The Energy Regulatory Commission (ERC) has approved Resolution No. 22, Series of 2026, standardizing how Distribution Utilities (DUs) compute, monitor, and report transmission and ancillary service charges.

The resolution adopts a Uniform Reportorial Requirements (URR) Template Addendum, which is intended to strengthen transparency, accountability, and regulatory oversight of transmission-related pass-through costs reflected in electricity bills.

Beginning with the first billing cycle after July 16, 2026, DUs will use a uniform reporting template and computation guidelines for transmission and ancillary service charges.

The framework also establishes standardized validation and true-up procedures while the ERC finalizes its revised Over/Under Recovery Rules.

The ERC clarified that the measure does not impose new or additional charges on consumers. Instead, it provides a clearer and more consistent way of computing, reporting, and monitoring existing transmission-related pass-through costs.

For consumers, the development is meant to make electricity bills easier to verify and understand. It also gives the ERC a stronger basis to check whether only legitimate, properly documented, and reasonable costs are being passed on through monthly bills.

The resolution also complements Resolution No. 4, Series of 2026, which requires ancillary service charges to be presented separately in electricity bills to improve transparency.

“Consumers deserve to know what they are paying for. Resolution No. 22 strengthens transparency by ensuring that Transmission and Ancillary Services charges are computed, reported, and verified using uniform standards,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

“This is not about adding new charges—it is about making sure that only legitimate, properly documented, and reasonable costs are recovered, ultimately protecting consumers,” he added.

Ancillary services are support services that help keep the power grid stable and reliable, especially during sudden changes in electricity demand or unexpected power plant or transmission outages.

The new reporting framework allows the ERC to more effectively verify these costs and ensure that only prudent and reasonable charges are passed on to consumers.

The ERC said the measure also benefits the energy sector by giving DUs a single reporting standard, improving regulatory compliance, reducing inconsistencies in submissions, and streamlining the commission’s review process.

It added that Resolution No. 22 supports consumer protection and fair, transparent, and accountable electricity pricing under the Electric Power Industry Reform Act (EPIRA).

Can standardized reporting help consumers better understand the pass-through charges reflected in their electricity bills?

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