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Manila Bulletin devider Business devider The Economy devider Electricity bills to drop as ERC pauses clean energy fee

Electricity bills to drop as ERC pauses clean energy fee

Published May 8, 2026 05:00 pm
The Energy Regulatory Commission (ERC) ordered a temporary suspension of the Green Energy Auction Allowance (GEA-All) collection, a move expected to lower electricity bills for consumers through June.
The regulator announced on Friday, May 8, that the suspension of the ₱0.0371 per kilowatt-hour charge will take effect immediately.
The ERC decision follows an earlier mandate to halt service disconnections for the May and June billing cycles as the government seeks to insulate households from inflationary pressures and a global energy crunch.
The suspension applies to all collection agents, including distribution utilities, retail electricity suppliers, and the National Grid Corp. of the Philippines.
According to the commission’s findings, the GEA-All fund currently maintains a balance of approximately ₱466.49 million. The regulator determined this amount is sufficient to cover projected payments to eligible renewable energy developers and accommodate additional facilities expected to come online by the end of next month.
ERC Chairperson Francis Saturnino Juan said the move balances the state’s long-term environmental goals with the immediate financial realities facing Filipino families.
While the commission remains committed to the transition toward sustainable energy, it must also recognize the challenges posed by rising prices and international market volatility, Juan said.
He noted that the temporary relief will not compromise the financial support guaranteed to renewable energy players under existing policies.
The GEA-All is a component of the government’s efforts to incentivize the shift toward wind, solar, and other green energy sources.
Under the program, developers are guaranteed a feed-in tariff, which is funded through the small per-kilowatt-hour fee collected from end-users. The current surplus in the fund allows the regulator to pause collections without defaulting on those obligations.
Juan said the agency will continue to evaluate its policies to ensure they safeguard consumers from sudden price shocks while maintaining a stable investment climate for the power sector.
The ERC will monitor the fund balance to determine when the collection must resume to ensure the continued viability of the country’s renewable energy roadmap. (Gabriell Christel Galang)

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