Manila: Electricity rates are set to ease in the next billing cycle as the Energy Regulatory Commission (ERC) accelerates refunds and rolls out regulatory measures to cushion consumers from recent increases in power costs. At the Senate's Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee hearing on Wednesday, ERC chairperson Francis Saturnino Juan said the faster implementation of a multibillion-peso refund, arising from previously over-recovered charges and regulatory adjustments, will help bring down electricity rates.

According to Philippines News Agency, Juan stated that the refunds would lead to an approximate 20 centavos reduction in rates. Additionally, the ERC is reviewing regulatory thresholds and coordinating with industry players to potentially implement staggered adjustments, aiming to moderate the impact of future rate movements. Recent electricity bill increases were primarily due to higher generation charges, which constitute the largest component of power rates.

Senator Sherwin Gatchalian, chair of the PROTECT Committee, emphasized the importance of early regulatory intervention to prevent unexpected bill increases. He pointed out that subsidy-related charges, such as the lifeline rate, have minimal impact on overall electricity costs, accounting for only about one centavo per kilowatt-hour.

Juan further explained that increases in generation charges can affect other bill components, including transmission and value-added tax, as these are calculated based on total electricity costs. He highlighted the necessity of charges like ancillary services and system loss to maintain a stable and reliable power supply.

Other senators also proposed reviewing tax components and other charges to further alleviate the financial burden on consumers.