New ERC chief vows to speed up, simplify regulation

MANILA, Philippines — Incoming Energy Regulatory Commission (ERC) chairman Francis Saturnino Juan is set to push for a bold reform agenda to ensure faster, more decisive actions as he assumes office on Aug. 8.

Outgoing ERC chairperson and CEO Monalisa Dimalanta, meanwhile, is leaving on a high note, pointing to a downward trend in the country’s power rates under her watch.

In a statement yesterday, Juan outlined his strategy to fast-track regulatory processes and address the ERC’s longstanding backlog in a bid to deliver timely decisions and actions for the energy sector.

For one, he proposed revisiting the agency’s current process for reviewing and approving power supply agreements, with the goal of accelerating the entry of new generation capacity to meet the country’s growing demand.

Given the recent developments in the rate-reset process of power giant Manila Electric Co. (Meralco), Juan wants to review the continued use of the current rate-setting methodology for distribution utilities.

Power utilities like Meralco are subject to a performance-based regulation that requires the submission of revenue requirements for the next four years.

The rate reset process sets the rules and parameters for the investment, operations and pricing mechanisms of highly regulated entities to determine how much should be charged to consumers.

Similarly, Juan is pushing for a review of the current yardstick regulation used to set rates for on-grid electric cooperatives, with the possibility of allowing them to file individual rate applications.

The move, he said, would help distressed electric cooperatives to generate sufficient revenues and continue delivering services to their member-consumers.

Juan is likewise looking at the possibility of allowing utilities to implement their proposed projects without administrative penalties if their applications remain unresolved after three months of submission.

“I will consult the other members of the commission about these proposals, and together, we will consult all stakeholders and thereafter decide as one collegial body,” he said.

President Marcos appointed Juan to the ERC following the irrevocable resignation of Dimalanta, who has been leading the regulatory agency since 2022.

In a press briefing yesterday, Dimalanta said there is still more room to bring down electricity costs in the country, citing the ERC’s ongoing review of fuel audits submitted by power utilities and distribution utilities.

“We issued show cause orders. Some have already responded. Our point is, charges should not have been made without a proper basis. Once the commission completes this process, refunds will follow,” Dimalanta said.

According to Dimalanta, power rates in the Wholesale Electricity Spot Market have been on a downward trend since January 2023 due to improved market conditions and increased supply in the system.

“We saw a significant lowering of rates in most regions in the country… the lowest generation rate in the last 10 years. I think that alone is a good sign,” she said.

Between January 2023 and May 2025, the overall reduction in the average generation cost was at P2.40 per kilowatt-hour, latest ERC data showed.