THE new chief of the Energy Regulatory Commission (ERC) said ‘internal conflicts’ and ‘weak top management’ are the primary causes of the agency’s case backlog, rather than the number of commissioners.
There was a proposal raised during deliberations on the amendments to the Epira to increase the number of commissioners to nine from the current five as part of restructuring the agency.
ERC chairman Francis Saturnino Juan said an increase in the number of commissioners does not necessarily correlate with a higher resolution rate of cases, nor does it facilitate expedited decision-making.
Instead, he pointed out, the proposal is likely to institutionalize gridlock, saying an increase in the number of commissioners may result in more protracted debates, deeper divisions, and greater challenges in achieving the majority consensus necessary for critical decisions. In a nutshell, the proposed reform addresses a non-existent problem while creating a new one.
‘We actually raised concern on the proposal for the increase in the number of the commissioners.we are not in favor of that expansion of the commission to nine. The reason why we are not in favor of that expansion is because it’s more in reaction to what was happening. And that failure is not because of the current structure but because of something else,’ Juan said.
The ERC chief believes that the challenges that have plagued the commission in recent years-case backlogs, regulatory uncertainty, and perceived indecisiveness-are symptoms of deeper, non-structural ailments.
He said the ERC’s effectiveness has been disproportionately impacted by internal conflicts and a weak top management. The problem was not the number of commissioners, but the quality of their collaboration.
‘Without clear directives and firm management from the top, operational momentum stalled, and backlogs inevitably piled up,’ a position paper drafted by the ERC stated.
Further, the ERC struggles to compete with the private sector for top-tier talent-the seasoned engineers, economists, and utility practitioners who can navigate the complex technical and financial nuances of the energy sector.
‘Similarly, an increase in the number of Commissioners does not necessarily correlate with a higher resolution rate of cases, nor does it facilitate expedited decision-making. Instead, it is likely to institutionalize gridlock.
‘An increase in the number of voices may result in more protracted debates, deeper divisions, and greater challenges in achieving the majority consensus necessary for critical decisions. This reform addresses a non-existent problem while creating a new one,’ it added.
First 100 days
Meanwhile, Juan capped his first 100 days in office with reforms aimed at strengthening transparency, accelerating regulatory processes, and improving service for electricity consumers.
Juan’s leadership has focused on addressing a major backlog: the decade-long delay in the rate reset process for private distribution utilities (PDUs) under the performance-based regulation (PBR) framework. Juan helped craft and directed the implementation of the Rationalized Rules for Setting Distribution Wheeling Rates to facilitate the restart of the reset process for all PDUs.
‘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,’ said Juan.
The ERC also acted to sustain the renewable energy (RE) sector, approving a new Feed-in Tariff Allowance (FIT-All) rate in November 2025 to ensure timely payment to RE developers.
The ERC likewise simplified net metering procedures to four core requirements and standardized rules across DUs, allowing households and businesses to avail themselves of the benefits of the net-metering program with ease.
Besides the approved resolutions on PBR, FIT-All, and net metering rules amendments, the ERC initiated development of other key resolutions. These include the rules to govern the review process for the Ancillary Services Procurement Agreements procured by the National Grid Corporation of the Philippines, and the proposed resolution to expand the coverage of the lifeline program.