ERC halts renewable fee collection

The Energy Regulatory Commission (ERC) has announced the temporary suspension of the collection of a renewable energy charge on electricity bills, offering consumers modest relief as regulators move to contain rising power costs.

The suspension covers the Green Energy Auction allowance, a fee collected to support renewable energy developers participating in the government’s Green Energy Auction Program.

According to the ERC, the move is expected to reduce electricity rates by about P0.03 per kilowatt-hour, translating to roughly P6 in monthly savings for households consuming an average of 200 kilowatt-hours.

ERC chairperson Francis Saturnino Juan said the commission issued an advisory last Friday directing utilities to temporarily stop collecting the charge.

“We issued an advisory last Friday to temporarily suspend the collection of the GEA allowance,” Juan said in a radio interview on Sunday.

He explained that the allowance is intended to guarantee payments to renewable energy suppliers based on auction-approved rates under the government’s clean energy program.

Beyond the temporary suspension, the ERC is also reviewing other generation-related charges that could have a bigger impact on electricity bills.

Juan said some of the proposed adjustments under evaluation may exceed P1 per kilowatt-hour, prompting regulators to study possible interventions to prevent simultaneous increases in multiple bill components.

“We are studying possible regulatory intervention so increases in different bill components will not happen all at once,” he said.

The ERC said a decision on additional adjustments could be released within the week.

Despite the relief measures, Juan stressed that some charges embedded in power bills, including lifeline subsidies for low-income consumers, are mandated by law and cannot be removed without congressional approval.

He explained that these charges operate under a pass-through mechanism designed to ensure transparency in electricity pricing.

The commission also said it continues to monitor power utilities and generation companies amid growing public concern over rising electricity rates and possible “bill shock” among consumers.

A Senate investigation into recent power rate increases is likewise expected to proceed, with the ERC set to present its findings before lawmakers.

As part of its short-term consumer relief measures, the commission has also imposed a three-month moratorium on power disconnections for certain customers and introduced staggered payment options for residential consumers using 100 kilowatt-hours or less.

Juan said long-term electricity price stability will ultimately depend on expanding the country’s power supply and encouraging stronger competition in the energy sector.

“If we have excess generating capacity, electricity prices will go down. But that will not happen overnight,” he said.