Energy stability needs sustainable policy and responsible citizenry 

February 6, 2021

 

CitizenWatch Philippines raises concern over the potential risk of the recent approval of the President to extend the ‘No Disconnection’ policy for “lifeliners” until the end of February. Several partylist groups warned that there will be a huge implication in the financial stability of all stakeholders in the energy supply chain should a prolonged policy is imposed by the government. These groups represent non-profit electric cooperatives servicing customers in the provinces.

 

The “No Disconnection” policy was first implemented by the Energy Regulatory Commission in October of 2020 up to the end of December for “lifeliners,” or those with consumption of 100 KwH or less.

 

Meralco further gave their unpaid “lifeliner” accounts another extension until the end of January 2021 but has assured its customers that they are not prioritizing disconnection and will be open to talk with each customer on how to settle their accounts.

 

The extension of the “No Disconnection” policy comes with potential risks. If consumers refuse to pay their distribution utility bills, distribution utilities (DUs) might fail to pay their obligations to generating companies and other suppliers. This revenue disruption will then affect the operations of power generation companies and their ability to produce electricity for the DUs to distribute in their franchise areas. This is a damaging chain reaction that will further worsen our struggling economy.

 

As consumer advocates, we appreciate the intended benefit to the “lifeline” electricity consumers. However, indefinite extension of the “No-Disconnection” policy may give temporary reprieve but will eventually balloon to even bigger arrears that still have to be settled.

 

The possible repercussions that may befall millions of households should this result in power outages will be more damaging and more expensive for ordinary consumers.

 

CitizenWatch Philippines calls for responsible citizenry and for a more dynamic and more sustainable policy approach that will be sensitive to the situation of each consumer while balancing the need to ensure the uninterrupted supply of electricity.

 

We as consumers, have the right to expect quality goods and services, and as consumers, we have a matching obligation to pay.

 

As we demand reliable power supply from the power and energy sector, we must in turn honor our responsibility as consumers to pay for the electricity we have consumed.

 

A responsible citizenry working together as a society is key to economic recovery.