ERC Resolution No. 02, Series of 2026 – Uniform National Lifeline Subsidy Rate and Fund Mechanism
ERC established a uniform national lifeline subsidy rate and created a centralized Lifeline Subsidy Fund administered by PSALM to standardize support for marginalized electricity consumers and enhance program transparency and coverage nationwide.
2/6/20263 min read
SUMMARY
WHAT IT IS
Establishes a uniform national lifeline subsidy rate and consumption threshold for the Lifeline Program under Section 73 of EPIRA, and creates a National Lifeline Subsidy Fund to be administered by PSALM.
Distribution Utilities
Electric Cooperatives
Economic Zone Administrators
Electricity end-users (lifeliners and non-lifeliners)
WHO IS AFFECTED
KEY DEADLINES
New LSR and discount structure effective the next billing month after effectivity.
First remittance deadline: March 15, 2026 (for February 2026 collections/discounts).
Annual audited report due by June 30 each year.
TAKEAWAY
Collection Agents must update billing systems to apply the new LSR and threshold, and ensure timely remittance and reporting to PSALM.
Marginalized end-users consuming up to 50 kWh/month will benefit from a 100% discount under the new uniform threshold.
KEY POINTS
Establishes a Uniform National Lifeline Subsidy Rate (LSR) of PhP0.01/kWh to be collected from all subsidizing electricity end-users not enrolled in the Lifeline Subsidy Program or whose consumption exceeds the lifeline threshold.
Applies to all Distribution Utilities (DUs), including private DUs, electric cooperatives, economic zone administrators, local government units acting as DUs, and the National Grid Corporation of the Philippines (NGCP) as Collection Agents.
Creates a Lifeline Subsidy Fund (LSF) to be administered by the Power Sector Assets and Liabilities Management Corporation (PSALM), with collections to be revenue-neutral and not part of Collection Agents’ or PSALM’s revenues.
Sets a uniform national lifeline consumption threshold of 0-50 kWh with a 100% discount; DUs with higher existing thresholds retain current discount levels for consumption above 50 kWh until further direction.
Mandates Collection Agents to remit the net amount of Lifeline Subsidy to PSALM on or before the 15th day of the succeeding month, with detailed certified reports.
Allows Collection Agents to draw from the LSF if monthly lifeline discounts provided exceed collections, with PSALM required to disburse funds within 15 days of report submission.
Requires PSALM to submit monthly reports to the ERC on collections, remittances, and disbursements; mandates annual audited reports from Collection Agents by June 30 each year.
Imposes interest penalties for delayed or partial remittance by Collection Agents or delayed payment by PSALM, and provides for administrative sanctions for non-compliance.
Provides for annual review by the ERC of the sufficiency of the LSF, the lifeline consumption threshold, and the LSR, with adjustments subject to public consultation.
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ERC Resolution No. 02, Series of 2026
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Tags: Lifeline Subsidy, Uniform Rate, Consumption Threshold, Collection Agents, PSALM Fund, Marginalized Consumers