The Energy Regulatory Commission (ERC) is preparing to update the Time-of-Use (TOU) pricing scheme, marking the first revision in almost 20 years. ERC Chairperson Monalisa Dimalanta said they will consults with industry stakeholders, including the Philippine Energy Efficiency Alliance (PE2).
Speaking at the Energy Efficiency Day 2025 forum in Pasay City, Dimalanta acknowledged that the current TOU rates, designed to set higher charges during peak hours and lower charges during off-peak periods, are outdated. The scheme was originally implemented to encourage consumers to shift their electricity use to times when demand and prices are lower.
“The least we can do is update the rates. I think it’s just been updated once. So we need to update the rates, even NPC, it’s really hard for them to survive with those rates. So that’s the least we can do,” she said.
Dimalanta emphasized that the revision should go beyond just updating rates. “Let’s not just update the rates, but maybe we can change the framework so that we can really push for more demand-side management solutions so that is more effective and really make our consumer change behavior and change consumption patterns because it will make economic sense,” she said.
By making the TOU pricing scheme more adaptive, the ERC hopes to create a more responsive system that encourages users to adjust their power consumption according to supply and demand.
Dimalanta also addressed concerns about the summer energy supply. She assured that the Department of Energy (DOE) is working with power generators to manage maintenance schedules to avoid supply issues. The ERC is also expediting the approval of power supply agreements to protect consumers from potential price spikes in the Wholesale Electricity Spot Market (WESM).
On the topic of Retail Competition and Open Access (RCOA), Dimalanta announced that the ERC plans to lower the threshold from 500 kW to 100 kW, allowing more consumers to select their electricity suppliers. A roadmap for this transition is expected within the first half of the year.
Dimalanta also shared insights on the Retail Aggregation Program (RAP), which aims to let consumers buy electricity collectively for better rates. She said the program has seen strong interest, indicating that consumers are looking for more flexible and competitive energy options.
What do you think about the planned update to TOU pricing? Let us know in the comments!
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