As the Energy Regulatory Commission (ERC) marks its 25th year in June 2026, the Commission posted year-level gains in just ten months from August 2025, sustaining reforms, accelerating regulatory actions, and expanding consumer relief measures amid global fuel price volatility.
Since assuming office on August 11, 2025, Chairperson and CEO Atty. Francis Saturnino Juan led the Commission in surpassing previous performance benchmarks under its “New ERC” agenda anchored on transparency, efficiency, and consumer welfare—driven by the collective efforts of its officials and personnel.
“Our mission is straightforward: to regulate the power industry in a way that is effective, efficient, and prioritizes the welfare of consumers. These gains reflect the shared commitment and hard work of the entire Commission,” Juan said.
Laying the Groundwork for Reform
In his first 100 days, the ERC initiated key structural reforms, including addressing the decade-long delay in the rate reset process for private distribution utilities. Through the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR), the Commission reinstated a forward-looking and predictable rate-setting framework anchored on efficient costs.
Approval of a new Feed-in Tariff Allowance (FIT-All) rate in November 2025 ensured timely payments to renewable energy developers while balancing affordability for consumers. Net-metering procedures were streamlined to four core requirements, improving access to clean energy for households and businesses.
In a critical regulatory intervention, the Commission addressed long-standing power outages in Siquijor by cancelling the Permit to Operate of the island’s sole power supplier due to persistent operational deficiencies and repeated service interruptions, in line with its mandate to ensure reliable and adequate electricity service.
By the end of 2025, the ERC recorded gains in regulatory performance, policy development, and enforcement. Key measures included updated rules on Advanced Metering Infrastructure, revised Public Offering Requirement guidelines, and expanded access to the Retail Competition and Open Access (RCOA) program.
The Commission also intensified enforcement efforts, resolving long-pending cases and issuing decisions, orders, and licenses at record levels.
Reforms and Crisis Response in 2026
Moving into 2026, the ERC chief emphasized the importance of sustaining reforms through a whole-of-Commission approach.
“Our priorities require not only strong policy direction but coordinated action across the institution to deliver timely, fair, and consumer-focused regulation.”
“Our priorities require not only strong policy direction but coordinated action across the institution to deliver timely, fair, and consumer-focused regulation,” he said.
Among its major policy actions, the Commission approved a Uniform National Lifeline Subsidy Rate to expand support for low-income households, including a 100 percent discount for marginalized consumers within the 0–50 kWh consumption threshold. It also adopted amendments to the Magna Carta for Residential Electricity Consumers to strengthen consumer rights and introduce more transparent and flexible bill deposit rules.
To promote fairness and transparency in rates, the ERC approved the revenue cap for the National Grid Corporation of the Philippines (NGCP) for the 2023–2027 regulatory period, ensuring cost-efficient grid investments while protecting consumers from excessive charges. The Commission also issued revised rules on the recovery of local taxes, requiring clear billing line items and strict validation mechanisms. To further strengthen transparency and stakeholder engagement, the ERC continuously conducted Open Commission Meetings (OCMs) to keep stakeholders informed of the Commission’s actions and key regulatory developments.
In support of energy transition and long-term supply development, the ERC set the country’s first offshore wind (OSW) ceiling price under the Green Energy Auction Program (GEAP) and adopted rules governing microgrid systems to accelerate electrification in unserved and underserved areas. Building on these sustainable energy initiatives, the ERC also officially approved and adopted a Final Green Energy Auction Reserve (GEAR) Price of P9.2959/kWh for Pioneer Biomass Waste-to-Energy (WTE) projects.
Energy Crisis Response and Market Stability
Amid global fuel price volatility and the declaration of a national energy emergency, the ERC sustained its reform momentum, intensifying regulatory actions and managing both immediate crisis efforts and long-term sectoral priorities.
The Commission implemented decisive interventions to stabilize electricity prices and ensure supply security. These included the temporary suspension and subsequent resumption of the Wholesale Electricity Spot Market (WESM), adoption of a modified administered pricing mechanism, and issuance of clarificatory guidelines to support market stability.
Additionally, the ERC also strengthened regulatory oversight by directing distribution utilities to submit reports on significant power cost increases, while initiating enforcement actions against non-compliant entities to uphold consumer protection standards.
Consumer relief remained a central priority. The Commission ordered the acceleration of major refunds, including billions in distribution-related adjustments, suspended the collection of select charges such as the Green Energy Auction Allowance (GEA-All) for May and June 2026 billing periods, and supported measures to mitigate the impact of rising generation costs on consumers.
Further, the ERC mandated consumer protection measures across the power sector, including the suspension of disconnections, flexible payment arrangements, and staggered billing schemes.
“These reforms reflect our shared commitment as a Commission to ensure that regulation is not only efficient, but also fair, transparent, and responsive to the realities faced by our consumers,” Juan stressed.
Measurable Gains in Ten Months
Among the highlights, the ERC strengthened its push for renewable energy by simplifying net-metering procedures, resulting in a 243.56 percent surge in registrations, with 23,331 qualified end-users and 228,766.63 kilowatts peak (kWp) capacity connected to the grid. This builds on earlier reforms that reduced requirements and standardized processes, making clean energy access more accessible to households and businesses.
The Commission also delivered significant financial relief to consumers, facilitating P21.3 billion in refunds covering over- and under-recoveries, regulatory reset adjustments, and the Meralco Actual Weighted Average Tariff (AWAT) refund. At the same time, enforcement actions were intensified, with 244 show-cause orders (SCOs) issued, 38 consumer cases resolved, and a total of 3,875 complaints addressed through letters and email.
Regulatory output likewise reached record levels. From August 2025 to May 2026, the Commission released a total of 2,142 decisions and orders covering rate cases, power supply agreements, capital expenditure approvals, consumer complaints, and enforcement actions—demonstrating a scale of output that already exceeds typical full-year performance in less than ten months.
On the policy front, the ERC issued 34 rule-making resolutions aimed at reforming rate-setting frameworks, strengthening consumer protection, addressing energy market volatility, and establishing pricing safeguards. Notably, 20 of these were issued in 2026 alone, underscoring the pace of regulatory reform.
The Commission also accelerated its core licensing function. In ten months, it issued more than 6,000 licenses and authorizations, including 5,551 Qualified Entity Certificates of Compliance (COCs), 405 Self-Generating Facility (SGF) COCs, 307 Provisional Authority to Operate (PAOs), 128 Independent Power Producer (IPP) COCs, and 52 Distributed Energy Resources (DER) COCs—supporting expanded participation in power generation across the country.
Parallel to these efforts, the Commission advanced digital transformation and internal reforms, developing 23 operational information systems with 11 more underway, bringing the total pipeline to 34 digital platforms aimed at improving efficiency, transparency, and public service delivery.
“These results underscore what can be achieved through a unified and responsive institution,” Juan pointed out.
Toward a More Resilient Power Sector
As the Commission moves forward, Juan emphasized the importance of sustained institutional reform and collaboration.
“We will continue to build on these gains by strengthening our regulatory systems, deepening stakeholder engagement, and ensuring that every policy decision ultimately serves the public interest.”
“We will continue to build on these gains by strengthening our regulatory systems, deepening stakeholder engagement, and ensuring that every policy decision ultimately serves the public interest,” he added.
These continuing reforms take on greater significance as the ERC oversees an industry valued at approximately P4.13 trillion, spanning generation, transmission, distribution, supply, and market operations nationwide.
As the ERC approaches Juan’s first year in office, it continues to sustain reforms across regulatory governance, market oversight, and institutional strengthening through a shared commitment to ensuring reliable, affordable, and sustainable electricity for Filipino consumers.
