The rules to govern the 5.0-percent discount on the electricity bills of senior citizens will be subjected to public consultation by the Energy Regulatory Commission (ERC) so the distribution utilities can be properly guided on the policy’s implementation.

The public consultations will be undertaken nationwide – with Luzon stakeholders enjoined on it this September 22; Visayas on September 29-30; and Mindanao on October 6-7.

ERC executive director Francis Saturnino Juan noted that “the rules are aimed at providing transparency in the grant of senior citizen discounts and in the calculation of the subsidy rates, and at protecting the interest of the public which will be affected by the rates and services of the distribution utilities.”

The grant of rate discounts to the elderly is underpinned by Section 4 and 5 of Republic Act 9994, which provides that qualified senior citizens will be “granted a five (5%) percent discount on electricity consumption provided that the installed electric meter is registered under the name of senior citizen and that the monthly electricity consumption should not exceed 100 kWh.”

The policy similarly prescribes that “aside from the discount to be enjoyed by the senior citizens, the government institution or non-stock, non-profit domestic organizations caring for senior citizens shall be entitled to 50% discount on their monthly electricity bill.”

The law’s implementing rules and regulations took effect July this year. In particular, it mandated the ERC to craft the supplementing guidelines on the senior citizen discounts within six months from the specified effectivity date.

In the draft rules already drawn up by the power industry regulator, a formula has been prescribed on how to calculate the discounts both for the senior citizens and the specified home care facilities.

The ERC-proposed rules similarly set forth a formula in computing over- and under-recoveries that will eventually merit cost adjustments by the DUs depending on approval to be granted by the regulator.

The draft guidelines further direct DUs on the submission of reportorial requirements relative to the implementation of the senior citizen discount scheme -- aligned with the Uniform Reportorial Requirements (URR) institutionalized by the ERC.

There have also been provisions for fines and penalties against violators, hence, ensuring all relevant parties’ compliance to the policy.