Filipino Households Get Relief from Rising Electricity Bills with LANDBANK Program

In response to President Ferdinand R. Marcos Jr.’s directive, the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) have encouraged electricity distribution utilities to utilize the Anti-Bill Shock Lending Program from LANDBANK.

Under the ANTI BILL SHOCK Lending Program, LANDBANK offers financing to distribution utilities at concessional rates. This financial support allows utilities to spread out the incremental increases in their customers’ bills over nine months without transferring the borrowing costs to consumers, who may struggle to pay the full amount upfront.

“As we confront the challenges of rising temperatures and increased energy demands, we are working closely with other government agencies to ease the burden of Filipino households from the expected surge of electricity costs. LANDBANK’s involvement in this effort is crucial, highlighting our unified stride towards safeguarding the welfare of our citizens,” said Energy Secretary Raphael P.M. Lotilla.

Launched in April 2023 with an initial fund of P1.5 billion, the Anti-Bill Shock Lending Program (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 Konsumer’s Electricity) aims to support the energy sector by providing accessible financing to power distribution companies.

“The ANTI BILL SHOCK Program forms part of LANDBANK’s commitment to advancing the country’s energy sector by making more accessible to power distribution companies and other players in the industry. We are poised to forge deeper collaborations within the sector, advocating for the interests of both energy providers and consumers,” said LANDBANK President and CEO Lynette V. Ortiz.

Eligible power distributors can loan up to 80% of the incremental increase in their power generation and transmission costs, subject to the repayment capacity of the utilities or up to three times the average billings of their power suppliers. Borrowers must implement their own “anti-bill shock” programs to shield their clients from expected increases in electricity bills. This program is available year-round.

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,” said Energy Regulatory Commission Chairperson and CEO Atty. Monalisa C. Dimalanta.

Source: Tap ANTI BILL SHOCK Lending Program to make electricity rates affordable, distributors urged