The Energy Regulatory Commission (ERC) has approved new rules allowing entities other than the national transmission network provider, which is currently the National Grid Corporation of the Philippines (NGCP), to finance and construct certain transmission projects.

The ERC said the new framework is intended to accelerate the completion of critical transmission facilities needed to connect new power plants to the national grid and deliver electricity to consumers more quickly and reliably.

Issued under ERC Resolution No. 18, Series of 2026, the rules cover the development, ownership, and operation of Point-to-Point Limited Transmission Facilities, as well as the financing and construction of transmission projects by entities other than NGCP.

These projects may include new transmission lines, substations, switchyards, and other facilities needed to accommodate additional generation capacity and strengthen the country’s transmission network.

Under the framework, qualified generation companies may finance and construct Associated Transmission Projects identified by the Department of Energy. The National Transmission Corporation may also undertake Priority Projects or engage other government agencies, government-owned or -controlled corporations, or private entities to construct them on its behalf.

The ERC said transmission delays often prevent new power plants, including renewable energy projects, from delivering their full capacity to the grid.

In simple terms, even when a power plant is ready to generate electricity, delayed transmission facilities can keep that power from reaching consumers.

“Reliable and adequate transmission infrastructure is essential to ensuring that electricity generated by new power plants actually reaches Filipino homes and businesses,” said ERC Chairperson and CEO Atty. Francis Saturnino C. Juan.

Juan said the implementing rules provide a clear regulatory pathway to help complete critical transmission projects faster while maintaining transparency, accountability, and consumer protection.

“For consumers, this means helping bring more power supply into the grid, reducing bottlenecks, supporting the integration of renewable energy, and ultimately contributing to a more secure, reliable, and affordable electricity system,” Juan said.

He added that the ERC will continue to conduct prudency reviews and allow only just and reasonable costs to be recovered and passed on to consumers.

The new rules also establish conditions for project approvals, construction timelines, turnover of facilities to the Transmission Network Provider, and recovery of project costs.

The ERC said it will retain authority to review and determine the fair and reasonable value of transmission projects before any cost recovery mechanism may be implemented.

The regulator said the rules support the government’s broader goals of strengthening energy security, accelerating the energy transition, and ensuring the timely integration of new generation capacity needed to meet growing electricity demand.

As new power projects enter the pipeline, can the ERC’s new transmission rules help reduce grid bottlenecks and accelerate the delivery of additional supply to Filipino consumers?

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