ERC requires more transparent electricity bills
The Energy Regulatory Commission (ERC) has adopted a standardized reporting framework for transmission and ancillary service charges, aiming to improve transparency in electricity bills.
The ERC approved Resolution No. 22, Series of 2026, which adopts a uniform reportorial requirements template addendum for all distribution utilities (DUs).
The measure standardizes how DUs compute, monitor and report transmission and ancillary service charges while strengthening regulatory oversight of these pass-through costs.
Ancillary services are support services that help maintain the stability and reliability of the power grid, particularly during sudden swings in electricity demand or unexpected outages involving power plants or transmission facilities.
The new framework will take effect starting in the first billing cycle after July 16.
Under the resolution, DUs will use a uniform reporting template and computation guidelines for transmission and ancillary service charges. It also introduces standardized validation and reconciliation procedures while the ERC finalizes its revised over- or under-recovery rules.
The regulator said the measure complements Resolution No. 4, Series of 2026, which requires ancillary service charges to be presented separately in electricity bills to make billing more transparent.
The ERC stressed that the latest resolution does not create new or additional charges. Instead, it seeks to provide a clearer and more consistent method for computing, reporting and monitoring existing transmission-related pass-through costs.
ERC Chair and CEO Francis Saturnino Juan said the measure would give consumers greater confidence that the charges reflected in their electricity bills were properly verified.
“Consumers deserve to know what they are paying for,” Juan said, adding that the uniform standards are meant to ensure that only legitimate, properly documented and reasonable costs are recovered from consumers.
According to the ERC, the standardized reporting framework will allow the regulator to more effectively validate these costs before they are passed on to consumers.
It is also expected to improve regulatory compliance among DUs, reduce inconsistencies in report submissions and streamline the ERC review process.
The ERC said Resolution No. 22 formed part of its broader efforts to strengthen consumer protection and promote fair, transparent and accountable electricity pricing in line with the Electric Power Industry Reform Act.
