Consumers Seek Delay of Renewable Energy Charge
- January 22, 2026
Electricity consumers are urging the Energy Regulatory Commission (ERC) to defer the implementation of a new charge intended to support renewable energy development, citing already high power costs and the need for measures that ensure a fair transition toward clean energy.
Kuryente.org, a consumer welfare group, appealed to the ERC to postpone the rollout of the Green Energy Auction Allowance (GEA-All), which took effect this month. The allowance funds differential payments to renewable energy developers under the Department of Energy’s (DOE) Green Energy Auction Program (GEAP).
“We respectfully ask the ERC to consider deferring the implementation of this measure while the Just Energy Transition bill remains under deliberation,” said Kuryente.org National Coordinator Bas Umali, adding that the additional cost would further burden consumers already struggling with high electricity prices.
Guaranteed Rates For Renewables
The GEA-All was approved at ₱0.037 per kilowatt-hour, or 3.7 centavos, and will be collected by the National Transmission Corp. (TransCo) as a separate line item on power bills. The fee supports developers who joined the government’s renewable energy auction, ensuring they receive the guaranteed rates promised by the DOE even when market prices fall short.
According to the ERC, the mechanism was finalized after extensive public consultations and hearings. Chairperson Atty. Francis Juan said the allowance is not an independent ERC initiative but a policy tool under the DOE’s auction program aimed at drawing private investments into renewable power generation.
ERC Clarifies Policy Basis
“Payment to those joining the Green Energy Auction comes from their sales to WESM. If that is insufficient compared with the DOE’s guaranteed rate, that is when the GEA Allowance applies,” Juan explained.
He added that the fund acts as a top-up mechanism, covering the gap between actual market earnings and the guaranteed auction price. When spot market prices rise, the subsidy requirement decreases, potentially easing future charges on consumers.
The ERC directed industry participants, including the National Grid Corp. of the Philippines (NGCP) and the Independent Electricity Market Operator of the Philippines (IEMOP), to make their records available for audit to ensure transparency in the GEA-All’s implementation.
Call for Immediate Relief
While consumer groups recognize the long-term benefits of renewable energy, Umali stressed that policymakers should prioritize immediate relief for households and small businesses facing high electricity rates.
“We understand the long-term benefits of renewable energy, but right now consumers are seeking immediate relief,” he said. “We urge authorities to prioritize concrete measures that will reduce power costs, as consumers have long endured persistently high electricity prices.”
Source:
https://business.inquirer.net/564081/consumers-to-pay-extra-for-renewable-energy
