The Energy Regulatory Commission (ERC) has approved Resolution No. 21, Series of 2026, updating the entry groups for privately owned distribution utilities implementing Performance-Based Regulation (PBR).

The resolution amends the entry groups under the Rationalized Rules for Setting the Distribution Wheeling Rates (RRDWR), which govern the rate reset process for privately owned distribution utilities.

The ERC said the adjustment will better align the timing of distribution utility rate reset applications with the operational circumstances of affected utilities, while keeping the regulatory process orderly and efficient.

Under the resolution, Subic Enerzone Corporation (SEZ) was transferred to the Third Entry Group.

Visayan Electric Company (VECO) and Shin Clark Power Corporation (SCPC) were transferred to the Fourth Entry Group, while the remaining distribution utilities will keep their original schedules.

Entry groups determine when privately owned distribution utilities must file their applications for the periodic review of distribution wheeling rates.

Distribution wheeling rates are charges for the use of the local distribution network that delivers electricity to customers.

By staggering these filings, the ERC said the process gives utilities greater certainty in planning long-term capital investments, network upgrades, and service improvement programs.

The staggered schedule also gives the commission sufficient time to review complete and accurate submissions.

“Performance-Based Regulation is designed to enable distribution utilities to provide safe, reliable, and quality electricity service while ensuring that consumers pay only for prudent, reasonable, and efficient costs,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

Juan said adjusting the entry groups based on the circumstances of affected utilities strengthens the integrity of the rate reset process without compromising consumer protection.

He added that the change allows the ERC to conduct more thorough evaluations while giving utilities enough time to plan and implement necessary investments.

For consumers, the ERC said the measure reinforces its commitment to ensuring that electricity distribution charges remain transparent, evidence-based, and reflective only of prudent, efficient, and reasonable expenditures.

The commission said the policy also supports continued investment in distribution system modernization, service reliability, outage reduction, and improved customer service.

The ERC added that strict regulatory oversight and accountability will remain in place to help ensure that distribution utilities invest in and operate their networks in the most efficient and least-cost manner.

Can a more orderly rate reset process help ensure distribution charges remain fair, transparent, and tied to efficient service delivery?

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