Households and businesses should brace for higher electricity bills in 2025 following two major rulings by the Energy Regulatory Commission (ERC) which will directly impact power rates across the country.
The first decision involves raising the feed-in tariff allowance (FIT-All)—a charge collected from all on-grid consumers to support renewable energy developers. Starting November 2025, the FIT-All will increase to P0.2073 per kilowatt hour (kWh) from the current P0.1189/kWh.
ERC chairman Francis Saturnino Juan confirmed the approval in a recent briefing, saying the adjustment is necessary to fund payments to renewable energy producers, cover a P19.06-billion shortfall, and maintain a P3.74-billion reserve for future costs.
“This decision is a careful balance. It secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business,” Juan said.
While acknowledging the impact on consumer bills, he emphasized that the increase honors legal commitments to renewable energy producers: “If they have already generated and delivered power supply, they are entitled to be paid as this is a commitment under the law.”
In a separate ruling, the ERC also approved a lower market fee for the Independent Electricity Market Operator of the Philippines (IEMOP), which runs the Wholesale Electricity Spot Market (WESM). The new rate will be P0.0071/kWh—down from P0.0088/kWh—and will remain fixed until 2027.
The market fee funds critical operations like system upgrades and cybersecurity measures for the country’s electricity trading platform.
“This approval is a key step in the ongoing reform of the electricity market. It ensures IEMOP and PEMC can operate sustainably and fulfill their mandates, balancing industry needs with accountability to consumers,” Juan said.
IEMOP president Robinson Descanzo called the move a boost to long-term planning and maintenance, saying it will “effectively sustain and improve market operations.”
The ERC assured the public that both decisions underwent thorough hearings and review. It also pledged transparency, announcing an audit of the FIT-All fund and requiring industry players—including distributors and grid operators—to open their books for inspection.
These changes reflect the government’s efforts to meet renewable energy targets and stabilize the power market, but they also signal increased costs for consumers already dealing with rising living expenses.
