ERC Defends New GEA-All Charge As Consumers Urge Delay
- January 19, 2026
Energy Regulatory Commission (ERC) Chairperson Atty. Francis Saturnino Juan defended the implementation of the Green Energy Auction Allowance (GEA-All) charge, emphasizing that the new line item in electricity bills funds actual renewable energy consumption rather than future plant development.
In an interview with DZBB, Juan explained that the allowance represents collected funds meant to pay renewable energy suppliers participating in the government’s Green Energy Auction Program (GEAP).
“Ang GEA allowance ay ‘yung mga pondo para doon na makukuha ‘yung kabuuang kabayaran sa mga kuryenteng mage-generate ng mga renewable energy plants,” he said. (“The GEA allowance serves as the pool of funds from which the total payment for electricity generated by renewable energy plants will be sourced.”)
Juan clarified that the GEA-All is not an advance collection or a charge to fund new projects, but a mechanism to pay for electricity already supplied to consumers. “Actual na, na-generate na supply ang pinag-uusapan natin, na kakailanganing tustusan nitong pondo na manggagaling sa GEA-all,” he said. (“We are talking about actual generated supply that needs to be funded by this allowance.”)
Guaranteed Fund To Stabilize Renewables
He added that, unlike conventional plants running on fossil fuels that sell power through bilateral contracts or the Wholesale Electricity Spot Market (WESM), renewable energy plants under the Green Energy Auction Program are paid through a guaranteed rate scheme. The GEA-All ensures that if market prices fluctuate below the auction rate, the difference can be covered, helping stabilize renewable energy investments.
“Pagdating kasi dito sa mga planta na under sa GEAP… ang paunang bayad sa kanila ay manggagaling sa WESM. Pero yung presyo kasi sa WESM, maaaring mas mataas o mas mababa kaysa doon sa naitakda o yung naggarantiyahang babayaran para sa kanila per kilowatt,” Juan explained. (“For plants under the Green Energy Auction Program, initial payments come from the market, but the price there may be higher or lower than the guaranteed rate per kilowatt.”)
According to the ERC, around 30% of the country’s power supply now comes from renewable sources. Juan said the goal is to increase this share to 50% in the coming years through more investments supported by mechanisms like the GEA-All.
“Mga nasa 30% mahigit at ang target naman ay palakihin pa ito hanggang 50%,” he said. (“We are now at over 30% and the target is to increase this to 50%.”)
Consumer Group Seeks Deferral
Consumer welfare group Kuryente.org, however, appealed to the ERC to defer the implementation of the GEA-All, citing the continuing burden of high electricity prices.
“We respectfully ask the ERC to consider deferring the implementation of this measure while the Just Energy Transition bill remains under deliberation,” said Bas Umali, the group’s national coordinator. Umali said that while they understand the long-term benefits of renewable energy, consumers are seeking immediate relief amid already steep power rates.
“We understand the long-term benefits of renewable energy, but right now we consumers are seeking immediate relief due to our prolonged burden under high electricity prices,” he said. “We urge them to prioritize immediate and concrete measures to reduce electricity costs.”
Umali also urged lawmakers to prioritize the Just Energy Transition Bill, which seeks to protect consumers and workers as the country shifts toward cleaner energy sources. He warned that adding new charges without sufficient safeguards could undermine public confidence in the renewable energy transition.
High Price Tag For Clean Energy Goals?
The GEA-All charge, separate from the existing Feed-in Tariff Allowance, reflects the government’s effort to attract renewable energy investors while ensuring cost recovery for producers. Analysts note that while such mechanisms are crucial for expanding clean energy capacity, they also raise questions about timing and consumer impact.
Juan maintained that transparency in billing and fund allocation was central to the ERC’s approach, emphasizing that renewable-related charges remain distinct from fossil-fuel costs to allow consumers to see how their payments contribute to sustainable energy.
As the GEA-All appears on electric bills starting this month, the debate highlights a delicate policy balance: how to accelerate renewable energy growth without adding to household financial strain.
Source:
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