MANILA, Philippines — The Energy Regulatory Commission (ERC) has required distribution utilities (DUs) to submit detailed reports on increases in generation costs for “timely regulatory intervention and consumer protection.”
The directive follows the government’s declaration of a state of national energy emergency amid supply chain disruptions caused by the raging Middle East conflict.
The order covers DUs whose blended generation rate climbed by more than P1 per kilowatt-hour (P1.00/kWh) compared to the previous supply 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 on Saturday.
Submission must be made electronically at least five days prior to the intended release of monthly consumer bills
The ERC said the move was part of the government’s broader efforts to cushion the impact of rising global fuel prices on electricity costs.
The commission said it would closely monitor price movements and determine appropriate mitigating measures before these rate adjustments were passed on to consumers.
“In times of global volatility, our foremost responsibility is to protect Filipino consumers while ensuring the continued stability of our power sector,” ERC Chairman and Chief Executive Officer Francis Saturnino Juan 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,” he added.
The generation charge typically accounts for the largest portion of electricity bills and fluctuates depending on the cost of power supply sourced by DUs.
The ERC encouraged all power distributors to coordinate with their suppliers for staggered recovery schemes and allow consumers to pay for the increase over a period of time, rather than in a single billing cycle.
This approach, the ERC said, would help ease the immediate financial burden on households while ensuring that legitimate costs were recovered in a manageable manner.