ERC Reports Major Gains In Approvals, Consumer Refunds And Energy Sector Reforms In The Philippines

The Energy Regulatory Commission (ERC) of the Philippines has reported significant progress in regulatory approvals, consumer protection, market access, and energy transition initiatives during the first year of Chairperson and CEO Atty. Francis Saturnino C. Juan.

From August 2025 to July 2026, the ERC approved 250 Power Supply Agreement (PSA) cases and 144 capital expenditure (CAPEX) projects. This represents a major increase compared with only six PSA and six CAPEX approvals during the comparable 12-month period before the current Commission.

During the same period, the ERC issued 2,350 decisions and orders, 6,936 licenses and authorizations, and 38 rule-making resolutions. It also established 25 new operational information systems to improve the speed and efficiency of regulatory processes.

Consumer protection remained a major priority. The Commission facilitated PhP 71.3 billion in electricity refunds, resolved 171 consumer cases, addressed 4,640 informal complaints, and issued 347 show-cause orders where regulatory action was required.

The ERC also expanded consumer choice by reducing the threshold for Retail Competition and Open Access (RCOA) from 500 kilowatts to 100 kilowatts. The change allows more businesses to negotiate electricity supply arrangements directly with retail electricity suppliers. Smaller consumers can participate through the Retail Aggregation Program, while qualified consumers can access renewable electricity through the Green Energy Option Program.

For low-income households, the ERC approved the Uniform National Lifeline and Rate Subsidy Program. The program provides a nationwide lifeline subsidy of PhP 0.01 per kilowatt-hour and a 100-percent discount for qualified consumers using 50 kWh or less per month.

The Commission also continued modernizing the electricity sector. It updated its Advanced Metering Infrastructure Rules for the first time since 2016 to support Smart Grid programs and continued digitalization through ERCify and integration with the Energy Virtual One-Stop Shop.

Clean energy adoption also recorded strong growth. Net-metering registrations increased by 248.75 percent between August 2025 and June 2026, reaching 23,331 qualified end-users and more than 232,000 kWp of distributed clean energy connected to the grid.

The ERC established Green Energy Auction Reserve prices, including PhP 11 per kWh for offshore wind projects under the fifth Green Energy Auction and PhP 9.2959 per kWh for pioneer biomass waste-to-energy projects. It is also developing a framework for distributed energy resources in off-grid areas to help reduce dependence on costly diesel generation.

On electricity rates, the ERC approved the National Grid Corporation of the Philippines’ annual revenue requirement for 2023–2027 at PhP 374.98 billion, 15.28 percent below the PhP 442.60 billion originally requested.

The Philippines also assumed the 2026 chairmanship of the ASEAN Energy Regulators Network, with the ERC leading regional cooperation in support of the ASEAN Power Grid.

Looking ahead, the ERC said it will focus on reducing regulatory backlogs, encouraging investment in generation, transmission and distribution infrastructure, and strengthening coordination with industry stakeholders. The Commission also expressed support for the government’s efforts to reduce the burden of system losses on consumers.

Chairperson Juan said the ERC’s next phase will build on the progress achieved during its first year, with the goal of creating a more reliable, affordable and fair electricity sector for Filipino consumers.