ERC Suspends Green Energy Charge For 2 Months To Ease Consumer Burden

ERC Suspends Green Energy Charge For 2 Months To Ease Consumer Burden

  • May 14, 2026

The Energy Regulatory Commission (ERC) has ordered the temporary suspension of the collection of the Green Energy Auction Allowance (GEA-All) for the May and June 2026 billing periods, a move aimed at easing electricity costs for consumers amid rising inflation and global economic uncertainties.

Under the advisory issued by the regulator, the ₱0.0371 per kilowatt-hour charge normally collected from electricity consumers nationwide will not be imposed for the two-month period. The suspension covers all collection agents, including distribution utilities (DUs), Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP).

The ERC said the decision was reached after assessing the current condition of the GEA-All Fund, which had an available balance of around ₱466.49 million as of May 5, 2026. According to the Commission, the fund remains sufficient to cover projected payment obligations to eligible renewable energy (RE) developers during the suspension period.

Consumer Relief

The regulator said the temporary halt in collection forms part of broader efforts to cushion Filipino households from the impact of accelerating inflation and global market volatility.

ERC Chairperson and Chief Executive Officer Francis Saturnino Juan said the agency remains committed to balancing renewable energy development with consumer welfare, particularly during periods of economic strain.

“While the ERC remains fully committed to supporting the country’s transition to cleaner and more sustainable energy sources, we also recognize the immediate challenges being faced by Filipino households due to rising prices and global uncertainties,” Juan said.

“This temporary suspension of the GEA-All collection is intended to provide additional relief to consumers while ensuring that renewable energy developers continue to receive the support provided under existing policies,” he added.

The ERC also stressed that the suspension will not disrupt the implementation of government renewable energy initiatives or existing commitments under the Green Energy Auction Program (GEAP).

Renewable Energy Funding Continues

The GEA-All serves as the funding mechanism used to support payments to renewable energy developers participating in the government’s Green Energy Auction Program. The program is intended to accelerate the development of renewable energy facilities and increase the share of cleaner energy sources in the country’s power mix.

Despite the temporary suspension of collections, the ERC said the current balance of the fund is adequate to meet expected payment requirements, including support for additional renewable energy facilities anticipated to participate by June 2026.

Juan said the Commission would continue to ensure that renewable energy policies remain “fair, transparent, and sustainable” while also introducing measures that could soften the impact of rising electricity-related costs on consumers.

“At the same time, we are committed to implementing practical interventions that can help cushion consumers from sudden increases in electricity-related costs,” he said.

Further Evaluation

The ERC said it will undertake a comprehensive review of the GEA-All Fund by June 2026 to determine whether the suspension can be extended further.

The review will consider the sufficiency of the fund as well as prevailing market conditions before the Commission decides on the possible resumption or continued suspension of collections.

The temporary relief measure comes as policymakers and regulators continue to balance affordability concerns with the country’s long-term energy transition goals, including efforts to expand renewable energy capacity and reduce dependence on fossil fuels.

Source:

https://www.manilatimes.net/2026/05/10/business/top-business/gea-all-collection-for-may-june-on-hold/2339959

https://www.gmanetwork.com/news/money/economy/986936/erc-suspends-gea-all-collection/story

https://pia.gov.ph/news/erc-halts-green-energy-fee-to-lower-may-june-electricity-bills

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