The Energy Regulatory Commission (ERC) has decided to adjust its 'no disconnection' policy. The decision aims to address financial concerns of power firms in the Philippines. The extension applies to customers using up to 200 kilowatt-hours (kWh) per month. ERC Chairman Francis Juan announced this on Monday. He said the announcement will release later in October.

The previous directive covered all residential and non-residential customers. It initially suspended electric disconnections for three months. This period stretched from August to October this year. Large companies exploited the policy. This accords to ERC reports. ERC seeks to limit abuses by narrowing the scope.

Power companies face cash flow challenges due to unpaid bills. Juan emphasized the stress on the financial status of these companies. The adjustment allows companies to manage expenses better. Regulators hope this will prevent further economic strain on the industry.

Juan stated many utilities and cooperatives requested this change. They seek fair treatment under the policy. Power rates have climbed steadily in recent months. Residential customers may still face rising rates. The move adds financial pressure.

The policy preserves protections for smaller consumers. ERC recognizes the hardships many face with rising power costs. Larger consumers must now adhere to regular billing practices. This aims to balance financial interests between parties.

Electric utilities must pay their operating costs. The ERC aims to create a more stable financial environment for these firms. Juan explained that this move addresses multiple stakeholder concerns. The adjustment seeks to sustain the energy sector's vitality.

Consumer groups have advocated for continued relief for small users. They emphasize the importance of extending support. ERC considers this when shaping regulatory policies. The revised policy aims to strike balance.