Senator Win Gatchalian is pushing to update the penalties that the Energy Regulatory Commission (ERC) can impose on transmission operators, distribution utilities (DUs), and generation companies (GenCos), saying this is crucial to lowering the country’s high electricity prices.

“If we have a strong regulator, bababa ang presyo ng kuryente,” Gatchalian said during a Senate Committee on Energy hearing on his proposed measure to strengthen the ERC’s governance structure.

A case in point was when the ERC imposed only ₱15 million in penalties for 34 delayed projects of the National Grid Corporation of the Philippines in 2024. “The net profit of NGCP then was about ₱17 billion, while dividends declared to shareholders amounted to ₱3.6 billion. Obviously, the penalty is not commensurate with the size of the transmission operator,” he stressed.

 “Kapag may delay, may banta ng brownout at mas mahal ang kuryente dahil wala tayong ibang mapuntahan kundi ‘yung transmission na kaisa-isa,” he warned.

Under the Electric Power Industry Reform Act (EPIRA), the ERC can impose a maximum penalty of only ₱50 million per offense. Gatchalian’s proposal will allow ERC to increase higher penalties, and a portion of the penalties can be used to lower power rates.