Newly-appointed Energy Regulatory Commission (ERC) chairperson and chief executive Francis Saturnino Juan on Friday announced proposals for the regulatory body, focusing on five key areas to address regulatory backlog and streamline processes.
Juan, who has received strong support from the energy industry, welcomed the trust and confidence shown by President Ferdinand Marcos Jr. in appointing him to head the ERC, the agency responsible for promoting the interests of all electricity consumers.
Juan replaces Monalisa Dimalanta, whose irrevocable resignation is effective Aug. 8, 2025. Malacanang also appointed two commissioners, Amante Liberato and Paris Real, a move that eases industry concerns of a regulatory vacuum.
Juan proposed a review of the continued use of the performance-based rate-setting methodology for private distribution utilities. This review comes in light of recent developments in jurisprudence and experience from previous rate-reset proceedings involving Manila Electric Co.
Juan also proposed to revisit the ERC’s current approach to reviewing and approving power supply agreements that have already undergone a rigorous and stringent competitive selection process. He stated the review aims to “streamlin[e] and fast track[] the approval process… and ensure the timely entry of new generation capacities to support the country’s ever increasing electricity demand.”
He also proposed to “review the current yardstick regulation used for setting the on-grid electric cooperatives’ rates and allow for their individual filing of rate applications to allow the distressed ECs [electric cooperatives] to earn sufficient revenues to allow for them to continue providing quality distribution services to their members-consumers.”
He raised the possibility of allowing utilities, including National Grid Corp. of the Philippines, to begin implementing proposed capital expenditure projects “without being subject to imposition of administrative penalties, after three months from submission for resolution of their CAPEX applications.”
Juan also plans to propose that the commission consider deeming all certificate of compliance applications with complete documentary support as approved 30 days after filing.
“All these are my initial thoughts, to address the backlog at ERC, to streamline processes, to simplify requirements, and to come up with timely and sensible decisions and regulatory actions – all to promote consumer interests by ensuring more investments in additional capacities, both in generation and transmission/distribution sectors at competitive or well-regulated and reasonable tariffs,” Juan said.
He said he would consult the other members of the commission about these proposals and together, “we will consult all stakeholders and thereafter decide as one collegial body.”
