ERC yet to decide on extension of GEA-All suspension

ELECTRICITY CONSUMERS may face higher power costs, as the Energy Regulatory Commission (ERC) has yet to decide whether to extend the suspension of the green energy auction allowance (GEA-All) collection.

Sharon O. Montañer, ERC’s director for market operations service, said the extension of the suspension will depend on the status of the GEA-All fund.

“So next month, we’re going to assess again if there are (enough) funds. If we see that there’s still difficulty in the payment of the bills, or electricity rates are quite high compared with previous months, and if there is sufficient balance in the fund to suspend, we can extend the suspension,” she told reporters on the sidelines of the BusinessWorld Economic Forum on May 18.

Earlier this month, the ERC ordered to temporarily halt the collection of GEA-All from May to June to ease the financial burden on consumers amid rising inflation and global economic pressures.

GEA-All is a uniform charge amounting to P0.0371 per kilowatt-hour (kWh) that is passed on to on-grid consumers. It is a separate line item in the bills of consumers that started in January 2026.

The amount collected is used to fund the incentives of new renewable energy (RE) projects being awarded under the green energy auction program (GEAP).

As of May 5, GEA-All Fund maintains a balance of approximately P466.49 million, which is sufficient to cover the projected payment requirements of eligible RE developers during the suspension period, according to the ERC.

“If the crisis extends again, then, definitely, the commission will look into that (extension of the suspension) as it has always been one of the tools to relieve customers,” Ms. Montañer said.

Meanwhile, Ms. Montañer said the ERC is not looking to suspend the feed-in tariff allowance (FIT-All). She noted there are no excess funds as the funds are only enough to cover payments to RE developers.

“There’s no sufficient buffer for FIT-All. It’s only enough to pay for the RE developers,” she said.

FIT-All is another RE charge amounting to P0.2011 per kWh that is separate from GEA-All which is being paid by consumers to support emerging RE technologies.

Nic Satur, Jr., chief advocate officer of consumer group Partners for Affordable and Reliable Energy, argued that GEA-All should be permanently removed, as consumers have been shouldering expensive power rates.

“I believe that GEA-All has no legal basis and it should not be collected from consumers,” Mr. Satur told BusinessWorld. “We support our move towards clean energy but not at the expense of consumers.”

Mr. Satur said that consumers have suffered “long hours of brownout, expensive electricity rate and poor service” but are continuously burdened by pass-through charges, including GEA-All and FIT-All.

The crisis in the Middle East has pushed global oil prices higher, increasing power generation costs in the Philippines and driving up electricity rates.

To provide relief to consumers, the regulator directed distribution utilities to suspend electricity service disconnections and to implement staggered or deferred payment schemes.

The suspension covers unpaid electricity bills for both residential and nonresidential consumers covering the May-to-July billing periods.

Customers with a monthly consumption not exceeding 200 kWh may defer payment of their bills and settle them on a staggered basis over three months from receipt of the bill. — Sheldeen Joy Talavera