The Energy Regulatory Commission (ERC) is moving to overhaul the nation’s power landscape in 2026, pledging to clear a long-standing case backlog and finalize pricing for emerging technologies like offshore wind to lower costs for households.

In a statement, ERC Chairperson Francis Saturnino Juan said the regulator will prioritize consumer protection and investor confidence through a five-pillar strategy aimed at modernizing the aging energy market.

Juan said the plan focuses on evidence-based rate setting, market oversight, and a more aggressive timeline for resolving pending regulatory approvals.

According to the ERC chief, the primary hurdle for the commission remains the completion of long-overdue regulatory resets for distribution utilities, critical for determining the rates that power firms can charge consumers.

Alongside these traditional reviews, the ERC is racing to establish pricing frameworks for offshore wind and liquefied natural gas, two sectors the government views as essential for long-term energy security.

The ERC has already set a tentative Green Energy Auction Reserve price for fixed-bottom offshore wind at ₱10.3859 per kilowatt-hour. This benchmark will be subject to public consultations scheduled for Jan. 5 and 6, with the regulator expected to announce a final, binding price by Jan. 14.

Setting these rates is seen as a prerequisite for attracting the billions of pesos in foreign and local investment required to build out the country's maritime wind potential.

To speed up the flow of capital into the sector, Juan said the ERC will streamline its internal hearing processes.

The agency is looking to align its operations with the Energy Virtual One-Stop-Shop and the Ease of Doing Business Act, mandates designed to eliminate the bureaucratic red tape that has historically delayed power plant construction and supply agreements.

The ERC is also updating technical standards to accommodate a more decentralized grid. This includes expediting investment approvals for utilities and renewable energy projects, as well as refining rules for net metering, which allows consumers with solar panels to sell excess power back to the grid.

On the consumer side, the commission plans to widen the scope of subsidies for "lifeline" users—low-income households that consume minimal electricity—and senior citizens.

The regulator is also coordinating with the Bureau of Internal Revenue to ensure that value-added tax and subsidies are applied fairly across utility bills. These moves come as the government faces continued pressure to address some of the highest electricity prices in Southeast Asia.