The Energy Regulatory Commission (ERC) has approved an increase in the Universal Charge for Missionary Electrification (UCME) starting the February 2026 billing.
Under the new rate, UCME will rise to P0.2763 per kilowatt-hour (kWh), up from P0.1993 per kWh. This is an increase of P0.077 per kWh, or about 38.6 percent, which will be paid by electricity consumers connected to the main grid.
UCME is a charge collected to subsidize electricity in remote and off-grid areas that are not connected to the national power grid. These areas are mostly served by the National Power Corp.’s Small Power Utilities Group (SPUG), which relies heavily on diesel generators and faces higher operating costs.
The ERC said the approved rate is still lower than what NPC applied for, which was P0.3127 per kWh, or P0.0364 per kWh higher than the rate granted.
According to the ERC, NPC will need P30.77 billion in subsidies for 2026, with most of the funds going to fuel costs for diesel-powered plants in missionary areas.
ERC chairman Francis Saturnino Juan said electricity users in off-grid areas pay subsidized rates that are much lower than the actual cost of producing power. As fuel and operating costs rise, the gap between the true cost of electricity and what consumers pay has widened, increasing the need for subsidies.
He explained that the UCME increase is necessary to keep power available and affordable in remote communities, even as it slightly raises electricity costs for grid-connected consumers.
