Expanded Senior Citizens Act of 2010, R.A. 9994
Resolution No. 23 of 2010
Q&A - Discount on Electric Bill Payments

1.  Is Davao Light accepting application for a senior citizen discount?

• YES, Davao Light is now accepting application for senior citizen discount from senior citizens, Senior Citizen Center, Residential Care Facility/Institution and Group Home.

Note: Effectivity of the implementing rules and regulations of R.A. 9994 is on January 21, 2011.

2.  What are the requirements in applying for the senior citizen discount?

For senior citizens availing the discount, the application will be subject to an inspection and verification of a Customer Retail Service Inspector. Once application is approved, the qualified residential senior citizen must comply with the following qualifications and requirements:

• The electrical service contract must be under the name of the qualified senior citizen.

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

• The grant of senior citizen discount shall apply per household regardless of the number of senior citizens residing therein.

• If the senior citizen has multiple electric service contracts with the electric distribution company, he/she can only avail the discount for the place where he/she actually resides.

• The senior citizen shall apply for the senior citizen discount personally or through an authorized representative to the electric distribution utility and must submit the following requirements:
  

•  Proof of citizenship such as valid senior citizen’s Identification card issued by the Office of Senior Citizen’s Affairs (OSCA) where the citizen resides. In lieu of the ID from OSCA, he/she may present a birth certificate or any proof of birth, a Philippine passport or any government ID card showing proof of age and citizenship.
  
•  Proof of billing such as a copy of electric bill issued in the name of the senior citizen. The bill, which will serve as reference, is not necessarily under the name of the senior citizen at the time of the application.
  
•  Proof of authority (if through a representative) such as a valid ID card of the representative and authorization letter duly signed or thumb-marked by the senior citizen end-user which shall be valid only for a period of 1 year from date of issuance

For Senior Citizen Center and Residential Care Facility/Institutions or Group Homes’ operators availing the discount, the application will be subject to an inspection and verification of a Customer Retail Service Inspector. Once application is approved, the following requirements must be complied:

• Must submit a photocopy of the approved Department of Social Welfare and Development (DSWD) accreditation;

• Must have a separate meter for the said utilities/services;

• Must submit a document or any proof showing that the electric service contract is under the name of the senior citizen center, residential care facilities/ institutions or group homes. 
   

3. How much is the discount I can avail of?

For qualified residential senior citizen: 

• 5% on customers’ applicable electric bill components

(Reference: “IRR of R.A. 9994 - Article 12. UTILITY DISCOUNTS Section 1. Five (5%) Discount - The grant of a minimum of five percent (5%) discount relative to the monthly utilization of water and electricity by households with senior citizens;…”)

                         (Section 1 & 2 of the Resolution no. 23.)

For Senior Citizen Centers and Residential Care Facilities/Institutions or Group Homes

• 50% discount on customers’ applicable electric bill components

(Reference: “IRR of R.A. 9994 - Article 12. UTILITY DISCOUNTS Section 2. Fifty (50%) Discount - The grant of 50% discount on electricity for DSWD accredited senior citizen centers and residential care institutions and group homes that are 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.…”)

4. How long will it take for Davao Light to process the application?

• The electric distribution utility must evaluate and process applications for senior citizen discounts within 15-calendar days from date of application and upon receipt of complete documents.

• Within the same 15-calendar day period, the electric distribution utility must inform the applicant through a letter of its decision on the application.

• For disapproved applications, the electric distribution utility must state the reason/s for disapproval.

5. After my application is approved, when will the discount be given or applied?

For qualified residential senior citizen:

Once the application is approved, the senior citizen discount shall apply in the next billing period after the approval provided:

•  
  •  

    • The monthly residential consumption must not exceed 100 kWh of electricity. Residential senior citizens customers whose consumption shall exceed the 100 kWh limit during any month are not entitled to the senior citizen discount during the month when they exceeded the said limit.

•  
  •  

    • Instead, the non-senior citizen, non-qualified senior citizen and the qualified senior citizen will subsidize the discounts and adjustments extended to qualified senior citizen end-users for that month.

•  
  •  

    • All lifeline customers are excluded from the subsidizing end-users’ base.

•  
  •  

    • The senior citizen discount shall be applied on the basic generation, transmission, system loss, distribution, supply, metering, lifeline discount and charges on the consumer bill of the senior citizen end-users

•  
  •  

    • The bill given to the qualified senior citizen or Senior Citizen Center, Residential Care Facility/Institution and Group Home is already net of the discount. Thus, the qualified senior citizen or Senior Citizen Center, Residential Care Facility/Institution and Group Home need not ask for the discount every time they qualify in a given billing month.

•  
  •  

    • The senior citizen end-user availing of the senior citizen discount must renew annually their application to the electric distribution utility to ensure that they are still eligible for the said benefit and/or are still existent at the time of renewal.

The senior citizen is required to re-apply (subject to the verification of the electric distribution utility) before the 12th billing month from approval of the discount to continue to avail of the senior citizen discount.

For Senior Citizen Center, Residential Care Facility/Institution and Group Home:

• Once application is approved, the senior citizen center discount will only be given on the next billing period after it has established the six (6) months operation requirement.

6. Is the person enjoying lifeline discount can still avail the senior citizen discount?

• YES, the person enjoying the lifeline subsidy discount can still avail of the senior citizens discount.

• The qualified senior citizen will enjoy the senior citizen discount after the lifeline discount is applied on a 30-day month billing period

• Lifeline Subsidy Discount is a socialized pricing mechanism approved by the ERC for marginalized end-users. Qualified senior citizen will enjoy the senior citizen discount after the lifeline discount is applied on a 30-day billing month period.

7. Why are the non-senior citizens, non-qualified senior citizen, qualified senior citizen who exceeded for the month and non-residential customers subsidizes the discounts granted by those who are qualified?

• The rationale for customers subsidizing other customers is to provide relief for marginalized electricity end-users as this is part of the government’s social policy. This is already being done in the case of lifeline rate subsidies.

DEFINITION of TERMS:

A. R.A. 9994 or the Expanded Senior Citizens Act of 2010

• R.A 9994 or the Expanded Senior Citizens Act of 2010 authored by Senator Pia Cayetano is An Act Granting Additional Benefits and Privileges to Senior Citizens Further Amending Republic Act No. 7432, As Amended, Otherwise Known as “An Act to Maximize the Contributions of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other Purposes” was enacted which further expanded the coverage of the benefits and privileges being enjoyed by senior citizen end-users to include the entitlement to discounts on their electricity consumptions.

B. Senior Citizen

• A senior citizen or an elderly refers to any 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 or an elderly may avail of the discount on electric bill payments.

C. Senior Citizen Center, Residential Care Facility/Institution and Group Home

• The Senior Citizens Center and Residential Care Facility/Institution refers to facilities that provides 24-hour residential care services operated primarily for the purpose of promoting the well-being of abandoned, neglected, unattached or homeless senior citizens. These facilities may be run by the government or non-stock, non-profit organization and is accredited by the DSWD to serve a minimum of ten (10) clients.

• A Group Home refers to a community-based alternatives living arrangement to institutional care. It can be a transit home for a definite period for neglected older persons while the necessary services of locating relatives and care management is ongoing.