The Energy Regulatory Commission (ERC) is pointing to its strong financial performance to justify its request for an increased 2027 budget aimed at speeding up rate reviews, upgrading technology, and expanding power supplier choices to smaller consumers and eventual residential units.
Speaking at a Senate budget hearing on Thursday, ERC Chairperson Francis Saturnino Juan highlighted that the agency collected ₱2.354 billion in 2025, easily surpassing its ₱1.065-billion target and exceeding its operational funding.
“So, as you can see, the ERC is a net revenue generator, a cash machine for the government,” Juan said.
While the regulator requested ₱1.706 billion for 2027, the National Expenditure Program (NEP) allocated only ₱944.07 million, creating a 44.67 percent shortfall of ₱762.08 million.
The ERC is asking lawmakers to restore ₱728.16 million, specifically targeting operating expenses and capital investments needed for rate-reset consultants, digital updates, and clearing case backlogs.
“The disallowance is mainly in MOOE and capital outlay, the very items that will be funding our rate reset consultancies, ICT modernization, and case resolution capacity,” he said.
The requested budget will also help expand the Retail Competition and Open Access (RCOA) scheme, following a threshold reduction from 500 kilowatts (kW) to 100 kW. The policy lets eligible customers choose their electricity providers rather than relying solely on local distribution utilities.
The agency aims for full 100-kW implementation in 2027 alongside green power initiatives to lay the groundwork for eventual home use.
“We integrate this threshold into the retail market roadmap alongside the Green Energy Option Program and the Retail Aggregation Program to lay the groundwork for eventual household sector inclusion,” Juan said.
The regulator clarified that household integration will take time, as necessary consumer protection rules and framework adjustments must be established first. Competitive power arrangements produced an estimated ₱19.87 billion in savings for customers in 2025.
Beyond market expansion, the agency intends to enforce cheapest-cost power sourcing rules for distribution utilities, resume regular utility rate reviews, streamline grievance mechanisms, and merge digital tools into a unified portal.
The ERC added that its operational spending efficiency reached 84.2 percent in 2025, up from 62.01 percent in 2023, while mid-2026 revenue collections reached ₱958.31 million.
“This budget request of ₱1.7 billion is more than offset by what we return to the Treasury,” Juan said.