The Energy Regulatory Commission (ERC) has directed distribution utilities (DUs) to submit detailed reports justifying increases in generation costs, citing the need for “timely regulatory intervention and consumer protection.”
The order comes after the government declared a state of national energy emergency amid supply chain disruptions caused by the conflict in the Middle East. It applies to DUs whose blended generation rate rose by more than ₱1 per kilowatt-hour compared to the previous month.
“These DUs are required to submit the basis for their rate adjustments, including detailed computations, supporting invoices from power suppliers and any proposed staggered recovery schemes agreed upon with suppliers,” the ERC said Saturday.
Reports must be filed electronically at least five days before the release of monthly consumer bills.
ERC Chairperson and CEO Francis Saturnino Juan emphasized that the move aims to shield households from sudden spikes in electricity costs.
“In times of global volatility, our foremost responsibility is to protect Filipino consumers while ensuring the continued stability of our power sector,” he said.
“By requiring early and transparent reporting from DUs, the Commission is better positioned to review rate increases, validate their basis, and implement measures — such as staggered recovery — that will help ease the burden on consumers,” Juan added.
The generation charge, which typically makes up the largest portion of electricity bills, fluctuates depending on the cost of power supply sourced by DUs.
The ERC encouraged utilities to coordinate with suppliers for staggered recovery schemes, allowing consumers to spread payments over several billing cycles rather than absorbing the increase in one go.
This approach, the commission said, would ease the immediate financial strain on households while ensuring legitimate costs are recovered in a manageable manner.