𝗡𝗔𝗦𝗘𝗖𝗢𝗥𝗘 𝗢𝗡 𝗘𝗥𝗖’𝗦 “𝗟𝗔𝗡𝗗𝗠𝗔𝗥𝗞 𝗙𝗜𝗫”: 𝗔𝗡𝗦𝗪𝗘𝗥 𝗧𝗛𝗘 𝗟𝗘𝗚𝗔𝗟𝗜𝗧𝗬 𝗢𝗙 𝗟𝗜𝗡𝗘 𝗥𝗘𝗡𝗧𝗔𝗟 𝗙𝗜𝗥𝗦𝗧

13 August 2026 — The Energy Regulatory Commission announced what it calls a “𝐥𝐚𝐧𝐝𝐦𝐚𝐫𝐤 𝐟𝐢𝐱” to address excessive Line Rental charges and misallocated WESM market refunds, including the suspension of certain Line Rental collections, recalibration of the pricing methodology, and a retroactive audit dating back to 2021.

NASECORE welcomes any action that may correct overcharging and return money rightfully due to consumers.

But there is a more fundamental question that cannot be sidestepped: 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐜𝐥𝐞𝐚𝐫 𝐥𝐞𝐠𝐚𝐥 𝐛𝐚𝐬𝐢𝐬 𝐟𝐨𝐫 𝐢𝐦𝐩𝐨𝐬𝐢𝐧𝐠 𝐋𝐢𝐧𝐞 𝐑𝐞𝐧𝐭𝐚𝐥 𝐜𝐡𝐚𝐫𝐠𝐞𝐬 𝐨𝐧 𝐞𝐥𝐞𝐜𝐭𝐫𝐢𝐜𝐢𝐭𝐲 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐩𝐥𝐚𝐜𝐞?

Correcting the formula, reallocating the Net Settlement Surplus, or ordering refunds may address the consequences of the present system. They do not, by themselves, establish the legality of the charge being imposed.

Before the Commission speaks of recalculation, redistribution, recovery, or refund, NASECORE believes the primordial issue must first be squarely resolved:

IS THE LINE RENTAL CHARGE LAWFULLY AUTHORIZED, AND WHAT SPECIFIC PROVISION OF LAW EXPRESSLY ALLOWS ITS COLLECTION FROM CONSUMERS?

If the charge has no sufficient legal foundation, then improving the mechanism by which it is computed cannot cure that defect.

The ERC itself has now acknowledged that the existing market mechanism produced distorted Line Rental charges and inequitable allocation of market surpluses that burdened consumers, particularly in the Visayas. This makes a full examination of the charge’s legal basis even more necessary—not less.

NASECORE therefore calls on the ERC to publicly establish and explain:

the statutory and regulatory authority for Line Rental; who is legally liable to pay it; why it may properly be passed on to electricity consumers; and whether all amounts previously collected were lawful, reasonable, transparent, and properly authorized.

A genuine consumer-centered solution must begin with legality.

You cannot “fix” what may not even be legal.
FIRST, ANSWER THE LEGALITY OF LINE RENTAL CHARGES.

Consumers should pay only what is lawful, proven, reasonable, and properly authorized. Nothing more.