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ERC BACKS REFORMS FOR AFFORDABLE ELECTRICITY

The Energy Regulatory Commission (ERC) pushed key regulatory reforms aimed at enhancing electricity affordability and access for Filipinos during the Philippine Electric Power Industry Forum (PEPIF 2026) at the John Hay Convention Center, Baguio City.

Speaking at the forum with the theme “Navigating the Energy Trilemma in the Philippine Context: Security, Sustainability, and Equity,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said affordability and access are achieved through transparent markets, clear rules, and strong institutional oversight.

“Energy for All is not simply a policy goal—it is the product of sound and consistent regulation.”

“Energy for All is not simply a policy goal—it is the product of sound and consistent regulation,” Juan said.

With the Filipino consumer as its core mandate, the Commission has taken significant steps to ensure consumer protection, affordability, and market efficiency.

Some of ERC’s initiatives include strengthening consumer rights by amending the Magna Carta for Electricity Consumers and simplifying the process for households to access electricity; expanding the Lifeline Rate subsidy for low-income households, including automatic eligibility for 4Ps beneficiaries consuming up to 50 kilowatt-hours per month, and establishing a uniform national subsidy rate; and improving market efficiency by streamlining Power Supply Agreement approvals and amending CSP rules to expedite reviews and processes.

“The reforms aim to shift the perception of the ERC from being a bottleneck to a regulator that provides a stable, predictable environment conducive to investment.”

Juan said the reforms aim to shift the perception of the ERC from being a bottleneck to a regulator that provides a stable, predictable environment conducive to investment.

ERC also addressed market issues, including enhancing oversight of the Wholesale Electricity Spot Market (WESM) line rental and exploring mechanisms to mitigate related issues.

The Commission adjusted the Secondary Price Cap from P6,245 to P7,423 per megawatt-hour under Resolution No. 26, Series of 2025, while monitoring rolling averages to protect consumers from price spikes.

Meanwhile, to further promote competition, ERC lowered the eligibility threshold for the Retail Competition and Open Access (RCOA) and the Retail Aggregation Program (RAP) to 100 kilowatts of average monthly peak demand, broadening participation in the competitive electricity market.

The Commission underscored that thoughtful reforms and diligent regulation ensure electricity that is sustainable, accessible, and affordable.

“Let us unite in our efforts to forge the energy future that all Filipinos rightfully deserve,” he concluded.

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