MANILA – The Department of Energy (DOE) announced that host communities of energy resources and power-generating facilities will receive higher financial benefits beginning January 2026, as part of efforts to promote inclusive growth, accelerate electrification, and spur local development.

Under the new policy, allocations to host communities will increase from ₱0.50 to ₱2.50 per kilowatt-hour (kWh) under the Energy Regulation (ER) 1-94 Program, the DOE said in a statement Wednesday.

Energy Secretary Sharon Garin, through a department circular signed on October 14, 2025, also approved an increase in financial benefits from ₱0.01 to ₱0.03 per kWh of electricity generated and sold.

“We are shifting our approach to focus on empowering people and giving them a greater stake in our country’s energy growth,” Garin said. “By reinvesting the benefits of power generation back into local areas, we are building shared prosperity and a stronger foundation for a sustainable future.”

“We are investing in the Filipino spirit — in the ingenuity, resilience, and determination of our people. This is a partnership built on trust and shared progress, ensuring that every community truly benefits from the energy that powers our nation,” she added.

The DOE said the additional funding will support projects focused on livelihood development, environmental protection, healthcare, and education, while the ₱0.50/kWh allocation for electrification projects through distribution utilities (DUs) will continue to fund household connections.

The policy also gives local government units (LGUs) the option to use the funds to lower electricity rates, either voluntarily through a resolution or mandatorily if the funds remain unused for two years.

According to DOE estimates, hosting a 100-megawatt conventional power plant could generate ₱21 million annually in ER 1-94 benefits, while a 100-megawatt solar power plant could yield ₱5.5 million per year, assuming maximum capacity operations.

The funds will be managed through the Development and Livelihood Fund (DLF), the Reforestation, Watershed Management, Health, and/or Environment Enhancement Fund (RWMHEEF), and the Electrification Fund to ensure transparency and proper utilization.

As of December 2024, the ER 1-94 Program had supported 683 local government units (LGUs) — including 321 barangays, 286 municipalities and cities, and 76 provinces.

“With the tripled allocation, the DOE projects a threefold increase in community investments — translating into improved facilities, more livelihood opportunities, and stronger local economies,” the department said. (PNA)