ERC outlines plan for fair and stable power rates

The Energy Regulatory Commission (ERC) presented its regulatory priorities and strategic direction before the House Committee on Energy, underscoring its renewed commitment to fair electricity rates, consumer protection, and fostering a stable investment climate in the Philippine power industry.

During the Aug. 18 hearing at the House of Representatives, ERC Chairperson and CEO Atty. Francis Saturnino C. Juan, joined by senior Commission officials, outlined a five-point strategy designed to enhance transparency, accountability, and efficiency in the electric power sector.

The ERC’s strategy includes fair and evidence-based rate setting, timely case resolution, stronger oversight to promote competition, a predictable regulatory environment to support investor confidence, and the development of a more proactive, consumer-oriented Commission.

“We will not wait for problems to arise—we will engage stakeholders early, anticipate challenges, and craft rules that are responsive to the needs of both the industry and the public,” Juan told lawmakers during the session chaired by Palawan 2nd District Rep. Jose Chaves Alvarez.

“Our goal is simple: to keep the lights on, the prices fair, and the service reliable,” he added.

Juan also emphasized the importance of policy foresight to balance market development with consumer welfare amid fluctuating energy costs and investment risks.

ERC’s initiatives are being implemented as part of its mandate under the Electric Power Industry Reform Act of 2001 (EPIRA), which aims to ensure transparent and reasonable pricing of electricity in the Philippines.

The Commission has recently ramped up efforts to streamline its procedures, digitalize regulatory filings, and address backlogs in rate cases and complaints, all of which have been long-standing concerns among power producers, distributors, and consumers alike.

In recent years, electricity rates in the Philippines have ranked among the highest in Southeast Asia, prompting renewed calls from advocacy groups and lawmakers for more stringent oversight and cost-reflective pricing mechanisms.

To address this, the ERC has increased coordination with the Department of Energy (DOE) and industry stakeholders to review market practices, enforce compliance with service standards, and reform regulatory frameworks to better reflect the true cost of power generation and distribution.

By pushing for evidence-based policies and greater stakeholder participation, the Commission aims to build public trust and ensure that power rates remain just and equitable for Filipino consumers.