The Energy Regulatory Commission (ERC) adopted a Resolution for the temporary suspension of Power Delivery Service (PDS) charges for energy storage systems (ESS) to support power system reliability during declared national energy emergencies.
The measure allows qualified ESS facilities to be exempted from the payment of PDS charges on electricity drawn from the grid solely for storage and later reinjection to support grid operations, particularly during periods of supply constraints.
ERC Chairperson and CEO Atty. Francis Saturnino Juan said the intervention is a targeted response to ensure that regulatory policies keep pace with the evolving role of energy storage in maintaining grid stability.
“This is a calibrated and time-bound measure to remove disincentives to the use of energy storage systems when they are most needed.”
“This is a calibrated and time-bound measure to remove disincentives to the use of energy storage systems when they are most needed,” Juan said.
“Our goal is to support grid reliability and energy security while upholding fairness, transparency, and consumer protection,” he added.
The ERC said the policy is designed to address how transmission charges are applied to ESS under emergency conditions, recognizing that energy drawn for storage is not consumed but temporarily absorbed and later returned to the grid.
Under the resolution, the suspension applies only to “Qualified ESS Storage Intake Energy,” for electricity withdrawn for storage activities such as battery charging, pumped-hydro operations, and similar technologies intended for grid support or reinjection.
Electricity used for final consumption remains subject to regular transmission charges, while other applicable fees are not covered by the suspension to preserve cost recovery mechanisms and avoid market distortions.
To ensure proper implementation, all ESS facilities seeking to avail of the measure must register with the National Grid Corporation of the Philippines (NGCP), which is required to process complete applications within five working days.
The ERC also requires separate metering or other verifiable means of measuring qualified storage intake energy to ensure that only eligible volumes benefit from the suspension.
“This reform allows energy storage to be used more effectively in times of need, helping stabilize supply and ultimately protect consumers from volatility.”
“This reform allows energy storage to be used more effectively in times of need, helping stabilize supply and ultimately protect consumers from volatility,” Juan stressed.
NGCP has been directed to submit detailed implementing guidelines within 15 days from the resolution’s effectivity, covering procedures for registration, billing, metering, and verification.
The Commission said it will maintain full oversight to ensure transparency, accountability, and consumer protection while implementing the temporary measure as part of broader efforts to strengthen energy resilience during emergency conditions.
