The regulation of public services started way back in 1902 with the enactment of Act No. 520 which created the Coastwise Rate Commission. In 1906, Act No. 1507 was passed creating the Supervising Railway Expert. The following year, Act No. 1779 was enacted creating the Board of Rate Regulation. Then, Act No 2307, which was patterned after the Public Service Law of the State of New Jersey, was approved by the Philippine Commission in1914, creating the Board of Public Utility Commissioners, composed of three members which absorbed all the functions of the Coastwise Rate Commission, the Supervising Railway Expert, and the Board of Rate Regulation.

Thereafter, several laws were enacted on public utility regulation. On November 7, 1936, Commonwealth Act No. 146, otherwise known as the Public Service Law, was enacted by the National Assembly. The Public Service Commission (PSC) had jurisdiction, supervision, and control over all public services, including the electric power service.

On  June 8, 2001, Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001, has been enacted. The Act abolished the ERB and created in its place the Energy Regulatory Commission (ERC) which is a purely independent regulatory body performing the combined quasi-judicial, quasi-legislative and administrative functions in the electric industry.

The new ERC is faced with tremendous challenges in the restructured electric industry. In addition to its traditional rate and service regulation functions, ERC shall focus on two primary responsibilities: to ensure consumer education and protection, and to promote the competitive operations in the electricity market.

The ERC endeavors to create a regulatory environment that is democratic and transparent, and one that equitably balances the interests of both the consumers and the utility investors.