Discounts for Senior Citizens

Expanded Senior Citizens Act of 2010, R.A. 9994

Definition of a Senior Citizen

A senior citizen is an elderly Filipino citizen who is a resident of the Philippines, and who is sixty (60) years old or above. It may apply to senior citizens with “dual citizenship” status provided they prove their Filipino citizenship and have at least six (6) months residency in the Philippines.

Under the Expanded Senior Citizens Act of 2010 or R.A. 9994, a senior citizen may avail of a 5% discount on electric bill payments.

Qualifications for the discount of a senior citizen on their electric bill

Senior citizens availing of the discount are subject to the following qualifications:
(REFERENCE: ERC Resolution No. 23, Series of 2010, A Resolution Adopting the Rules Implementing the Discounts to Qualified Senior Citizen End-Users and Subsidy from the Subsidizing End-Users on Electricity Consumption Under Section 4 & 5 of Republic Act No. 9994 (1/5/2011))

  • The individual meter is registered in the name of the senior citizen residing therein.
  • The monthly consumption does not exceed 100 kWh.
  • If the monthly consumption exceeds 100 kWh, no discount can be given.
  • The discount is only applicable during the billing month in which the qualified senior citizen consumes less than 100 kWh.
  • Discount shall apply per household regardless of the number of senior citizens residing therein.
  • A Residential Senior citizen with multiple accounts can only avail of the senior citizen discount for the place where he/she actually resides.
  • To ensure eligibility, applications have to be renewed annually to ensure that they are still eligible for the said benefit and/or still existent at the time of renewal.

Rate for senior citizen’s discount on the electric bill

For households, a 5% discount is applied to generation, transmission, distribution, supply, metering, systems loss charges and lifeline subsidy discount. (Reference: Article 12 of R.A. 9994. Utility Discounts Section 1. Five (5%) Discount – The grant of minimum of five percent (5%) discount relative to the monthly utilization of water and electricity by households with senior citizens;…”)

For centers or residential facilities/institutions or group homes, a 50% discount is applied to
generation, transmission, distribution, supply, metering and systems loss charges.

4 CONDITIONS
1. Senior citizen centers, residential care institutions or group homes must be DSWD-accredited;
2. either government run OR organized and operated by non-stock, non-profit domestic corporations primarily for the purpose of promoting the well-being of abandoned, neglected, unattached or homeless senior citizens;
3. in operation for at least 6 months; and
4. with a separate meter for electricity

Requirements to avail of the senior citizen’s discount

1. Present a valid I.D. of the senior citizen or a valid document indicating the age of the Filipino Citizen.
2. Present a Barangay Clearance of the senior citizen’s barangay
3. Present the previous electric bill which is in the name of the senior citizen

If authorized representative

Present everything stated above, along with a signed authorization letter from the senior citizen with I.D. of authorized representative
Note that applications for senior citizen discounts are valid only for one (1) year; there must be a renewal of the application the following year.

Where in the electric service contract is not in the name of the senior citizen institution/facility, the following steps can be made.

They can apply for a change of name in meter ownership at the customer service department (CSD) at the PECO Main Office.

However, the following provisions have to be met:

1. If a residential unit is rented and the electric service contract is registered in the name of the owner, tenant must submit copy of agreement that the owner is willing to transfer the electric service contract in the name of tenant who is a senior citizen.

2. In case of facilities/institutions or group homes where the contract is under another entity, the operator must submit document/s that the entity has agreed to transfer said electric service contract to the name of the senior citizen center.

What happens next once an application has been submitted?

• PECO will evaluate and process applications within 15 calendar days upon receipt of complete documents
• Within the same period, PECO will inform the applicant through a letter of its decision on the application
• If approved, the discount will apply in the next billing period after approval
• For disapproved applications, PECO will state the reason/s for disapproval

Is it true that non-senior citizens and non-qualified senior citizen consumers will bear the discounts and adjustments extended to qualified senior citizen consumers?

Yes, non-senior citizen and non-qualified senior citizen consumers of the electric distribution utility shall bear the discounts and adjustments extended to qualified senior citizen consumers.

All lifeline consumers are excluded from the subsidizing consumers’ base.

The reason for consumers subsidizing other consumers is to provide aid for marginalized electricity end-users. This is consistent with the government’s social policy.