ASELCO clarifies only one-centavo per kWh charge for regular consumers under Lifeline Subsidy Program

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By CHRIS V. PANGANIBAN

SAN FRANCISCO, Agusan del Sur —The Agusan del Sur Electric Cooperative, Inc. (ASELCO)  has clarified that regular customers were only charged one centavo per kilowatt-hour (kWh) in their March electricity bills, refuting social media claims that bills had doubled, with some netizens incorrectly blaming the Lifeline Subsidy program.

In response, ASELCO’s Acting Manager for Corporate Affairs and Communication, Mimi Mandahuyan-Ramos, clarified that these claims are inaccurate. While the Uniform National Lifeline Subsidy Rate (UNLSR)program does involve a minimal charge of one centavo per kWh for regular consumers who do not qualify for the subsidy, the increase in March electricity bills is attributed to other external factors, not the subsidy itself.

Many consumers expressed frustration on social media after receiving their March bills, accusing ASELCO of drastically raising rates. However, Ramos explained that the price increase was due to factors unrelated to the Lifeline Subsidy. The actual rate hike was caused by broader market influences, including changes in fuel prices and global energy trends, which affected electricity pricing.

ASELCO has since announced a slight increase in electricity rates for April. The new rates are P13.5118 per kWh for residential, P12.9042 per kWh for business establishments, and P10.4355 per kWh for industrial users. In comparison, March billing rates were P12.5322 per kWh for residential, P11.8591 per kWh for businesses, and P9.5259 per kWh for industrial.

This reflects an increase of P0.9796 per kWh for residential, P1.0451 per kWh for businesses, and P0.9096 per kWh for industrial consumers.

The Lifeline Subsidy, which was introduced to assist low-income households, covers about 40,000 households in Agusan del Sur. These households, which fall below the official poverty threshold and consume up to 50 kWh per month, will receive free electricity starting from their March billing.

ASELCO’s Acting General Manager, Engr. Emmanuel Galarse, clarified that the UNLSRapplies only to households consuming between zero and 50 kWh per month, equating to about P600 in electricity costs.

The subsidy is funded by the national government through the National Electrification Administration (NEA), which has allocated P24 million for the operational costs of this zero-billing initiative. The minimal charge of one centavo per kWh from regular consumers who do not qualify for the subsidy helps cover the costs.

Ramos further explained that the Lifeline Subsidy is part of Republic Act No. 9136 (EPIRA), a law that implements a socialized pricing mechanism for low-income consumers. This program is funded through a cross-subsidy, where the cost is shared among other consumers via the one-centavo charge.

ASELCO emphasized that it does not profit from the Lifeline Subsidy; instead, the charge is passed directly to the qualified beneficiaries, as required by law.

The cooperative also stressed that it has no control over the rates or charges, as all pricing mechanisms are regulated and approved by the Energy Regulatory Commission (ERC). ASELCO clarified that it has not increased its Distribution, Supply, and Metering (DSM)charge since 2010, which is its only direct source of income.

“The government creates the laws, the ERC monitors and approves the rates, and ASELCO simply implements them,” ASELCO stated in a public advisory posted in their social media page.

In response to the growing concerns over the rate increase, ASELCO reiterated that objections to the implementation of electricity rates should be directed to the appropriate channels, such as Congress or regulatory bodies like the ERC, as these are the correct venues for addressing grievances related to energy policies.

As the summer months approach and electricity consumption typically rises, ASELCO urged consumers to continue practicing energy conservation to manage their bills more effectively. The cooperative emphasized that energy efficiency will be crucial in minimizing the impact of increased electricity usage during the hotter months.

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