Power utilities urged to tap ‘ANTI BILL SHOCK’ program to make bills affordable for consumers
By Alena Mae S. Flores – May 3, 2024, 4:48 pm
from manilastandard.net
The Department of Energy (DOE) and the Energy Regulatory Commission (ERC) urged electricity distribution utilities (DUs) to tap the ANTI BILL SHOCK Lending Program of the Land Bank of the Philippines to make electricity rates affordable for consumers.
The agencies issued the statement acting on the directive of President Marcos.
LandBank provides financing to DUs at concessional rates under the ANTI BILL SHOCK Lending Program, enabling them to spread out the incremental increases in their customer’s electric bills by up to nine months without passing the borrowing cost to consumers who cannot afford to pay at full cost.
“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,” said Energy Secretary Raphael Lotilla.
LandBank’s involvement in this effort is crucial, highlighting our unified stride towards safeguarding the welfare of our citizens,” he added.
The ANTI BILL SHOCK Lending Program, launched in April 2023 with an initial fund of P1.5 billion, stands for “Assistance to Narrow and Trim down the Incremental power cost increase via Bridge financing Initiatives of LandBank to Lower and Spread-out Hot summer-triggered monthly Consumption on Konsumer’s Electricity.”
Eligible power distributors may loan up to 80 percent of the incremental increase on their power generation and transmission charges, but not to exceed the repayment capacity of the DUs or three times the average billings of its power suppliers.
“The ANTI BILL SHOCK Program forms part of LandBank’s commitment to advancing the country’s energy sector by making it more accessible to power distribution companies and other players in the industry,” said LandBank president and chief executive Lynette Ortiz.
“We are poised to forge deeper collaborations within the sector, advocating for the interests of both energy providers and consumers,” Ortiz added.
Borrowers are required to implement their own “Anti-Bill Shock” program to protect their respective clients from the expected increase in electricity bills. The program is available any time of the year.
Energy Regulatory Commission chairperson Monalisa Dimalanta said the program presents a win-win situation for the DUs and consumers.
“It helps ensure sufficient and affordable energy access nationwide, while protecting Filipino households from electricity bill shock during summer season when power consumption is expected to surge,” said Dimalanta.
LandBank has approved P450 million in loans to electric cooperatives under the ANTI BILL SHOCK Lending Program as of March 2024.
