Categories
Featured Government

ERC STANDARDIZES TRANSMISSION, ANCILLARY CHARGES

The Energy Regulatory Commission (ERC) has approved Resolution No. 22, Series of 2026, adopting a Uniform Reportorial Requirements (URR) Template Addendum that standardizes how Distribution Utilities (DUs) compute, monitor, and report Transmission and Ancillary Services (AS) charges. 

The measure strengthens transparency, accountability, and regulatory oversight of these pass-through costs while making electricity billing easier to verify and understand.

Beginning with the first billing cycle after July 16, 2026, DUs will use a uniform reporting template and computation guidelines for Transmission and Ancillary Services charges. 

The new framework also establishes standardized validation and true-up procedures while the ERC finalizes the revised Over/Under Recovery Rules.

The Resolution complements Resolution No. 4, Series of 2026, which requires the separate presentation of Ancillary Services charges in electricity bills to improve transparency. The ERC emphasized that this does not impose any new or additional charges on consumers. Instead, it provides a clearer and more consistent way of computing, reporting, and monitoring existing transmission-related pass-through costs.

ERC Chairperson and CEO Atty. Francis Saturnino Juan said the measure gives consumers greater confidence that the charges reflected in their electricity bills are properly verified.

“Resolution No. 22 strengthens transparency by ensuring that Transmission and Ancillary Services charges are computed, reported, and verified using uniform standards.”

“Consumers deserve to know what they are paying for. Resolution No. 22 strengthens transparency by ensuring that Transmission and Ancillary Services charges are computed, reported, and verified using uniform standards,” Juan stressed.

“This is not about adding new charges—it is about making sure that only legitimate, properly documented, and reasonable costs are recovered, ultimately protecting consumers,” he added.

“It is about making sure that only legitimate, properly documented, and reasonable costs are recovered, ultimately protecting consumers.”

Ancillary Services are support services that help keep the country’s power grid stable and reliable, especially during sudden changes in electricity demand or unexpected power plant or transmission outages. The new reporting framework enables the ERC to more effectively verify these costs and ensure that only prudent and reasonable charges are passed on to consumers.

The Resolution also benefits the entire energy sector by providing Distribution Utilities with a single reporting standard, improving regulatory compliance, reducing inconsistencies in submissions, and streamlining the ERC’s review process. It also promotes greater transparency and accountability across the industry while giving consumers a clearer picture of the charges reflected in their electricity bills.

Through Resolution No. 22, Series of 2026, the ERC continues to strengthen consumer protection and uphold fair, transparent, and accountable electricity pricing in line with the Electric Power Industry Reform Act (EPIRA).

Home

SHARE THIS ARTICLE

Leave a Reply

Your email address will not be published. Required fields are marked *