The Energy Regulatory Commission (ERC) reviewed proposed regulatory changes covering electricity cost adjustments, energy storage systems, and retail competition during its 46th Open Commission Meeting held in Davao City on November 12, 2026. The discussions focused on improving electricity billing accuracy, preventing duplicate recovery of energy storage costs, and gradually expanding consumer choice in electricity supply.
The meeting was led by ERC Chairperson and CEO Atty. Francis Saturnino C. Juan, alongside Commissioners Floresinda G. Baldo-Digal, Marko Romeo L. Fuentes, Amante A. Liberato, and Paris G. Real. The Commission examined several proposals aimed at strengthening electricity market regulations while protecting consumers and supporting reliable power services.
One of the key matters discussed was the proposed revision of the rules governing over- and under-recovery (O/U) of electricity costs. The proposed changes seek to provide greater clarity on which costs can be recovered through electricity charges and simplify the adjustment process. They also aim to establish standard timelines for billing and reporting while ensuring consistency with subsequent ERC regulations.
The revisions are expected to improve transparency in electricity cost adjustments and help ensure that consumers are charged accurately. By clarifying the recovery process, the Commission aims to strengthen regulatory oversight and reduce potential issues related to electricity billing.
The ERC also reviewed the proposed Energy Storage Systems (ESS) Rules, which will establish a regulatory framework for energy storage facilities. The proposed rules cover licensing requirements, cost recovery mechanisms, market participation, and safety standards. An important feature of the framework is the introduction of safeguards to prevent the same energy storage costs from being recovered more than once through electricity charges.
The Commission also considered specific conditions for energy storage assets owned by the National Grid Corporation of the Philippines (NGCP). These provisions are intended to ensure appropriate regulatory treatment of storage facilities while supporting their role in maintaining grid reliability and improving electricity system operations.
Another major topic was the proposed roadmap for Retail Competition and Open Access (RCOA). The roadmap outlines a five-year transition towards full retail competition, allowing more electricity consumers to choose their preferred power suppliers.
Under the proposal, eligibility thresholds would be reduced gradually, enabling additional categories of consumers to participate in the competitive electricity market. However, each stage of expansion would depend on market readiness assessments and separate approvals from the Commission.
The proposed changes are part of the ERC’s broader efforts to improve electricity market efficiency, strengthen consumer protection, and support the development of a more competitive power sector. The reviews also highlight the growing importance of energy storage and transparent cost-recovery mechanisms in ensuring a reliable and affordable electricity supply.
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