The Energy Regulatory Commission (ERC) has adopted a resolution temporarily suspending Power Delivery Service (PDS) charges for qualified Energy Storage Systems (ESS) during declared national energy emergencies.

The measure applies to electricity drawn from the grid solely for storage and later reinjection to support grid operations, particularly during periods of supply constraints.

In simple terms, the ERC is distinguishing between electricity used for final consumption and electricity temporarily absorbed by storage facilities, such as batteries or pumped-hydro systems, before being returned to the grid.

“This is a calibrated and time-bound measure to remove disincentives to the use of energy storage systems when they are most needed,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

“Our goal is to support grid reliability and energy security while upholding fairness, transparency, and consumer protection,” he added.

The ERC said the suspension applies only to Qualified ESS Storage Intake Energy, which covers electricity withdrawn for storage activities such as battery charging, pumped-hydro operations, and similar technologies intended for grid support or reinjection.

Electricity used for final consumption will remain subject to regular transmission charges.

Other applicable fees are also not covered by the suspension, which the ERC said is meant to preserve cost recovery mechanisms and avoid market distortions.

ESS facilities seeking to avail of the measure must register with the National Grid Corporation of the Philippines (NGCP), which is required to process complete applications within five working days.

The ERC also requires separate metering or other verifiable means of measuring qualified storage intake energy to ensure that only eligible volumes benefit from the suspension.

NGCP has been directed to submit detailed implementing guidelines within 15 days from the resolution’s effectivity, covering procedures for registration, billing, metering, and verification.

The ERC said it will maintain full oversight to ensure transparency, accountability, and consumer protection while implementing the temporary measure as part of broader efforts to strengthen energy resilience during emergency conditions.

“This reform allows energy storage to be used more effectively in times of need, helping stabilize supply and ultimately protect consumers from volatility,” Juan said.

Can temporary grid charge relief help energy storage respond faster during future power supply emergencies?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.