ERC Suspends Grid Charges For Energy Storage Systems During National Energy Emergencies In The Philippines

The Energy Regulatory Commission (ERC) has approved a temporary measure to support the use of energy storage systems (ESS) during national energy emergencies by suspending selected grid-related charges. The decision is intended to improve power system reliability and strengthen energy security when electricity supply is under pressure.

Under the newly adopted resolution, qualified energy storage facilities will not be required to pay Power Delivery Service (PDS) charges on electricity taken from the grid solely for storage purposes and later returned to the power system. The exemption applies only during officially declared national energy emergencies and is designed to encourage greater use of energy storage technologies in supporting grid operations.

The ERC explained that energy storage systems play an increasingly important role in balancing electricity supply and demand, particularly during periods of supply shortages or unexpected disruptions. By temporarily removing PDS charges on electricity used for storage, the Commission aims to eliminate financial barriers that could discourage operators from providing critical grid support.

ERC Chairperson and Chief Executive Officer Atty. Francis Saturnino C. Juan described the measure as a carefully designed and time-bound policy that reflects the growing importance of energy storage in maintaining grid stability. He said the initiative seeks to ensure that existing regulations evolve alongside new technologies while maintaining fairness, transparency, and protection for electricity consumers.

The Commission clarified that the suspension applies only to what it calls “Qualified ESS Storage Intake Energy.” This refers to electricity drawn from the grid exclusively for storage before being reinjected into the system to support grid operations. The policy covers technologies such as battery energy storage systems, pumped-hydro storage facilities, and other similar energy storage solutions used for grid reliability.

At the same time, the ERC emphasized that electricity used for final consumption will continue to be subject to normal transmission charges. The temporary suspension also does not include other applicable fees, allowing existing cost recovery mechanisms to remain in place and preventing possible market distortions.

To qualify for the benefit, energy storage facilities must register with the National Grid Corporation of the Philippines (NGCP). The grid operator has been instructed to process complete registration applications within five working days. In addition, facilities must have separate metering systems or other reliable methods to accurately measure the amount of electricity used exclusively for storage activities, ensuring that only eligible energy volumes receive the exemption.

The ERC has also directed NGCP to prepare and submit detailed implementing guidelines within 15 days after the resolution takes effect. These guidelines will outline procedures for registration, billing, metering, and verification.

The Commission said it will closely monitor the implementation of the measure to ensure transparency, accountability, and consumer protection. According to Chairperson Juan, enabling energy storage systems to operate more efficiently during emergency situations will help stabilize electricity supply, improve grid resilience, and reduce the impact of power shortages on consumers.