ERC eyes reset of power rates after decade-long lapse

Energy Regulatory Commission (ERC) Chair Francis Saturnino Juan on Friday stressed the need to reset key components of electricity bills, saying rates for transmission, distribution, and generation charges have not been reviewed in more than 10 years.

Speaking on Bagong Pilipinas Ngayon, Juan explained that generation charges take up the largest portion of consumer bills. 

These were opened to competition to ensure consumers pay the lowest possible rates, but he noted that regulators must also guarantee enough supply by making it easier for investors to build new power plants.

Transmission and distribution charges, meanwhile, remain regulated — but Juan admitted their rates are long overdue for review. “I don’t know if the rates they are collecting are more than or less than what it should be,” he said.

The ERC is now revising its rules on rate-setting to establish a clearer and streamlined process. Juan said hearings must be completed before distribution utilities and electric cooperatives enter a new regulatory period.

He expressed hope that new rates will take effect later this year or by early 2026, emphasizing ERC’s mandate to ensure adequate power supply, reliable transmission, and fair pricing for consumers.