Manila: The additional charges that will be collected from power consumers starting January 2026 may seem to be a burden, but an official of the Energy Regulatory Commission (ERC) said it is aimed to encourage more players, which will further boost supply.
According to Philippines News Agency, the ERC announced last week the collection of a Green Energy Auction Allowance (GEA-All) charge amounting to PHP0.0371 per kilowatt-hour starting next month for all power consumers connected to power grids nationwide. The new charge is intended to fully fund power plants included in the Department of Energy’s (DOE) green energy auction, focusing on facilities that produce renewable energy (RE).
ERC Chairperson and Chief Executive Officer (CEO) lawyer Francis Saturnino Juan, speaking on Bagong Pilipinas Ngayon on Thursday, emphasized that this fee is designed to entice more investors to establish power plants. “Kailangan na ma-sustain natin iyong pagkakaroon ng mga karagdagang puhunan dito sa ating power sector dahil p
ataas nang pataas iyong ating demand so kailangan talaga na mayroong cost recovery para doon sa mamumuhunan para tuluy-tuloy ang pagtatayo ng mga bagong planta. (We need to sustain the presence of additional capital for our power sector since demand is rising, so there is a need for cost recovery for investors to put up more power plants),” he stated.
When questioned about how the ERC would ensure that the funds would be used for the delivery of efficient service, Juan explained that power plant investors would not establish the facilities if they did not anticipate producing the product and earning a profit.
