BUSINESS
Advocates Philippines
ERC Extends Green Energy Charge Suspension, Keeping Power Bills Lower Through August
FILE
Filipino electricity consumers will continue to enjoy lower power bills for two more months after the Energy Regulatory Commission (ERC) extended the suspension of the Green Energy Auction Allowance (GEA-All) collection for the July and August 2026 billing periods.
The ERC announced the extension on Monday, saying the move is intended to provide additional relief to electricity consumers while ensuring that payments to renewable energy suppliers remain uninterrupted.
The GEA-All is a uniform pass-through charge collected from electricity consumers to compensate renewable energy suppliers participating in the government's Green Energy Auction Program (GEAP). The program, implemented under the Renewable Energy Act of 2008, seeks to encourage investment in solar, wind, hydro, and other renewable energy projects while reducing the country's dependence on fossil fuels.
Under the latest advisory, the P0.0371 per kilowatt-hour (kWh) GEA-All charge will remain suspended throughout the July and August 2026 billing periods. The suspension applies to all collection agents, including distribution utilities, retail electricity suppliers, and the National Grid Corporation of the Philippines (NGCP).
According to the ERC, the extension was approved after confirming that the GEA-All Fund remains financially stable despite the temporary suspension of collections. As of June 5, 2026, the fund had an available balance of approximately P707.47 million, which regulators said is sufficient to cover payment obligations to qualified renewable energy suppliers, including projects expected to begin commercial operations in the coming months.
The Commission said the decision reflects its effort to balance consumer protection with the continued implementation of the country's renewable energy program. While electricity consumers will temporarily be exempt from paying the additional charge, qualified renewable energy suppliers will continue receiving payments from the existing GEA-All Fund balance.
Launched by the Department of Energy in 2022, the Green Energy Auction Program has awarded thousands of megawatts of renewable energy capacity through competitive bidding. The initiative supports the government's goal of increasing the share of renewable energy in the country's power generation mix to 35 percent by 2030 and 50 percent by 2040.
The ERC said it will continue monitoring the financial condition of the GEA-All Fund and conduct another assessment in August to determine whether the suspension can be extended beyond the current billing period.
Meanwhile, all distribution utilities, retail electricity suppliers, and the NGCP have been directed to implement the suspension beginning with the July billing cycle and submit compliance reports, including sample customer bills reflecting the removal of the GEA-All charge, within 15 days after the close of the August billing period.
The Commission also warned that collection agents that fail to comply with the advisory may face a Show Cause Order and possible administrative sanctions under existing laws and ERC regulations.
The extension is expected to provide temporary relief to electricity consumers while allowing the government to continue supporting the development of renewable energy projects through the existing GEA-All Fund.
The ERC announced the extension on Monday, saying the move is intended to provide additional relief to electricity consumers while ensuring that payments to renewable energy suppliers remain uninterrupted.
The GEA-All is a uniform pass-through charge collected from electricity consumers to compensate renewable energy suppliers participating in the government's Green Energy Auction Program (GEAP). The program, implemented under the Renewable Energy Act of 2008, seeks to encourage investment in solar, wind, hydro, and other renewable energy projects while reducing the country's dependence on fossil fuels.
Under the latest advisory, the P0.0371 per kilowatt-hour (kWh) GEA-All charge will remain suspended throughout the July and August 2026 billing periods. The suspension applies to all collection agents, including distribution utilities, retail electricity suppliers, and the National Grid Corporation of the Philippines (NGCP).
According to the ERC, the extension was approved after confirming that the GEA-All Fund remains financially stable despite the temporary suspension of collections. As of June 5, 2026, the fund had an available balance of approximately P707.47 million, which regulators said is sufficient to cover payment obligations to qualified renewable energy suppliers, including projects expected to begin commercial operations in the coming months.
The Commission said the decision reflects its effort to balance consumer protection with the continued implementation of the country's renewable energy program. While electricity consumers will temporarily be exempt from paying the additional charge, qualified renewable energy suppliers will continue receiving payments from the existing GEA-All Fund balance.
Launched by the Department of Energy in 2022, the Green Energy Auction Program has awarded thousands of megawatts of renewable energy capacity through competitive bidding. The initiative supports the government's goal of increasing the share of renewable energy in the country's power generation mix to 35 percent by 2030 and 50 percent by 2040.
The ERC said it will continue monitoring the financial condition of the GEA-All Fund and conduct another assessment in August to determine whether the suspension can be extended beyond the current billing period.
Meanwhile, all distribution utilities, retail electricity suppliers, and the NGCP have been directed to implement the suspension beginning with the July billing cycle and submit compliance reports, including sample customer bills reflecting the removal of the GEA-All charge, within 15 days after the close of the August billing period.
The Commission also warned that collection agents that fail to comply with the advisory may face a Show Cause Order and possible administrative sanctions under existing laws and ERC regulations.
The extension is expected to provide temporary relief to electricity consumers while allowing the government to continue supporting the development of renewable energy projects through the existing GEA-All Fund.
Jun 29, 2026
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