ERC Resolution No. 04, Series of 2026 – Supplemental Guidelines on Transmission and Ancillary Services Charge Recovery
ERC issued supplemental guidelines requiring separate billing and enhanced verification of Ancillary Services charges to improve transparency and regulatory oversight, without introducing new costs to consumers.
1/30/20262 min read
SUMMARY
WHAT IT IS
This Resolution adopts supplemental guidelines to clarify and enhance the adjustment, billing, and recovery of Ancillary Services (AS) charges by Distribution Utilities (DUs), supplementing ERC Resolution No. 14, Series of 2022, to improve transparency, regulatory oversight, and consumer protection.
Distribution Utilities (DUs)
National Grid Corporation of the Philippines (NGCP)
Transmission Network Provider (TNP)
System Operator (SO)
End-users/Consumers
WHO IS AFFECTED
KEY DEADLINES
90-day transitory period from effectivity for full compliance by NGCP and DUs.
TAKEAWAY
DUs and NGCP must update billing systems and reporting processes to separately reflect and document AS Charges within 90 days of effectivity.
Consumers will see AS Charges as a distinct line item, but these are not new or additional charges.
KEY POINTS
Scope: Applies to the adjustment and recovery of Transmission and Ancillary Services (AS) Charges by Distribution Utilities (DUs) under ERC Resolution No. 14, Series of 2022.
Covered Entities: National Grid Corporation of the Philippines (NGCP), Distribution Utilities (DUs), Transmission Network Provider (TNP), System Operator (SO), and other regulated entities.
Requirements: DUs must separately calculate, bill, and present AS Charges as a distinct line item in customer bills, including only the Total Ancillary Services Charge and corresponding VAT.
Thresholds: No new or additional charges are imposed; only existing transmission-related pass-through costs are subject to these guidelines.
Compliance Obligations: Regulated entities must submit all relevant data and supporting documents for AS cost computation and validation, including sworn statements, breakdowns of AS costs, Reserve Market data, and reconciliation summaries.
Mechanisms Introduced/Amended: Adoption of an Ancillary Services Charge Rate (ASCR) Adjustment Formula, with over/under recovery, verification, and true-up mechanisms consistent with ERC Resolution No. 14, Series of 2022.
Reportorial Requirements: Monthly submission of supporting information and documents coinciding with existing reportorial requirements under ERC Resolution No. 14, Series of 2022.
Consumer Communication: TNP, SO, and DUs must develop and implement a Consumer Communication and Disclosure Plan to inform customers about the separate AS Charges line item.
Deadlines: A transitory period of ninety (90) days from effectivity is granted for NGCP and DUs to comply; full compliance is mandatory after this period.
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ERC Resolution No. 04, Series of 2026
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
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Tags: Ancillary Services, Billing Transparency, Distribution Utilities, AS Charge Adjustment, Compliance Reporting, Consumer Disclosure