The Energy Regulatory Commission (ERC) has introduced its Alternative Dispute Resolution (ADR) Policy, aiming to streamline the resolution of consumer complaints and disputes in the energy sector.
Through Resolution No. 5, Series of 2025, the ERC institutionalized ADR to provide a faster, cost-effective, and impartial process for resolving conflicts between consumers and regulated energy entities.
The ADR Policy incorporates negotiation, mediation, conciliation, arbitration, and expert evaluation as preferred methods for settling disputes outside the traditional courtroom system.
The approach is expected to reduce legal expenses, court backlogs, and the time required to resolve cases, enhancing regulatory efficiency and consumer protection.
“This policy is a significant step in improving our regulatory processes,” said ERC Chairperson and CEO Monalisa C. Dimalanta. “We actively encourage and promote ADR as a means to expedite conflict resolution between regulated entities and consumers.”
The policy aligns with Republic Act No. 9285, or the Alternative Dispute Resolution Act of 2004, which requires government agencies to promote ADR mechanisms.
By implementing ADR, the ERC aims to reduce reliance on lengthy and costly court litigation, providing quicker resolutions to consumer complaints.
The ADR Policy complements the ERC’s Revised Rules of Practice and Procedure (RRPP) on consumer complaints, with plans to expand its provisions further to improve dispute resolution mechanisms. This move is expected to enhance stakeholder confidence in the ERC’s ability to resolve conflicts fairly and transparently.
The ERC regularly addresses disputes between electric cooperatives, distribution utilities, and consumers, including billing disputes, power supply issues, and service-related complaints. With the institutionalization of ADR, these stakeholders now have a structured and impartial mechanism for resolving conflicts without resorting to litigation.
“The institutionalization of ADR emphasizes our commitment to fostering a regulatory environment where conflicts are resolved fairly and expeditiously,” Dimalanta added. “This strengthens consumer protection and stakeholder confidence in the energy sector.”
By simplifying and expediting dispute resolution, the ERC empowers consumers with accessible options for addressing complaints. The policy represents a significant step toward regulatory modernization, benefitting both consumers and energy providers.
The ERC’s ADR Policy underscores its dedication to creating a fair and efficient energy sector, ensuring that consumer rights are upheld while fostering transparency and trust among stakeholders.
