By Francis Allan L. Angelo
The Department of Energy (DOE) and the Energy Regulatory Commission (ERC), under the directive of President Ferdinand R. Marcos Jr., are urging electricity distribution utilities to utilize the Anti Bill Shock Lending Program offered by the Land Bank of the Philippines (LANDBANK).
The program aims to make electricity rates more affordable for consumers by providing loans to utilities to help manage seasonal cost surges without burdening consumers.
Energy Secretary Raphael P.M. Lotilla highlighted the necessity of this initiative amidst rising temperatures and increased energy demands.
“As we confront these challenges, we are working closely with other government agencies to ease the burden of Filipino households from the expected surge of electricity costs,” Lotilla said in a press statement.
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 Consumer’s Electricity.
It also offers concessional financing to distribution utilities, allowing them to spread incremental cost increases over up to nine months.
LANDBANK President and CEO Lynette V. Ortiz expressed the bank’s dedication to supporting the energy sector.
“The ANTI BILL SHOCK Program forms part of LANDBANK’s commitment to advancing the country’s energy sector by making power more accessible to distribution companies and other players in the industry,” Ortiz said.
Under the program, eligible power distributors may borrow up to 80% of the incremental increase in their power generation and transmission charges.
However, the amount borrowed cannot exceed the repayment capacity of the utilities or three times the average billings of its power suppliers.
Each borrowing utility is required to implement its own “anti-bill shock program” to shield clients from the expected rise in electricity bills. The program is available year-round.
ERC Chairperson and CEO Atty. Monalisa C. Dimalanta emphasized the mutual benefits of the program.
“The ANTI BILL SHOCK Lending program of LANDBANK presents a win-win situation for our electric distribution utilities 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,” Dimalanta said.
As of March 2024, LANDBANK has approved P450 million in loans to electric cooperatives under this program.
