The Department of Energy (DOE) announced that starting January 2026, communities hosting power projects will receive higher financial benefits under the Energy Regulation (ER) 1-94 program.
Under the new DOE Circular No. 2025-10-0023, signed by Energy Secretary Sharon Garin, host communities will now receive 2.5 centavos per kilowatt-hour (kWh) of electricity generated and sold—up from the current half-centavo rate.
The ER 1-94 program mandates power generators to share revenue with host localities to fund electrification, infrastructure, and social projects. Funds may also be used to lower electricity rates or support unserved households.
According to DOE estimates, hosting a 100-MW conventional plant could yield up to P21 million in annual benefits, while a similar-sized solar plant could generate around P5.5 million.
As of end-2024, the program had supported 683 local government units (LGUs) across the country.
In a related move, the DOE also partnered with Palawan State University and Western Philippines University to provide over P6 million in scholarships and institutional support sourced from Petroleum Service Contracts (PSCs) in the Northwest Palawan Basin.
Four PSCs—operated by PXP Corp., NPG Pty. Ltd., and Philodrill Corp.—will fund the initiative, which includes stipends and support for students living near project sites, as well as capacity-building for the universities.
Garin said the initiatives aim to ensure communities hosting energy projects directly benefit from the country’s energy development.
