The Energy Regulatory Commission (ERC) has adopted new rules establishing a framework for computing transmission, system operation, and metering charges in off-grid areas, aiming to improve electricity service in remote and underserved communities.

Issued through ERC Resolution No. 19, Series of 2026, the rules create what the Commission described as the first clear and transparent framework for determining off-grid transmission wheeling and system operation charges in small grids that are not connected to the main grid.

The rules set the methodology for computing rates for transmission network services, system operation, and metering services in off-grid areas.

These charges cover the cost of moving electricity through off-grid systems, managing those systems, and measuring electricity use.

The ERC said the framework is intended to support the development and operation of small grids in missionary and off-grid areas, where electricity services are often affected by geographic isolation, limited infrastructure, and high operating costs.

The rules also provide regulatory guidance for entities authorized to provide off-grid transmission services, including the National Transmission Corporation in its role as Small Grid System Operator in identified off-grid configurations.

“This resolution is a significant step toward ensuring that Filipinos living in islands and remote communities are not left behind in our energy transition,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

Juan said the framework is expected to encourage investments in small-grid infrastructure, strengthen accountability, and create the conditions for more reliable and efficient electricity service.

“Ultimately, these reforms are designed to benefit consumers by improving service quality, promoting cost transparency, and supporting the long-term reduction of power costs in off-grid areas,” he said.

The ERC said the new framework also promotes greater service reliability, enhanced transparency and accountability in electricity pricing and billing, and improved operational efficiency in off-grid power systems.

The Commission said these measures are intended to support sustainable electricity delivery, facilitate socioeconomic development, and contribute to improved living standards in underserved and geographically isolated areas.

While the new rules do not immediately guarantee lower rates, they create a clearer regulatory structure for improving off-grid electricity pricing, accountability, and reliability.

How can clearer off-grid power rules help improve electricity service for remote and island communities?

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