable, the Presidential Communications Office (PCO) said.
President Ferdinand Marcos Jr. had instructed the DOE and ERC to issue the order. The Anti-Bill Shock lending program was being implemented by the Landbank of the Philippines (LBP).
“As we confront the challenges of rising temperatures and increased energy demands, we are working closely with other government agencies to ease the burden of Filipino households from the expected surge of electricity costs. Landbank’s involvement in this effort is crucial, highlighting our unified stride towards safeguarding the welfare of our citizens,” DOE Secretary Raphael Lotilla said.
For her part, ERC Chairperson and Chief Executive Officer Monalisa Dimalanta said the LBP’s lending program presents a “win-win situation” for both the electricity distribution utilities and the consumers.
“It helps ensure sufficient and affordable energy access nationwide while protecting Filipino households from electricity bill shock during the summer season when power consumption is expected to surge,” Dimalanta said.
Under the LBP anti-bill shock lending scheme, Landbank will provide financing to distribution utilities at concessional rates, enabling them to spread out the incremental increases in their customers’ billings by up to nine months without passing the borrowing cost to consumers who cannot afford to pay at full cost.
Each power distributor may borrow up to 80% of the incremental increase on their power generation and transmission charges, but not to exceed the repayment capacity of the distribution utilities or three times the average billings of its power suppliers. Likewise, the program requires borrowers to implement their own “anti-bill shock program” to protect their clients from the expected increase in electricity bills. The program is available any time of the year.
The LBP launched the Anti-Bill Shock lending program in April 2023.
LBP President and Chief Executive Officer Lynette Ortiz said the Anti-Bill Shock lending program forms part of the state-run bank’s commitment to advancing the country’s energy sector by making credit more accessible to power distribution companies and other players in the industry.
“We are poised to forge deeper collaborations within the sector, advocating for the interests of both energy providers and consumers,” she added.
Since 2023, the LBP approved P450 million worth of loans to electricity cooperatives under the program. (GMA Integrated News)
