New ERC rules promise clearer power bills

Electricity consumers can expect clearer and more transparent power bills after the Energy Regulatory Commission (ERC) approved new rules standardizing how transmission-related charges are computed and reported by distribution utilities.

Under Resolution No. 22, Series of 2026, all distribution utilities will adopt a uniform reporting template and computation guidelines for Transmission and Ancillary Services (AS) charges beginning with the first billing cycle after 16 July.

The new framework also establishes standardized validation and true-up procedures while the ERC finalizes revised rules governing over- and under-recoveries.

The regulator said the measure complements Resolution No. 4, Series of 2026, which requires ancillary services charges to be presented separately in electricity bills to give consumers a clearer breakdown of electricity costs.

ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said over the weekend that the measure aims to ensure consumers pay only for legitimate and properly verified costs.

“Consumers deserve to know what they are paying for. Resolution No. 22 strengthens transparency by ensuring that Transmission and Ancillary Services charges are computed, reported, and verified using uniform standards,” Juan said.

“This is not about adding new charges—it is about making sure that only legitimate, properly documented, and reasonable costs are recovered, ultimately protecting consumers,” he added.

Transmission charges cover the cost of delivering electricity through the national grid, while ancillary services are support services that help keep the power system stable and reliable during fluctuations in electricity demand or unexpected power plant and transmission outages.

According to the ERC, the standardized reporting framework will enable the Commission to more effectively verify these costs and ensure that only prudent and reasonable charges are passed on to consumers.

The regulator added that the new rules will also give distribution utilities a single reporting standard, reducing inconsistencies in regulatory submissions, improving compliance, and streamlining the ERC’s review process.