The Energy Regulatory Commission (ERC) has directed all private distribution utilities (PDUs) to file their respective actual weighted average tariff (AWAT) applications to cover the lapsed period when the agency could not conduct a rate reset.
In Resolution No. 23, Series of 2025, the ERC resolved to adopt a confirmation and “true-up” process to determine the rate of the PDUs and address the period when rate reviews were delayed for the respective entry groups.
ERC chairperson Francis Saturnino Juan said the new ERC “has cut the Gordian knot.”
“After more than a decade of delays in reviewing the rates of privately-owned distribution utilities, ERC now have both a clear roadmap and the unwavering determination to see this through,” he said.
The ERC recently published the rationalized rules for setting distribution wheeling rates for privately owned electricity distribution utilities operating under performance-based regulation (RRDWR) under ERC Case No. 2025-011 RM. The RRDWR defines new entry groups for the PDUs and establishes the first regulatory period.
The first entry hroup includes Cagayan Electric Power & Light Co. Inc., Cotabato Light & Power Co. Inc., Dagupan Electric Corp. and Manila Electric Co. Their first regulatory period is July 1, 2026 to June 30, 2030.
The second entry group includes Clark Electric Distribution Co., Davao Light & Power Co. Inc., Iligan Light & Power Company Inc., Mactan Electric Co., Olongapo Electricity Distribution Co. and Shin Clark Power Corp. Their first regulatory period is Jan. 1, 2027 to Dec. 31, 2030.
The third entry group is composed of Cabanatuan Electric Corp., Ibaan Electric and Engineering Corp., La Union Electric Company Inc., Tarlac Electric Inc., Visayan Electric Co. and First Bay Power Corp. Their first regulatory period is July 1, 2027 to June 30, 2031.
The fourth entry group includes Angeles Electric Corp., Bohol Light Co. Inc., MORE Electric and Power Corp., Subic Enerzone Corp., San Fernando Electric Light & Power Co. Inc. and Negros Electric Power Corp. Their first regulatory period is Jan. 1, 2028 to Dec. 31, 2031.
The RRDWR prescribes the rationalized methodology for setting the maximum distribution wheeling rates that may be charged for the provision of regulated distribution services by PDUs operating under performance-based regulation.
 orders private distribution utilities (PDUs) to file Actual Weighted Average Tariff (AWAT) applications to adjust rates for a decade-long lapsed period, implementing a new confirmation and true-up process under its Rationalized Rules for Setting Distribution Wheeling Rates.){kind=link}