ERC pushes staggered power cost recovery

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March 30, 2026 | 12:00am

MANILA, Philippines — The Energy Regulatory Commission (ERC) has urged power utilities to implement staggered billing with suppliers to soften the impact of rising electricity rates on consumers.

The staggered recovery scheme would allow households to spread power generation cost increases over a period of time rather than in a single billing cycle.

The ERC noted that an increase of over P1 per kilowatt-hour (kWh) in the generation charge could “significantly” raise monthly power bills, particularly for households with higher energy use or those already struggling with rising living costs.

The generation charge, which typically accounts for over half of consumer bills, covers the cost of power procured by distribution utilities (DUs) from suppliers, including the Wholesale Electricity Spot Market (WESM).

Citing market simulations, the Department of Energy earlier said power from WESM could spike by more than P5 per kWh due to rising fuel prices triggered by the Iran crisis.

“In times of global volatility, our foremost responsibility is to protect Filipino consumers while ensuring the continued stability of our power sector,” ERC chairperson and CEO Francis Saturnino Juan said.

Following the declaration of a national energy emergency, the regulator ordered all DUs facing sharp hikes in generation costs to submit detailed reports to ensure prompt intervention and safeguard consumers.

In particular, the directive is intended for DUs with an increase of over P1 per kWh in their blended generation rate compared to the previous supply month.

Reports must provide the basis for the rate adjustments, including detailed computations, supplier invoices and any agreed staggered recovery schemes.

Submissions are required at least five days before monthly consumer bills are released.

“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 said.

The ERC has suspended WESM operations since March 26, with administered prices implemented starting April 1 to prevent sudden spikes.