DOE triples benefits for energy host communities starting 2026

Communities hosting energy resources and power-generating facilities will receive a major funding boost starting January 2026, as the Department of Energy (DOE) triples the financial benefits under the Energy Regulation (ER) Program No. 1-94.

Currently, host communities receive ₱0.50 per kilowatt hour (kWh) under the program, but this will increase to ₱2.50/kWh next year. 

The financial benefit derived from electricity generated and sold will likewise rise from ₱0.01 to ₱0.03/kWh, based on a Department Circular signed by Energy Secretary Sharon Garin on October 14, 2025.

“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.”

The DOE said the higher funding will support projects in livelihood development, environmental protection, healthcare, and education, while the ₱0.50 allocation for electrification projects through distribution utilities will continue to help connect households without electricity.

Local government units may also opt to use the funds to lower power rates, either voluntarily or mandatorily if the funds remain unused for two years.

According to DOE estimates, a 100-MW conventional power plant may yield around ₱21 million in annual ER 1-94 benefits, while a 100-MW solar plant could generate ₱5.5 million per year.

The funds will be managed through the Development and Livelihood Fund, the Reforestation, Watershed Management, Health, and Environment Enhancement Fund, and the Electrification Fund to ensure transparency and accountability.

As of December 2024, the ER 1-94 Program had benefited 683 local government units across the country. With the tripled allocation, DOE expects even greater investments in community facilities, livelihoods, and local economic growth.