The Energy Regulatory Commission (ERC) ordered the suspension of the flawed collection of excessive Line Loss and Congestion Cost (LLCC) charges, bringing relief to electric consumers especially in the Visayas.

House Minority Leader and 4Ps Partylist Rep. Marcelino Libanan said the ERC on 13 August decision ordered corrective measures in the charging of LLCC after finding that the WESM had been incorrectly calculating the congestion component of electricity prices.

“We expect to see lower power rates in the Visayas, and refunds to consumers who saw their electricity bills surge by anywhere from P2 to P5.99 per kilowatt-hour because of the erroneous pass-on of excessive LLCC charges,” Libanan said.

Line Loss is the natural waste of electricity as power travels through wires and equipment over a distance, while Congestion Cost is the extra price added when transmission lines are too full to carry cheap power, forcing the grid to use more expensive local generators.

Together, the LLCC, more familiarly referred to as line rental charges, forms one of the biggest chunks of charges being passed on by distribution utilities to electric consumers.

The Federation of Rural Electric Cooperatives in Region 8 (FRECOR 8), the organization of 11 electric cooperatives in Eastern Visayas, said that from January to July 2026, the distribution utilities in the region were billed a total of P1.55 billion for LLCC.

During the 11 August hearing of the House Committee on Energy, Libanan lashed out at the exorbitant LLCC charges, citing a complaint of the Eastern Samar Electric Cooperative Inc.

“The oppressive LLCC charges constitute an added burden on electricity consumers, many of whom are already struggling with rising living costs and finding it increasingly difficult to provide for the basic needs of their families,” Libanan said.

“Consumers should not be made to shoulder the cost of the electricity market’s defective pricing and settlement system. If consumers were overcharged, they deserve to get their money back,” he added.