Power transmission and system charges in off-grid areas will now be computed under a single regulatory framework, providing small-grid operators with a uniform pricing methodology and greater cost transparency for consumers in remote communities.

The Energy Regulatory Commission (ERC) has adopted Resolution No. 19, Series of 2026, or the Rules for Off-Grid Transmission Wheeling and System Operation Charges, establishing for the first time a standardized method for determining transmission, system operation, and metering charges in small grids that are not connected to the main power grid.

Support missionary and off-grid areas

The ERC said Friday the rules are meant to support the development of missionary and off-grid areas, where electricity service is often constrained by geographic isolation, limited infrastructure, and high operating costs.

They also provide regulatory guidance for authorized off-grid transmission providers, including the National Transmission Corporation (TransCo) in its role as Small Grid System Operator.

ERC chairperson and chief executive officer Francis Saturnino C. Juan said the framework is designed to improve electricity access while attracting more investment in underserved communities.

Significant step

“This resolution is a significant step toward ensuring that Filipinos living in islands and remote communities are not left behind in our energy transition.

By establishing a transparent and predictable framework for setting the off-grid transmission and system operation charges, we encourage investments in small-grid infrastructure, strengthen accountability, and create the conditions for more reliable and efficient electricity service,” he said.

Added Juan, “Ultimately, these reforms are designed to benefit consumers by improving service quality, promoting cost transparency, and supporting the long-term reduction of power costs in off-grid areas.”

The ERC said the framework is expected to improve service reliability, strengthen transparency and accountability in electricity pricing and billing, and enhance the operational efficiency of off-grid power systems.

The commission added that the rules will support the sustainable delivery of electricity services while helping drive socioeconomic development and improve living standards in geographically isolated and underserved communities.