The Energy Regulatory Commission (ERC) will extend its no-disconnection policy on unpaid electricity bills until December, limiting coverage to households that consume 200 kilowatt-hours (kWh) or less per month, ERC Chairman and CEO Francis Saturnino Juan said.
Juan spoke on Monday, October 5, on the sidelines of an ASEAN energy event in Pasay City, according to a report by the Philippine Daily Inquirer. The ERC plans to issue an advisory within October covering unpaid bills for November and December.
“We have already discussed among the commission that we will extend, but the scope will be limited,” Juan said.
The latest move is the second extension of the policy. It was first imposed for the May-to-July billing periods and was later extended through October.
Power disconnections have been suspended since President Marcos declared a state of national energy emergency in March, amid tensions in the Middle East involving the United States, Israel and Iran.
The policy currently covers all electricity customers nationwide, including residential and non-residential users. Households that consume no more than 200 kWh a month may also defer payment of their bills for the covered period. Deferred amounts may be settled over three months, with the installments reflected in later billing statements.
Juan said the ERC limited the coverage after requests from power utilities, including electric cooperatives, whose customers include large commercial and industrial users covered by the same policy.
“We have also received numerous requests from our utilities, including electric cooperatives, because of the no-disconnection policy that applies to all of their customers, including large commercial and industrial customers. Many of their customers are not able to pay their bills on time,” Juan said.
“However, the utilities still need to pay their suppliers, including NGCP (National Grid Corp. of the Philippines), on time. As a result, their cash flow is being affected. Their operations are becoming financially tight,” he added.
The ERC chief said the commission was able to keep the protection in place for more vulnerable customers who continue to face elevated costs. “We do understand that the situation is really difficult right now,” Juan said.
Earlier advisories directed power distributors to implement flexible payment options for consumers amid persistently high electricity rates. Generation companies, the Power Sector Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp., NGCP, independent power producers and market operators were also ordered to extend a similar payment framework to distribution utilities.
Separately, the ERC has suspended the collection of the green energy auction allowance (GEA-All) in electricity bills until December. The allowance supports the government’s green power auction program, which is meant to attract more investment in the renewable energy sector. Asked about a possible extension beyond 2026, Juan said the ERC would still need to assess whether the GEA-All fund is sufficient.
The ERC has not yet decided whether the no-disconnection policy will continue past this year. “We’re targeting until the end of the year, then we will assess from there on what [will be our next move],” Juan said.
