NASECORE, led by President Pete Ilagan, refutes the Department of Energy’s assertion that subsidizing electricity for Filipino households is “impossible”. The stance is a policy choice rather than a fiscal limitation.
Existing government programs such as the Pantawid Pamilyang Pilipino Program (4Ps), AYUDA, and fuel subsidies for PUV operators demonstrate the state’s capability to deliver targeted aid – if it is a priority.
“If the government can allocate funds for these critical initiatives, it is unconscionable to dismiss electricity subsidies as unfeasible,” Pete Ilagan stated.
There are structural inequities at play, particularly in MERALCO’s rates where residential consumers face higher distribution charges compared to commercial and industrial users.
“Ordinary families are forced to subsidize big businesses. Why can’t this logic be reversed to prioritize struggling households?” Ilagan said.
The recent P19.9 billion MERALCO refund, distributed over 36 months without interest, is evidence of mismatched priorities. The current refund scheme proves that consumer funds are used not to benefit them, but rather for questionable purposes. Households see little relief from soaring electricity bills.
Targeted electricity subsidies yield broader economic benefits, including enhanced investor confidence, reduced costs for micro-entirprises, and job creation.
“Subsidies are not just socially just – they are economically strategic. The government must recognize this dual imperative,” says Ilagan.
We call for DOE to realign its policies to prioritize vulnerable consumers.
“Electricity is a basic right, not a luxury. The fiscal tools exist – what’s missing is the political will,” concluded former DOE Usec. Pete Ilagan.