AMID forecasts of warmer temperature during the forthcoming dry season, the Land Bank of the Philippines (LANDBANK) is launching a new initiative that aims to cushion consumers from paying higher electricity bills due to the expected increase in power consumption.
Under the ANTI BILL SHOCK Lending Program, LANDBANK will provide financing to electric distribution companies at concessional rates with no additional spread on their working capital.
This 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.
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 ANTI BILL SHOCK Lending Program 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.
“LANDBANK aims to provide consumers more breathing room to pay their energy bills by helping prevent a price surge on their monthly expenditures. We are also committed to boosting the capacity of energy players to provide sufficient, accessible and reasonably-priced supply of electricity nationwide,” said LANDBANK president and CEO Cecilia Cayosa Borromeo.
President Borromeo led the launching of the ANTI BILL SHOCK Lending Program on April 14, 2023 at the LANDBANK Plaza, together with Energy Regulatory Commission (ERC) chairperson, Atty. Monalisa C. Dimalanta, and National Electrification Administration (NEA) deputy administrator Leila B. Bonifacio.
“This is one of the best examples of the beauty of a whole-of-government approach — it’s not just DOE, it’s not just ERC, but also our counterparts in the financing sector. This is really, together, finding solutions for our consumers so that we can provide the much needed relief,” said Dimalanta.
For her part, Bonifacio commended LANDBANK’s continued commitment as a dependable partner of electric cooperatives, in pursuit of the objectives of the rural electrification program.
“The launching of your ANTI BILL SHOCK Lending Program is, indeed, a demonstration of your organization’s dynamic initiative to explore all possible opportunities to aid the energy sector, where the electric cooperatives belong,” she said.
The event was also attended by member-representatives from the Philippine Rural Electric Cooperatives Association Incorporated and the Philippine Electric Plant Owners Association, together with LANDBANK senior vice president Ma. Celeste A. Burgos and vice president Esperanza N. Martinez.
The state-run bank has initially allocated P1.5 billion for the lending program. 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.
Interested borrowers may contact the nearest LANDBANK Lending Center or branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000./PN
