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Manila Bulletin devider Business devider The Economy devider ERC sets new power fee at ₱0.0371/kWh to fund renewable projects

ERC sets new power fee at ₱0.0371/kWh to fund renewable projects

Published Dec 12, 2025 03:29 pm
Consumers could face slight price increases in their electricity bills beginning next year after the Energy Regulatory Commission (ERC) approved the collection of the Green Energy Auction allowance (GEA-All).
The GEA-All, a new charge intended to compensate renewable energy (RE) developers, is set to take effect soon. The costs will be collected by distribution utilities (DUs), the grid operator, the Independent Electricity Market Operator of the Philippines (IEMOP), and retail electricity suppliers (RES), who will then pass the charge on to consumers.
“It is very much similar to the feed-in tariff allowance [FIT-All], which is a universal charge per kilowatt-hour charged to all grid customers,” said Sharon Montañer, ERC director for market operations, in a briefing on Friday, Dec. 12. 
“The ones collecting this are the DUs from their captive customers, the NGCP [National Grid Corp. of the Philippines] from their directly connected customers, and the electricity suppliers from the contestable customers,” she added.
The approved GEA-All rate is ₱0.0371 per kilowatt-hour (kWh), which will appear as a separate line item on consumers' power bills. The total value of the GEA-All component is estimated at ₱5.7 billion.
This charge is expected to be reflected in the rate adjustments of DUs, including the Manila Electric Company (Meralco), and is projected to take effect by January 2026.
“All the collections are remitted to TransCo [National Transmission Corp.], the administrator of the fund, and [it] pays the eligible GEA developers for their electricity generation,” Montañer added.
The GEA is a program initiated by the Department of Energy (DOE) that employs a competitive bidding system to accelerate RE projects and draw private investment into clean energy. The current allowance collection will cover developers from the first, second, and fourth auction rounds.
GEA-1, conducted in 2022, focused on solar, wind, biomass, and run-of-river hydropower. GEA-2, conducted in 2023, focused on ground-mounted, rooftop, floating solar, onshore wind, and biomass. The recently concluded GEA-4 auctioned ground-mounted and floating solar, as well as integrated solar + energy storage systems (IRESS), and onshore wind technologies.
Despite the scheduled GEA-All increase, the ERC is also adjusting the existing FIT-All rate down to ₱0.2011/kWh from its current rate of ₱0.2073/kWh, which was approved last October.
“For the first time since the FIT implementation began, the ERC has been able to set the FIT-All rate before the year it is meant to be applied,” said ERC Chairperson Francis Saturnino Juan. “This demonstrates the ERC’s commitment to acting swiftly and with urgency on all filings, thereby fostering a more stable and predictable regulatory environment.”
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