Philippines ERC Suspends Green Energy Surcharge for May and June to Ease Consumer Burden

Below are the key points regarding the Philippine Energy Regulatory Commission’s (ERC) suspension of the green energy surcharge for May and June:

Key Policy and Scope of Application

Suspended Fee: The Philippine Energy Regulatory Commission (ERC) has ordered the suspension of the Green Energy Auction (GEA-All) surcharge for the billing cycles of May and June 2026.

Exemption Criteria: This policy exempts all electricity consumers nationwide from the 0.0371 peso per kilowatt-hour (kWh) surcharge.

Implementing Entities: The suspension order applies to all collection agents, including Distribution Utilities (DUs), Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP).

Policy Background and Financial Status

Alleviating Economic Pressure: Against the backdrop of rising inflation and global economic pressures, this measure aims to provide additional financial relief to households and electricity consumers nationwide, thereby reducing electricity costs.

Adequate Fund Balance: Following an assessment, the ERC found that as of May 5, 2026, the GEA-All Fund still held a healthy balance of approximately 466.49 million pesos.

Safeguarding Renewable Energy Projects: The current remaining funds in the fund are sufficient to meet the payment obligations to eligible renewable energy developers during the suspension period, including new facilities expected to be connected to the grid in June 2026.

Official Statement and Follow-up Plans

Balancing Development and Livelihoods: Francis Saturnino C. Juan, Chairman and CEO of the ERC, stated that while the Commission fully supports the transition to clean energy, it also recognizes the current cost-of-living challenges faced by Filipino households. This temporary measure aims to balance renewable energy development with consumer protection.

Policy Does Not Affect Long-Term Plans: This suspension will not hinder the government’s renewable energy commitments and project advancement under the Green Energy Auction Program (GEAP).

Follow-up Review: The ERC plans to conduct a comprehensive review of the GEA-All Fund’s status in June 2026. At that time, it will determine whether to further extend the suspension based on the fund’s adequacy and market conditions.