ERC sets rules to curb double charges in electricity bills

MANILA, Philippines — The Energy Regulatory Commission (ERC) has issued new rules to protect electricity consumers against double charging.

In Resolution No. 30, Series of 2026, it imposed uniform rates on “Other Charges” that distribution utilities (DUs) may collect from customers.

According to the ERC, “Other Charges” may generally be imposed only for specific customer-requested or account-related activities that create additional costs for DUs, such as certain connection, disconnection and reconnection services.

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It said that aside from ensuring a notice of disconnection is properly served, the late payment fee slapped on consumers should not exceed two percent of the current month’s bill or the unpaid amount, whichever is lower. The fee should be presented as a separate line item and must be charged only once per bill.

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Charging these extra costs, however, would still need approval from regulators.

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In addition, the regulatory body said that costs recovered through ERC-approved distribution, supply and metering rates cannot be collected again under “Other Charges.”

The resolution also limits the charges to specific components such as direct labor, deployment and fuel, and replacement materials used for the service.

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90 days for adjustments

The ERC likewise barred utility firms from including administrative and overhead expenses under “Other Charges” since they are already factored into the approved rates.

DUs have 90 days to make the necessary adjustments, particularly on their billing systems, IT infrastructure and accounting records.

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“With uniform and transparent Other Charges, consumers will have a clearer basis for understanding what they are being charged and why. DUs may recover legitimate costs for specific services, but consumers should not be made to pay twice for costs already covered by their electricity rates,” ERC Chair and CEO Francis Saturnino Juan said on Tuesday.

“This is part of the ERC’s continuing effort to ensure fair, transparent, and accountable electricity service,” he added. /cb