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Manila Bulletin devider Business devider The Economy devider ERC: On-grid, residential island consumers spared from power rate hike

ERC: On-grid, residential island consumers spared from power rate hike

Published Oct 13, 2025 12:00 am  |  Updated Oct 11, 2025 03:17 pm
ERC Chairperson Francis Saturnino C. Juan
ERC Chairperson Francis Saturnino C. Juan
Commercial and industrial sectors in certain islands may soon see changes in their power bills, but the Energy Regulatory Commission (ERC) assured that regular consumers, especially those residing on-grid, won’t have to pay extra for it.
According to ERC Chairperson Francis Saturnino Juan, the subsidized approved generation rate (SAGR), which is intended to keep electricity in off-grid areas affordable, has been adjusted for commercial and industrial consumers in select missionary areas. These costs will not be reflected in households.
“We’re trying to narrow the gap between SAGR and TCGR [true cost generation rate] in the off-grid areas by raising the SAGR for the commercial and industrial customers,” he said in a Viber message.
He noted that these subsidies are funded through the universal charge-missionary electrification, a line item paid by on-grid customers, including those in Metro Manila.
In an advisory, the ERC said island businesses will see a slight increase in their SAGR, citing their higher power use and greater capacity to absorb the adjustment.
Effective this November, Oriental Mindoro, Occidental Mindoro, Marinduque, Palawan, Catanduanes, Tablas, Romblon, and Busuanga will have a rate change of ₱8.3182 per kilowatt-hour (kWh).
Camotes, Siquijor, and Bantayan Islands will see ₱8.9781/kWh for its SAGR.
Basilan, Tawi-Tawi, and Jolo are set to have an adjustment of ₱7.8682/kWh, while Masbate will see a ₱7.7945/kWh change next month.
By November of next year, businesses in Oriental Mindoro, Occidental Mindoro, Marinduque, Palawan, Catanduanes, Tablas, Romblon, and Busuanga will have an increased SAGR of ₱9.2464/kWh.
Camotes, Siquijor, and Bantayan would have a ₱9.698/kWh adjustment.
Basilan, Tawi-Tawi, and Jolo are also set to go up by ₱8.7149/kWh, and Masbate would see a ₱8.7227/kWh increase.
This advisory came on the heels of a clarification on the implementation of the interim relief granted to state-run National Power Corp. (NPC), which handles power generation in off-grid or missionary areas through its Small Power Utilities Group (SPUG).
The ERC stated that this transitional relief would ensure continued electricity service in remote communities while keeping rates fair for both island and on-grid consumers.
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