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Forward power contracting eyed to avoid bill shock
The Philippine Star
|January 28, 2026
The government is exploring the viability of “forward contracting” for electricity deals, enabling power utilities to hedge against price volatility and shield consumers from sudden bill shocks.
The Energy Regulatory Commission (ERC) is reviewing the current legal framework for this mechanism intended to help distribution utilities and electric cooperatives cushion the impact of future spikes in power costs.
“The identified potential benefits of such a framework, should it be found viable and prudent to implement, are significant,” ERC chairman and CEO Francis Saturnino Juan said at a roundtable discussion yesterday.
Under this framework, power utilities may lock in their future supply from power producers at a predetermined price, with rates reflecting projected electricity demand and generation costs.
This story is from the January 28, 2026 edition of The Philippine Star.
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