ERC Adopts Alternative Dispute Resolution Policy to Expedite Consumer Complaints

The Energy Regulatory Commission (ERC) has institutionalized the Alternative Dispute Resolution (ADR) Policy and Manual through Resolution No. 5, Series of 2025, reinforcing its commitment to consumer protection and regulatory efficiency. The new policy provides a faster, cost-effective, and impartial process for resolving disputes between consumers and regulated energy entities, reducing the need for prolonged legal proceedings.

The ADR Policy institutionalizes negotiation, mediation, conciliation, arbitration, and expert evaluation as preferred methods for settling disputes outside traditional courtroom litigation. The ERC aims to streamline energy sector conflict resolution, ensuring faster case resolutions while reducing court backlogs and legal expenses.

ERC Chairperson and CEO Monalisa C. Dimalanta emphasized the significance of this policy in enhancing regulatory processes. She said the Commission actively encourages and promotes ADR as a means to expedite conflict resolution between regulated entities and consumers. With the institutionalization of the ADR Policy, the ERC is providing consumers and regulated entities with a more efficient avenue for resolving disputes.

This move aligns with Republic Act No. 9285, or the Alternative Dispute Resolution Act of 2004, which mandates government agencies to promote ADR mechanisms as part of their administrative and regulatory functions. By implementing ADR, the ERC aims to provide quicker resolutions to consumer complaints, reducing reliance on court litigation, which can be time-consuming and costly. The new policy will also complement the ERC’s existing Revised Rules of Practice and Procedure (RRPP) on consumer complaints, with plans to expand ADR provisions to improve overall dispute resolution mechanisms.

The ADR Policy seeks to reduce processing time for consumer complaints and regulatory disputes. It aims to minimize legal costs for both consumers and energy providers. It enhances stakeholder confidence in ERC’s dispute resolution process and provides an impartial and structured method for resolving conflicts efficiently.

As part of its regulatory function, the ERC regularly handles disputes between electric cooperatives, distribution utilities, and consumers, covering billing disputes, power supply issues, and service-related complaints. With the institutionalization of ADR, stakeholders will have a structured mechanism for resolving conflicts without resorting to litigation. The ERC sees ADR as a practical solution to maintain fair and transparent resolutions while allowing consumers and energy providers to avoid prolonged delays and expensive legal processes.

Dimalanta added that the institutionalization of ADR emphasizes the ERC’s efforts to foster a regulatory environment where conflicts are addressed fairly and expeditiously, ultimately strengthening consumer protection and stakeholder confidence in the energy sector.

With the growing complexity of the energy sector, the ERC recognizes the need for modern, responsive dispute resolution mechanisms. The ADR Policy aims to empower consumers by providing accessible options for resolving complaints without formal court proceedings. By simplifying and expediting dispute resolution, the ERC strengthens its role in upholding consumer rights and ensuring fair energy sector practices. The institutionalization of ADR represents a crucial step toward regulatory modernization, benefiting both consumers and energy providers.

What are your thoughts on the ERC’s Alternative Dispute Resolution Policy? Do you think it will improve the resolution of consumer complaints in the energy sector? Share your insights in the comments below and follow Power Philippines for updates on energy regulations and policies.