News Details

DOE Raises Community Benefit Share from Energy Projects to ?2.50/kWh Starting 2026

NPO

•

October 22, 2025

MANILA — Communities hosting power-generating facilities and energy resources will soon receive a significant boost in financial benefits, as the Department of Energy (DOE) announced a fivefold increase in allocations under the Energy Regulation (ER) 1-94 Program, starting January 2026.

From the current ₱0.50 per kilowatt-hour (kWh), the share of host communities will rise to ₱2.50 per kWh, with additional benefits increasing from ₱0.01 to ₱0.03 per kWh of electricity generated and sold. The adjustment aims to drive inclusive development, strengthen local economies, and accelerate nationwide electrification efforts.

Empowering Host Communities

Energy Secretary Sharon Garin, in a circular signed on October 14, 2025, emphasized that the reform shifts focus toward people-centered energy development.

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

She added that this initiative represents an investment in “the Filipino spirit — in the ingenuity, resilience, and determination of our people,” ensuring that energy growth directly benefits every community.

Expanded Development Programs

The increased funding will support projects focused on livelihood development, environmental protection, healthcare, and education within host areas. The ₱0.50 allocation for electrification projects will continue, primarily funding the connection of unserved households through distribution utilities (DUs).

Host LGUs may also choose to use part of the funds to reduce local electricity rates—either voluntarily through resolutions or mandatorily if funds remain unused for two years.

According to DOE estimates, a 100-MW conventional power plant could now generate about ₱21 million annually in community benefits, while a 100-MW solar power plant could yield around ₱5.5 million per year, assuming maximum capacity utilization.

Ensuring Transparency and Impact

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

As of December 2024, the ER 1-94 Program had already benefited 683 LGUs nationwide—covering 321 barangays, 286 municipalities and cities, and 76 provinces. With the tripled allocation, the DOE projects a threefold increase in local investments that will translate into better facilities, expanded livelihood opportunities, and stronger regional economies.

— NPO News Team | PNA-PR