Households with unpaid electricity bills will continue to get relief as the Energy Regulatory Commission (ERC) is set to extend the no-disconnection policy until December.
‘We’re targeting until the end of the year, then we will assess from there on what [will be our next move],’ ERC Chair Francis Saturnino Juan said on Monday on the sidelines of the Asean Ministers on Energy Meeting in Pasay City.
But he said the no-disconnection policy would be limited to smaller consumers, or residents consuming 200 kilowatt-hours or less monthly, as the measure meant to ease consumers’ financial burden has affected distribution utilities and electric cooperatives.
‘We have also received numerous requests from our utilities, including electric cooperatives, because of the no-disconnection policy that applies to all of their customers, including large commercial and industrial customers. Many of their customers are not able to pay their bills on time,’ Juan said.
‘However, the utilities still need to pay their suppliers, including NGCP (National Grid Corp. of the Philippines), on time. As a result, their cash flow is being affected. Their operations are becoming financially tight,’ he added.
‘More vulnerable’
The ERC chief said the commission was able to preserve the protection of ‘more vulnerable’ customers as they continue to suffer from elevated costs.
Power disconnections have been suspended following President Ferdinand Marcos Jr.’s declaration of a state of national energy emergency in March amid escalating tensions in the Middle East involving the United States, Israel and Iran.
The war in the oil-producing region continues to cause volatility in fuel prices.
Based on earlier advisories, power distributors were directed to implement flexible payment options to consumers to cushion the impact of persistently high electricity rates.
Generation companies, the Power Sector Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp., NGCP, independent power producers, and market operators were also ordered to extend a similar payment framework to distribution utilities.
Meanwhile, the ERC has suspended the collection of the green energy auction allowance (GEA-All) in electricity bills until December.
Asked about a possible extension beyond 2026, Juan said they would still need to assess the sufficiency of the GEA-All fund, which is meant to finance renewable energy projects nationwide.