ERC Standardizes Other Charges To Prevent Duplicate Electricity Billing And Protect Consumers In Philippines

The Energy Regulatory Commission (ERC) has issued Resolution No. 30, Series of 2026, introducing uniform rules for “Other Charges” that distribution utilities (DUs) can collect from electricity consumers. The measure is aimed at improving transparency, preventing duplicate billing, and ensuring that consumers are charged only for legitimate additional services.

Under the new framework, DUs may generally impose Other Charges only for specific activities requested by customers or related to their electricity accounts. These may include certain connection, disconnection, and reconnection services that result in additional costs for the utility. Charges can only be collected if they are included in the ERC-approved Schedule of Other Charges or have been separately approved by the Commission.

The ERC has also introduced safeguards against double charging. Expenses that are already recovered through approved Distribution, Supply, and Metering rates cannot be collected again through Other Charges. The Commission said these charges are intended only to recover incremental costs incurred by DUs in providing specific services and cannot be used to earn additional profit or return on capital.

The Resolution also establishes a standardized method for calculating Other Charges. Allowable costs are limited to direct labor, deployment and fuel expenses, and replacement materials that are directly used to provide the relevant service. Administrative and general overhead expenses cannot be separately passed on to consumers through Other Charges because these costs are already accounted for in the utilities’ approved rates.

The new rules also provide specific requirements for late payment fees. Before imposing such a fee, a DU must properly serve a Notice of Disconnection in accordance with applicable regulations. The late payment fee is capped at two percent of the current month’s bill or the unpaid portion of the bill, whichever is lower.

The fee can be imposed only once for each bill and must be shown as a separate line item in the following billing statement. This requirement is intended to give consumers a clear understanding of additional amounts appearing on their electricity bills.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said the uniform framework would provide consumers with a clearer basis for understanding the charges imposed by DUs. He added that utilities should be allowed to recover legitimate costs for specific services, while consumers should not be required to pay twice for costs already included in approved electricity rates.

DUs have been given 90 calendar days from the effectivity of the Resolution to make necessary changes to their billing systems, IT infrastructure, and accounting records. They must also publish the uniform schedule of charges through their bulletin boards, official websites, and other official social media platforms.

After the transition period, DUs must discontinue any existing Other Charges that are not recognized under the new framework. Resolution No. 30, Series of 2026, will take effect 15 days after its publication in a newspaper of general circulation or in the Official Gazette.