Consumer-first: ERC powers up a 2026 overhaul

After a year of volatile power prices, shifting policies, and growing public scrutiny, the Energy Regulatory Commission (ERC) is heading into 2026 under pressure to prove that reform is no longer optional.

Facing rising electricity costs and mounting consumer frustration, the regulator said it is rolling out a new agenda aimed at restoring confidence — both among households burdened by power bills and investors wary of regulatory delays in one of the country’s most critical industries.

Priorities in 2026

The ERC said its 2026 priorities will focus on tougher consumer protection, faster and more transparent decision-making, and long-overdue updates to the regulatory framework governing a power sector valued at about P4.13 trillion.

The reform push is also meant to clear chronic backlogs that have stalled rate-setting, slowed investment approvals, and repeatedly triggered disputes over electricity prices — issues that have underscored the cost of regulatory inaction.

ERC chairperson and chief executive officer Atty. Francis Saturnino C. Juan said the agency is repositioning itself as a more open, accountable, and people-centered regulator.

The new ERC

“The New ERC stands for greater transparency, stronger public engagement, and a deeper commitment to consumer welfare,” Juan said.

As the Commission looks to 2026, Juan said his vision is to build a future-ready ERC — one capable of responding to new technologies, evolving market structures, and heightened public scrutiny, while delivering timely decisions.

“Our five major directions for the New ERC include fair and evidence-based rate setting; timely resolution of pending cases; robust market oversight; creation of a stable and enhanced regulatory environment; and proactive, consumer-focused leadership,” he said.

Persistent criticism

These priorities come amid persistent criticism over delayed rulings and unresolved regulatory resets for distribution utilities — issues that directly affect electricity rates paid by households and businesses.

To address these concerns, the ERC said it will enforce least-cost obligations, finally complete long-delayed regulatory resets, and accelerate the resolution of pending cases through streamlined hearings and internal processes.

Compliance with the Energy Virtual One-Stop-Shop and the Ease of Doing Business laws is also expected to cut approval timelines and reduce regulatory friction.

Preparing for the next energy wave

With regulatory delays increasingly seen as a barrier to new energy investments, the Commission is shifting focus to the rules that will govern the next phase of the power sector’s evolution. This includes setting long-awaited price frameworks for emerging technologies such as offshore wind and liquefied natural gas, alongside updates to market rules and technical standards to accommodate new entrants and innovation.

Approvals for utilities, Power Supply Agreements, and renewable energy projects will be fast-tracked, as the ERC seeks to replace regulatory uncertainty with clearer, bankable signals that can unlock capital in a sector critical to economic growth, grid reliability, and the country’s decarbonization targets.

The ERC regulates the entire electricity value chain — generation, transmission, distribution, supply, and market operations — powering hospitals, schools, factories, households, and the country’s expanding digital economy, underscoring the scale of its influence and the cost of regulatory delay.

Sharpening consumer protection

Even as it pushes market reforms, the ERC stressed that consumer welfare will not be sidelined — positioning protection of electricity users as a non-negotiable pillar of its 2026 agenda.

“Transparency, consumer protection, and fairness are the pillars of our work,” Juan said.

For 2026, the Commission plans to widen subsidies for lifeline consumers and senior citizens, reinforce consumer rights under the Magna Carta for Consumers of Electricity, and tighten rules on metering and net metering — areas that directly affect household power bills.

The planned amendments introduce new safeguards for billing, disconnection, and smart metering, covering all consumer classes, while ongoing consultations target to ensure fair, transparent, and enforceable electricity services nationwide.

The ERC will also work with the Bureau of Internal Revenue to ensure the consistent and fair application of value-added tax and subsidies.

Double down on transparency

Looking ahead to 2026, the Commission said it will double down on transparency, clear communication, and regulatory discipline, to deliver reforms that move beyond paper and into tangible relief for electricity users.

“Accurate information is a responsibility we share — and together, we can build a future that is fair, transparent, and truly felt by every Filipino,” Juan said.

For the power watchdog, access to accurate and timely information is critical for a functioning power market, enabling consumers and businesses to scrutinize both utilities and regulators — and to demand accountability where it falls short.