The Energy Regulatory Commission plans to extend its suspension of electricity service disconnections through the end of the year, though the policy will feature a narrower target audience to balance relief for consumers with the financial stability of power utilities.
Speaking at the 26th ASEAN Energy Business Forum on Monday, ERC Chairman Francis Saturnino Juan announced that the directive will be released within the month to replace the current order set to expire in October. Under the revised plan, protection against disconnections will be limited strictly to low-income residential consumers who use 200 kilowatt-hours or less per month.
This change in scope carries significant economic implications for the energy sector. The broad coverage of the previous policy—which applied to all customers, including large commercial and industrial entities—led to widespread delays in bill payments. Electric cooperatives and power distribution companies faced growing liquidity pressures because they remained obligated to pay power suppliers on schedule despite stalled collection from large commercial users. By narrowing the relief strictly to lower-consumption households, the commission aims to safeguard struggling families while alleviating cash flow strains on utilities, ensuring the broader power grid stays financially viable.
Alongside the relief extension, the regulator is evaluating whether to prolong the suspension of the Green Energy Auction allowance collection past its scheduled end in 2026. The allowance represents a uniform charge of 0.0371 pesos per kilowatt-hour added to power bills to support renewable energy developers. Juan said the regulators will analyze the overall status and sufficiency of the fund following the current pause before deciding whether consumers can receive continued relief from the fee.
