State-run Land Bank of the Philippines initially allocated P1.5 billion for a lending program to cushion consumers from paying higher electricity bills because of the expected increase in power consumption amid the warmer temperature.
LandBank president and chief executive Cecilia Borromeo said the ANTI BILL SHOCK Lending Program would provide financing to electric distribution companies at concessional rates with no additional spread on their working capital.
The arrangement will enable the distribution companies to spread out the incremental increases in their customer’s billings by up to nine months without passing the borrowing cost to consumers who cannot afford to pay at full cost.
Power distributors may loan up to 80 percent of the incremental increase on the working capital requirement during the summer months but not to exceed the repayment capacity of the distribution utilities or three times the average billings of its power suppliers.
Under the short term loan facility, borrowers will also be required to implement an anti-electric bill shock program to protect their respective clients from the expected increase in electricity bills.
The acronym ANTI BILL SHOCK stands for Assistance to Narrow and Trim down the Incremental power cost increase via Bridge financing Initiative of LandBank to Lower and Spread out HOt summer-triggered monthly Consumption on Konsumers’ Electricity.
