Acting on the directive of President Ferdinand R. Marcos Jr., the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) urged electricity distribution utilities to tap the Anti Bill Shock Lending Program of the Land Bank of the Philippines (LANDBANK) to make electricity rates affordable for consumers.
Under the ANTI BILL SHOCK Lending Program, LANDBANK provides financing to distribution utilities at concessional rates, enabling them to spread out the incremental increases in their customer’s billing by up to nine months without passing the borrowing cost to consumers who cannot afford to pay at full cost.
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 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 Konsumer’s Electricity.
“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 may loan up to 80% of the incremental increase on their power generation and transmission charges, but not to exceed the repayment capacity of the distribution utilities or three times the average billings of its power suppliers.
Borrowers are required to implement their own “anti-bill shock program” to protect their respective clients from the expected increase in electricity bills. The program is available any time of the year.
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.
As of March 2024, LANDBANK has approved P450 million in loans to electric cooperatives under the ANTI BILL SHOCK Lending Program. ###