MANILA — Consumers laud the Energy Regulatory Commission’s (ERC) decision to suspend the collection of charges related to renewable energy projects for the next two months.
"Kami ay natutuwa sa two-month suspension ng koleksyon ng GEA-All dahil ito ay makakatulong kahit paano'y maibsan ang mataas na presyo,” says Bas Umali, National Coordinator for consumer welfare group Kuryente.org.
Translation: We are pleased with the two-month suspension of the collection of the GEA-All because this will help lower the high price of electricity.
The ERC's decision to suspend the Green Energy Auction Allowance (GEA-All) for the May and June 2026 billing period comes just three days after consumer welfare group Kuryente.org filed a petition urging the agency to hold off the GEA-All, as well as the Feed-in Tariff Allowance (FIT-All), while the country is under a state of emergency due to the energy crisis.
The ERC earlier imposed the GEA-All to finance the country’s renewable energy projects (solar, wind, hydro) under the Green Energy Auction Program (GEAP) as an additional charge of ₱0.0371 per kilowatt hour (kWh). Meanwhile, the FIT-All tariff is another charge of ₱0.2011 per kWh to pay renewable energy producers.
Umali says, while the decision is a good move on the part of the government, there are still measures that leaders can take to further ease the financial burden of electricity consumers. He says lawmakers should also remove the 12% Value-added Tax (VAT) charge.
“Ang pagbabawas ng iba pang bayarin kagaya ng VAT ay long-term solution na dapat i-prayoridad ng legislative body,” adds Umali.
(The removal of other charges such as the VAT will be a long-term solution that the legislative body should prioritize.) PR
