The Energy Regulatory Commission (ERC) has issued an advisory directing distribution utilities (DUs) in areas placed under a State of Calamity due to Severe Tropical Storm Crising, Tropical Storm Dante, Typhoon Emong, and the enhanced Southwest Monsoon to suspend electricity disconnections for residential and non-residential consumers in their captive market.

The suspension applies to bills covering the period 19 July to 31 August 2025. DUs in the affected areas are instructed to offer flexible payment schemes to ease the financial burden on consumers recovering from the storms and monsoon.

Under the advisory, consumers with monthly consumption not exceeding 100 kilowatt-hours are allowed to defer payment of their electricity bills for the covered period and settle them on a staggered basis over a period of less than three months from the receipt of the bill.

The ERC also directed that generators, the Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation (NPC), National Transmission Corporation (TRANSCO), National Grid Corporation of the Philippines (NGCP), Independent Power Producers (IPPs), Independent Power Producer Administrators (IPPAs), and the Market Operator (MO) apply the same staggered payment arrangement to DUs, proportionate to collections from affected consumers.

“Nothing in this Advisory shall preclude a consumer from paying his or her electric bills for the Covered Billing Period. Thus, consumers, who are able to pay their electric bills, are urged to pay the same,” the ERC stated.

What impact will this payment relief have on cash flow and operations for DUs and generation companies in affected regions?

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