Philippines ERC Revises Interruptible Load Program To Strengthen Grid Stability During Power Emergencies

The Energy Regulatory Commission (ERC) of the Philippines has amended the rules governing the Interruptible Load Program (ILP) to strengthen the country’s ability to manage power shortages and improve grid stability during emergencies. The updated rules were approved under a 2026 resolution following widespread grid problems and rotational blackouts that affected several parts of the country.

The decision comes after a major power crisis in May 2026, when both the Luzon and Visayas power grids experienced repeated Red and Yellow Alerts. On May 13 and 14, significant power generation shortages forced authorities to implement manual load dropping and rotational blackouts. The situation in the Visayas was made worse by outages at several coal-fired power plants and an earthquake that disrupted electricity imports from Mindanao. These events highlighted the need for stronger measures to maintain a reliable electricity supply during periods of high demand or limited generation.

The Interruptible Load Program allows large electricity consumers with their own standby power generation systems to temporarily disconnect from the main grid and use their own generators during supply shortages. This reduces demand on the national grid and helps prevent wider power outages.

Under the amended rules, the ERC has introduced a clearer and more structured compensation system for participants. The new compensation package includes three main components: standby cost, payment for actual de-loaded energy, and maintenance cost, with any applicable penalties deducted when necessary.

One of the key changes is the introduction of a fixed Standby Fee of PhP 0.85 per kilowatt-hour. This payment is available to participants who commit their standby capacity during the final confirmation period, which is a maximum of two hours before the expected activation of the program. Even if the grid situation improves and participants are ultimately not required to reduce their electricity consumption, they will still receive the standby payment for remaining ready to assist.

However, if no final confirmation is issued and no de-loading takes place, participants will not receive any compensation. For actual de-loading, payments will be calculated using average diesel fuel prices from Petron, Shell, and Caltex recorded at the end of the previous month. The calculation will also use a standard fuel consumption rate of 0.34 litre per kilowatt-hour to ensure consistency and transparency.

The revised rules also strengthen accountability by introducing stricter penalties for non-compliance. If a participant fails to deliver the amount of electricity reduction they committed, the penalty will be equal to the compensation they would have received had they fully complied. In cases of partial compliance, the penalty will reflect the difference between the promised and actual electricity reduction.

The ERC clarified that penalties will only be waived for valid reasons beyond the participant’s control, including force majeure events or unexpected operational failures of generating units.

The resolution was signed by ERC Chairperson and CEO Francis Saturnino C. Juan along with the Commission’s members. It will take effect immediately after publication in a newspaper of general circulation or in the Official Gazette, allowing the updated rules to be implemented quickly to support a more stable and reliable power grid across the Philippines.