Manila: Qualified Energy Storage System (ESS) facilities are now exempted from paying Power Delivery Service (PDS) charges during declared national energy emergencies. The Energy Regulatory Commission (ERC) has issued a resolution to ensure the availability of power system reliability during such emergencies.

According to Philippines News Agency, the policy covers energy storage activities such as battery charging, pumped-hydro operations, and similar technologies intended for grid support or reinjection. However, electricity used for final consumption remains subject to regular transmission charges, and other applicable fees are not covered by the suspension to maintain cost recovery mechanisms and prevent market distortions.

"This is a calibrated and time-bound measure to remove disincentives to the use of energy storage systems when they are most needed," ERC Chairperson and Chief Executive Officer Francis Saturnino Juan stated. The primary aim is to bolster grid reliability and energy security while ensuring fairness, transparency, and consumer protection.

The resolution addresses how transmission charges are applied to ESS during emergency conditions, acknowledging that energy drawn for storage is temporarily absorbed and later returned to the grid, rather than consumed. ESS facilities must register with the National Grid Corporation of the Philippines to benefit from the fee suspension, and the application must be processed within five working days.

Juan further emphasized that this reform allows energy storage to be utilized more effectively during times of need, thereby helping to stabilize supply and protect consumers from volatility.