The additional charges to be collected from power consumers starting January 2026 may appear burdensome, but an official of the Energy Regulatory Commission (ERC) said the move is intended to attract more industry players, which would ultimately increase power supply.
Last week, the ERC announced, among other measures, the imposition of a Green Energy Auction Allowance (GEA-All) charge of PHP0.0371 per kilowatt-hour beginning next month for all power consumers connected to power grids nationwide.
The new fee will fully finance power plants covered under the Department of Energy’s (DOE) green energy auction program, which supports facilities that generate renewable energy (RE).
ERC Chairperson and Chief Executive Officer (CEO) lawyer Francis Saturnino Juan said in an interview on Bagong Pilipinas Ngayon on Thursday that the charge is meant to encourage more investors to build power plants.
“We need to ensure a steady flow of additional capital into the power sector as demand continues to grow, which is why investors must be able to recover costs in order to develop more power plants,” he said.
When asked how the ERC would ensure the funds are used to deliver efficient service, Juan said investors would not construct facilities unless these generate power and provide returns.
PIA PHOTO