ERC breaks records with surge in decisions, licenses

The Energy Regulatory Commission (ERC) set new records, issuing 186 decisions and final orders, 348 provisional authorities and interim reliefs, and 2,575 licenses—including Certificates of Compliance and Retail Electricity Supplier permits—between 11 August and mid-November.

The approvals covered a wide range of regulatory actions, including rate cases, power service agreements, and ancillary services purchase agreement applications, capital expenditure requests, market fees for the Wholesale Electricity Spot Market, point-to-point applications, and licenses in off-grid areas.

“Our mission is straightforward: to regulate the power industry in a way that is effective, efficient, and prioritizes the welfare of consumers,” ERC chairperson and CEO Saturnino Juan said Wednesday.

Juan, who already completed his first 100 days in office, said the Commission has restarted the rate reset process for private distribution utilities under the Rationalized Rules for Setting Distribution Wheeling Rates, addressing a backlog under the performance-based regulation framework. 

“We start on a clean slate so that future rate-setting under the performance-based rates becomes forward-looking once more, where the distribution rates will be set using forecasts of efficient costs and sound regulatory principles,” he added.

The ERC also approved a new Feed-in Tariff Allowance rate to ensure timely payments to renewable energy developers and simplified net metering procedures to four core requirements, making the program more accessible to households and businesses. 

“This decision strikes a careful balance—supporting the growth of renewable energy the country needs, while keeping electricity rates affordable for Filipino households and businesses,” Juan said.

Other regulatory measures included drafting rules for Ancillary Services Procurement Agreements to maintain grid stability, proposing an expansion of the Lifeline Rate Program to provide free electricity to low-consumption households, and updating Advanced Metering Infrastructure rules to improve real-time monitoring, automated billing, and outage detection.

The ERC also amended Public Offering Requirement rules for energy firms and lowered the participation threshold for the Retail Competition and Open Access and Retail Aggregation programs from 500 kilowatts (kW) to 100 kW, enabling more medium-sized enterprises to choose their electricity suppliers.

In a high-profile intervention, the Commission resolved prolonged blackouts in Siquijor by canceling the permit of the island’s sole power supplier and coordinating a replacement with the Department of Energy and the National Electrification Administration.

On the organizational side, the ERC submitted a position paper on restructuring bills to Congress and is finalizing a reorganization proposal for the Executive Branch, including adjustments to staff compensation.