ERC orders two-month stop to green energy fee collection

Consumers will see one less charge on their electricity bills for the next two months after the Energy Regulatory Commission (ERC) suspended the collection of the Green Energy Auction Allowance (GEA-All) for the May and June billing periods.

The regulator said Friday that the collection of the GEA-All rate, equivalent to P0.0371 per kilowatt-hour, will be temporarily halted for all electricity consumers nationwide.

The suspension covers all collection agents, including distribution utilities, retail electricity suppliers, and the National Grid Corp. of the Philippines.

The ERC said the decision followed a review of the GEA-All Fund, which had about P466.49 million remaining as of 5 May.

The Commission said the fund is enough to cover projected payments to eligible renewable energy developers during the suspension period, including new facilities expected to join the program by June.

“While the ERC remains fully committed to supporting the country’s transition to cleaner and more sustainable energy sources, we also recognize the immediate challenges being faced by Filipino households due to rising prices and global uncertainties,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

“This temporary suspension of the GEA-All collection is intended to provide additional relief to consumers while ensuring that renewable energy developers continue to receive the support provided under existing policies,” he added.

The ERC clarified that the temporary suspension will not affect the implementation of the government’s renewable energy programs under the Green Energy Auction Program, where the GEA-All serves as the payment mechanism for eligible renewable energy developers.

The Commission said it will review the status of the GEA-All Fund again by June to determine whether the suspension may be extended further.