Experts push for utility, rent payment schemes
The Covid-19 pandemic could cause more problems for landlords and utilities, as Filipinos who lost their job may not be able to pay rent and electricity and water bills, according to local economists.
Citing figures shared by the National economic and development authority (Neda), ateneo Center for economic Research and development (acerd) director alvin P. ang noted that 44 percent of nongovernment workers lost their jobs.
The consequent loss of income, ang said, would make it difficult for these workers to meet their financial obligations. he said this is the impetus behind acerd’s proposal for a “lifeline subsidy.”
“This is expected given the situation. without deferred payments or payment schemes, they won’t be able to meet their obligations,” he said. “we also proposed that these workers be provided with a lifeline subsidy for four months, equivalent to P2,000 per household."
however, ang said the delay in the release of the Labor Force Survey (LFS) survey results will make it difficult to make estimates as to the number of households that will miss payments.
The Philippine Statistics authority (PSA) said the LFS was one of the surveys that were affected by the enhanced community quarantine (ECQ) that has been in place since mid-march.
initially, the PSA was not granted an exemption by the inter-agency Task Force for the Management of emerging infectious diseases (iatf-eid). The PSA will release the results of the survey before the end of June.
“it’ s better to wait forth elfs. everyone is blind now. That’s why its difficult to estimate,” said ang.
University of asia and the Pacific (UA&P) economist Peter Lee U agreed with ang’s statement that many households are expected to miss rent payments and will not be able to pay their utility bills.
he said he is hoping utilities would consider “spreading out their collection as an act of solidarity with many of their fellow Filipinos.”
he told the Businessmirror it was difficult to determine the kind of payment schemes that would benefit households given that there was no “one size fits all formula” that can be used by households and firms.
“in these times, i think, we really have to appeal to all to do what they can and sacrifice where they can for our countrymen. even President duterte appealed to landlords for exemptions,” said U. “i am sure some will abuse and take advantage. But i think many more Filipinos will rise to the occasion.”
however, Former energy Secretary Raphael P.M. Lotilla told this newspaper that he does not expect many consumers to default on payments, especially for essential items, such as utilities and housing. Lotilla also said there are many safety nets, particularly in the case of the Manila electric Co .( mer al co ). he said mer al co offers discount rates for households consuming 100 kilowatt per hour (kwh) and below monthly.
households consuming 20 kwh and below per month, he said, receive a 100 percent discount from Meralco. “For non-lifeline customers, distribution charge and energy tax are graduated. So there are many safety nets.”
Based on the consumer survey conducted by Neda, around 44 percent of the respondents said their income was not enough to meet their basic needs. The survey also showed that a total of 1.127 million workers in the top 10 most affected sectors have already lost their jobs during the ECQ period.
The construction sector posted the highest job losses at 689,974 followed by education with 130,514; repair of motor vehicles and motorcycles, 74,758; tourism ,51,446; and finance and insurance activities, 41,027.
The other sectors that made up the top 10 hardest hit sectors were arts, entertainment, and recreation which lost 39,446 jobs; sports and fitness, 31,547; professional, scientific, and technical activities, 24,579; repair of other items, 23,364; and real estate, 20,964.
The Neda conducted its consumer survey between april 5 to 8 this year. a total of 389,859 Filipinos took part in the survey.