Republic of the Philippines


A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.

ERC Prioritizes Resolution of Cases Giving Customer Relief

The Energy Regulatory Commission (ERC), in separate Orders issued to twenty (20) Luzon-based Distribution Utilities (DUs), directed the refund of over collection that they incurred in the Generation Rate (GR), Transmission Rate (TR), System Loss Rate (SLR), Lifeline Subsidy Rate (LSR) and Senior Citizen Subsidy Rate (SrSR) covering the period from January 2017 to December 2019.  The refund is to be implemented for twelve (12) months effective in the next billing cycle.  

“Upon our initial evaluation, the Commission found that the Luzon-based DUs incurred over recoveries in the various pass-through charges that they collected from their customers. These pass-through charges, should be revenue-neutral on the part of the DUs, and they are not allowed to incur any additional revenue or losses therefrom,” said ERC Chairperson and CEO Agnes VST Devanadera.  

The Luzon DUs over collections ranged from above PhP5,000.00 up to as high as PhP146 Million, which is equivalent to an Over-all Average Tariff Adjustment (OATA) ranging from PhP0.0014 to PhP0.6266/kWh.

The ERC has adopted a policy that DUs with Compliance Filings with a resulting net over-recovery shall be directed to immediately refund the over-recovery, pending the complete and final evaluation of their Applications. The said resolution is in line with the principle that automatic adjustments of pass-through components of retail rates by DUs must be revenue neutral and any over recovery therefrom must be immediately refunded to their customers.

“The Commission resolved to prioritize the resolution of cases that will provide some customer relief in terms of rate reduction to help consumers cope with the still ongoing pandemic,” ERC Chair Devanadera added.    


© 2021 - Energy Regulatory Commission