The Energy Regulatory Commission (ERC) has released the guidelines extending the suspension of power service disconnections through the end of December 2026 for qualified low-income residential consumers, balancing immediate household relief with strict settlement conditions for distribution utilities.
Under the new directive, distribution utilities nationwide must halt power disconnections for residential customers consuming up to 200 kilowatt-hours per month who have unpaid bills during the November to December 2026 billing period. To qualify for the grace period, eligible customers must settle all outstanding regular bills and installment amounts from the May to July 2026 billing period on or before November 26, 2026. Consumers who fail to clear their arrears for the May to July window by the set deadline will be disqualified from the disconnection moratorium and face potential service interruption.
The policy provides structured flexibility for consumers managing more recent debt. Unpaid balances from the August to October 2026 period do not disqualify households from the year-end suspension, provided their May to July obligations are fully paid, with the commission setting December 26, 2026, as the final settlement date for the August to October debt. Furthermore, covered consumers are permitted to split their November and December 2026 electricity bills into three equal monthly installment payments, though the regulator continues to encourage those capable of full payment to settle on time.
For power distribution utilities, the policy establishes clear operational boundaries and safeguards revenue collection. While utilities must absorb temporary cash flow delays, the commission has authorized them to issue written notices and proceed with the disconnection after the designated cut-off dates for accounts failing to meet the settlement terms. ERC Chairperson Francis Saturnino Juan said that the commission is evaluating market conditions to determine whether additional relief measures or adjusted policies will be extended to power consumers beyond the end of the year.
