The Market Monitor Minding the Nation's Business
The Energy Regulatory Commission (ERC) has exempted qualified Energy Storage System (ESS) facilities from paying Power Delivery Service (PDS) charges during declared national energy emergencies. The move aims to encourage greater use of energy storage to help stabilize the country’s power supply.
In a statement released last week, the ERC said it issued a resolution covering electricity drawn by qualified ESS facilities for storage activities. These include battery charging, pumped-hydro operations and similar technologies designed to support the power grid.
The ERC clarified that the exemption applies only to electricity used for energy storage and not for final consumption. Regular transmission charges and other applicable fees will still apply to electricity consumed to ensure proper cost recovery and avoid market distortions.
ERC Chairperson and Chief Executive Officer Francis Saturnino Juan described the policy as a targeted and time-bound measure. He said it removes financial disincentives that could discourage the use of energy storage systems during periods of power supply emergencies.
“Our goal is to support grid reliability and energy security while upholding fairness, transparency, and consumer protection,” Juan said.
The commission explained that energy drawn for storage is temporarily absorbed and later returned to the grid. Because it is not immediately consumed, the ERC said it should be treated differently from electricity intended for end users during emergency situations.
To qualify for the exemption, ESS operators must register with the National Grid Corporation of the Philippines (NGCP). The grid operator has been directed to process complete applications within five working days.
Juan said the reform will allow energy storage facilities to respond more effectively during supply disruptions. He added that wider deployment of ESS technologies would help improve grid stability and protect consumers from electricity price volatility.