The Energy Regulatory Commission (ERC) has approved and adopted ERC Resolution No. 18, Series of 2026, establishing the Implementing Rules for the Development, Ownership, and Operation of Point-to-Point Limited Transmission Facilities and for the Financing and Construction of Transmission Projects by Entities Other than the Transmission Network Provider.
The new rules are designed to accelerate the completion of critical transmission facilities needed to connect new power plants to the national grid and deliver electricity to consumers more quickly and reliably.
Under the new framework, entities other than the Transmission Network Provider, presently the National Grid Corporation of the Philippines (NGCP), will be allowed to finance and construct projects identified by the Department of Energy (DOE) as Associated Transmission Projects (ATPs) or Priority Projects. These projects include new transmission lines, substations, switchyards, and other facilities necessary to accommodate additional power generation capacity and strengthen the country’s transmission network.
Qualified generation companies may finance and construct ATPs. On the other hand, the National Transmission Corporation (TRANSCO) may undertake Priority Projects (PPs) or engage other government agencies, Government-Owned or -Controlled Corporations (GOCCs), or private entities to construct such projects on its behalf pursuant to DOE Circular No. DC 2026-02-0007.
The ERC emphasized that the rules are intended to address delays in transmission infrastructure that often prevent new power plants—including renewable energy projects—from delivering their full capacity to the grid.
“Through these Implementing Rules, we are providing a clear regulatory pathway to enable critical transmission projects to be completed faster while maintaining transparency, accountability, and consumer protection.”
“Reliable and adequate transmission infrastructure is essential to ensuring that electricity generated by new power plants actually reaches Filipino homes and businesses. Through these Implementing Rules, we are providing a clear regulatory pathway to enable critical transmission projects to be completed faster while maintaining transparency, accountability, and consumer protection,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said.
“For consumers, this means helping bring more power supply into the grid, reducing bottlenecks, supporting the integration of renewable energy, and ultimately contributing to a more secure, reliable, and affordable electricity system. At the same time, the ERC will continue to conduct prudency reviews and allow only just and reasonable costs to be recovered and passed on to consumers,” Juan added.
“For consumers, this means helping bring more power supply into the grid, reducing bottlenecks, supporting the integration of renewable energy, and ultimately contributing to a more secure, reliable, and affordable electricity system.”
The new rules also establish terms and conditions governing project approvals, construction timelines, turnover of facilities to the Transmission Network Provider, and the recovery of project costs. The ERC retains its authority to review and determine the fair and reasonable value of transmission projects before any cost recovery mechanism may be implemented.
The adoption of these Implementing Rules supports the government’s broader objectives of strengthening energy security, accelerating the country’s energy transition, and ensuring the timely integration of new generation capacity needed to meet the Philippines’ growing electricity demand.
