0 Comments
Table of Contents
Starting January 2026, electricity consumers across the Philippines will see an additional charge on their bills designed to support the expansion of renewable energy (RE) projects nationwide.
The Energy Regulatory Commission (ERC) announced the collection of the Green Energy Auction Allowance, or GEA-All, which will appear as a separate line item at a rate of ₱0.0371 per kilowatt-hour. While the new fee may initially seem like a burden for households and businesses, ERC officials stressed that it is intended to attract more investors and encourage the construction of new power plants to meet rising demand.
The measure is part of a broader effort to secure the country’s energy future by funding RE projects, including solar, wind, biomass, hydro, and integrated facilities with battery storage. These projects, awarded through the government’s Green Energy Auction program, have secured long-term contracts that guarantee stable revenue for power producers and aim to ensure continuous, clean electricity for consumers.
(Also read: Bishops Sound Alarm Over Proposed Pangasinan Nuclear Plant)
Supporting RE Growth
ERC Chairperson and CEO Francis Saturnino Juan explained that the GEA-All charge is critical to sustaining investment in the power sector. “Kailangan na ma-sustain natin iyong pagkakaroon ng mga karagdagang puhunan dito sa ating power sector dahil pataas nang pataas iyong ating demand so kailangan talaga na mayroong cost recovery para doon sa mamumuhunan para tuluy-tuloy ang pagtatayo ng mga bagong planta,” Juan said (We need to sustain additional investment in our power sector as demand continues to rise, so cost recovery is essential to encourage investors to continue building new plants).
.
ERC has instructed distribution utilities, the National Grid Corporation of the Philippines (NGCP), and retail electricity suppliers to collect the fee from their respective customers and remit the proceeds in full to the GEA-All Fund by the 15th day of the month following each billing period. The agency has also mandated transparency and audit readiness to ensure proper management of the collected funds.
Integration with Existing Renewable Charges
The GEA-All will be added to the existing Feed-in Tariff Allowance (FIT-All), which covers payments to eligible RE plants such as small hydro, wind, and solar installations. For 2026, the ERC set the FIT-All rate at ₱0.2011 per kilowatt-hour, a slight reduction from the current rate. ERC officials noted that this marks the first time the FIT-All rate has been determined before the year it takes effect, demonstrating a more proactive and predictable regulatory approach.
“So, the ones collecting this are the [distribution utilities] from their captive customers, the NGCP from their directly connected customers, and the electricity suppliers from the contestable customers—so all collections are remitted to TransCo, the administrator of the fund. And TransCo pays the eligible GEA developers for their electricity generation,” ERC Director for Market Operations Sharon Montaner explained. This system ensures that RE developers are compensated promptly, helping maintain investor confidence in clean energy projects.
(Also read: Vena Energy’s Ilocos Norte Solar Farm to Light Up 445,000 Homes by 2026)
Encouraging Investment and Energy Security
The ERC emphasized that the additional charges are not merely a financial burden but a mechanism to expand the country’s energy supply. By funding new RE projects, the program aims to meet growing electricity demand while reducing reliance on imported fossil fuels. The fees also help create a predictable and stable revenue stream for investors, enabling them to plan and construct new facilities confidently.
With these measures, the ERC and the DOE hope to strengthen the resilience of the nation’s power system and accelerate the adoption of RE sources, ultimately providing more sustainable and affordable electricity for all.
As households and businesses begin paying the new GEA-All fee alongside the adjusted FIT-All rate in early 2026, these initiatives are expected to catalyze long-term growth in the RE sector, positioning the Philippines as a leader in clean energy development in the region.
Sources:
https://www.pna.gov.ph/articles/1265519
https://www.philstar.com/business/2025/12/14/2494006/new-re-charges-hit-power-bills-2026
https://business.inquirer.net/564081/consumers-to-pay-extra-for-renewable-energy