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ERC: NEW RULES FOR BETTER OFF-GRID SERVICE OUT

The Energy Regulatory Commission (ERC) adopted Resolution No. 19, Series of 2026, or the Rules for Off-Grid Transmission Wheeling and System Operation Charges (Off-Grid Wheeling and SO Charges Rules), establishing for the first time a clear and transparent framework for determining transmission and system operation charges in off-grid areas of the country. 

The new rules set the methodology for computing rates for transmission network services, system operation, and metering services in small grids that are not connected to the main grid.

The rules are intended to support the development and operation of small grids in missionary and off-grid areas, where electricity services are often affected by geographic isolation, limited infrastructure, and high operating costs. 

They also provide regulatory guidance for entities authorized to provide off-grid transmission services, including the National Transmission Corporation (TransCo) in its role as the Small Grid System Operator in identified off-grid configurations.

“The new rules are ultimately about delivering better and more reliable electricity services to communities that have historically faced challenges in energy access.”

ERC Chairperson and CEO Atty. Francis Saturnino Juan emphasized that the new rules are ultimately about delivering better and more reliable electricity services to communities that have historically faced challenges in energy access.

“This resolution is a significant step toward ensuring that Filipinos living in islands and remote communities are not left behind in our energy transition,” Juan explained.

“These reforms are designed to benefit consumers by improving service quality, promoting cost transparency, and supporting the long-term reduction of power costs in off-grid areas.”

“By establishing a transparent and predictable framework for setting the off-grid transmission and system operation charges, we encourage investments in small-grid infrastructure, strengthen accountability, and create the conditions for more reliable and efficient electricity service. Ultimately, these reforms are designed to benefit consumers by improving service quality, promoting cost transparency, and supporting the long-term reduction of power costs in off-grid areas,” the ERC chief added.

The new framework promotes greater service reliability, enhanced transparency and accountability in electricity pricing and billing, and improved operational efficiency of power systems in the off-grid areas. 

These measures are intended to support the sustainable delivery of electricity services, facilitate socioeconomic development, and contribute to improved living standards in underserved and geographically isolated areas.

A copy of ERC Resolution No. 19, Series of 2026 may be accessed here:

https://www.erc.gov.ph/Files/Render/issuance/48798.

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