ERC suspends grid charges for power sourced from battery storage during energy emergencies

The Energy Regulatory Commission (ERC) is suspending grid charges on power tapped from energy storage facilities during energy emergencies.

In a statement on Wednesday, the ERC announced it issued a new resolution on the temporary suspension of Power Delivery Service (PDS) charges for Energy Storage Systems (ESS)— such as giant batteries and pumped-hydro plants—during declared national energy emergencies.

The power industry regulator said the move is designed to make sure these massive storage facilities can pull power from the grid, save it, and feed it back to consumers when supply gets dangerously low, without being penalized by extra delivery fees.

“This is a calibrated and time-bound measure to remove disincentives to the use of energy storage systems when they are most needed,” said ERC Chairperson and CEO Francis Saturnino Juan.

“Our goal is to support grid reliability and energy security while upholding fairness, transparency, and consumer protection,” said Juan.

The ERC noted the suspension only applies to "Qualified ESS Storage Intake Energy"—meaning the electricity used specifically to charge batteries or pump water up into storage reservoirs for later grid support.

It added that any electricity used to run the facility's offices or for regular final consumption will still be charged normal transmission rates.

Moreover, the regulator said that other standard fees also remain in place “to protect the market from distortions.”

To ensure that the latest policy will not be abused, the ERC is keeping a close watch on the following:

• Fast-tracked registration: Storage facilities must register with the National Grid Corporation of the Philippines (NGCP), which has to process complete applications within five working days.
• Strict metering: Facilities must use separate meters or verifiable measuring tools so the ERC can track exactly how much energy is being stored versus consumed.
• Guidelines incoming: The NGCP has 15 days to submit detailed rules on how this registration, billing, and verification process will work.

The ERC said the temporary measure is a bid to build a stronger, more resilient energy grid during times of crisis.

“This reform allows energy storage to be used more effectively in times of need, helping stabilize supply and ultimately protect consumers from volatility,” said Juan. —RF, GMA News