Ex-finance chief seeks full review of power subsidies

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May 8, 2026 | 12:00am

MANILA, Philippines —  Former finance secretary Gary Teves has called for a review of the subsidized electricity scheme for poor households and other discounts, saying this could impact the government’s fiscal position.

The implementation of the Lifeline Rate Program merits a “comprehensive review” amid persisting economic pressures faced by Filipino families due to elevated energy prices and broader inflationary conditions, the Arroyo-era official told The STAR.

“In principle, transferring such costs away from electricity bills could provide additional relief to Filipino households. However, any policy shift must also be carefully evaluated in the context of the government’s broader fiscal position and competing national priorities,” Teves added.

Sen. Bam Aquino previously floated this proposal after frustrated households blasted soaring bills on social media.

The suggested review falls under the mandate of the Joint Congressional Energy Commission, in coordination with the Energy Regulatory Commission and the Department of Energy.

Teves also flagged the weak uptake among qualified beneficiaries, noting that just 7.3 percent or around 330,000 of 4.5 million eligible households signed up for the program as of July 2025.

He noted that the low turnout raises questions on potential reasons such as a matter of poor public awareness, burdensome registration procedures or other implementation challenges that limit access for intended beneficiaries.

Sought for comment, the Department of Budget and Management (DBM) said that plugging electricity subsidies and mandated discounts into the national budget would require fiscal space, whether from existing revenues, fresh sources or reshuffled appropriations.

The national government operates within a “defined expenditure program” under the General Appropriations Act, the DBM said in a statement to The STAR.

“Any proposal to shift subsidies to the national budget will necessarily require corresponding fiscal space,” the agency said.

The DBM said any additional provision would have to be supported by available revenues, as determined by the Department of Finance and would be subject to the overall fiscal program and deficit targets.