ERC chief marks 100 days with sweeping reforms

PASIG CITY — Energy Regulatory Commission (ERC) Chairperson and CEO Atty. Francis Saturnino Juan marked his first 100 days in office with a reform agenda aimed at boosting transparency, expediting regulatory processes, and improving services for electricity consumers.

Juan, who assumed office on Aug. 11, outlined his vision for a “New ERC” anchored in streamlined procedures, stronger technical capacity, and a revitalized public service mindset.

“Our mission is straightforward: to regulate the power industry in a way that is effective, efficient, and prioritizes the welfare of consumers,” he said.

Under Juan’s leadership, the ERC resolved a major regulatory backlog involving the long-delayed rate reset for private distribution utilities under the performance-based regulation framework.

To address this, the ERC implemented the Rationalized Rules for Setting Distribution Wheeling Rates, a comprehensive overhaul of the rate-setting process.

“We start on a clean slate so that future rate-setting under the PBR becomes forward-looking once more, where the distribution rates will be set using forecasts of efficient costs and sound regulatory principles,” Juan said.

To support renewable energy developers and ensure timely payments, the ERC approved a new Feed-in Tariff Allowance rate in November 2025 covering both small- and large-scale hydropower facilities.

“This decision strikes a careful balance—supporting the growth of renewable energy the country needs, while keeping electricity rates affordable for Filipino households and businesses,” Juan said.

The commission simplified the Net Metering Program by cutting requirements to four core elements and standardizing implementation rules across distribution utilities to encourage wider participation from households and businesses.

The ERC also began drafting rules for reviewing Ancillary Services Procurement Agreements of the National Grid Corporation of the Philippines to strengthen grid reliability and ensure rapid system recovery during outages.

Responding to the President’s call during the State of the Nation Address, the ERC proposed expanding the Lifeline Rate Program into a national scheme providing free electricity to Pantawid Pamilyang Pilipino Program beneficiaries and qualified marginalized end-users consuming 50 kilowatt-hours or less.

The commission approved updated rules for implementing Advanced Metering Infrastructure to support smart grid rollouts through automated billing, outage detection, and real-time consumption data.

To enforce the Public Offering Requirement, the ERC revised its rules to mandate that power firms sell at least 15 percent of their shares to the public within five years, with the timeline starting only after all Philippine Stock Exchange listing prerequisites are met.

In a significant policy shift, the ERC lowered the eligibility threshold for Retail Competition and Open Access and the Retail Aggregation Program from 500 kilowatts to 100 kilowatts average monthly peak demand, effective June 26, 2026, enabling more medium-sized businesses and institutions to choose or aggregate electricity suppliers.

In August 2025, the ERC intervened in Siquijor’s power crisis by revoking the permit of the island’s sole generation supplier due to chronic blackouts and working with the Department of Energy and the National Electrification Administration to expedite the licensing of a replacement to avert widespread outages.

The ERC reported record regulatory output during Juan’s first 100 days, issuing 186 decisions and final orders, 348 provisional authorities and interim reliefs, and 2,575 licenses, including Certificates of Compliance and Retail Electricity Supplier permits.

These issuances covered power supply agreements, ancillary services procurement agreements, capital expenditure applications, wholesale electricity spot market fees, and rate cases across grid and off-grid areas.

The ERC also submitted a position paper to Congress on proposed restructuring legislation and is preparing a reorganization proposal for submission to the Executive Branch early next year, including a revised compensation structure intended to strengthen staff retention and institutional capacity.

Addressing ERC personnel, Juan said: “Ang mahalaga, umarangkada tayo. We use these next few years to fix what needs fixing, streamline what needs streamlining, and lay down the groundwork for the future. Kapag ayos na ang lahat, dun na lang tayo mamahinga.”