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Manila Bulletin devider Business devider The Economy devider DOE multiplies host community energy share five-fold

DOE multiplies host community energy share five-fold

Published Oct 22, 2025 02:51 pm
The Department of Energy (DOE) has significantly increased the financial benefits for host communities of energy projects, aiming to ensure they share more substantially in the gains of energy development.
In a statement on Wednesday, Oct. 22, the Department of Energy (DOE) announced the increase in financial benefits under the Energy Regulation Program No. 1-94 (ER 1-94), raising it from ₱0.01 to ₱0.03 per kilowatt-hour (kWh) of electricity generated and sold.
This will also raise the host communities’ share from ₱0.005 to ₱0.025, which is said to be five times larger than before.
This higher benefit would enable power generators to support the local livelihood, environmental protection, healthcare, and education in these areas, as the program mandates that generation companies (GenCos) and other developers set aside a portion of their revenues for the communities that welcome their projects.
The updated framework for ER 1-94 would allow these host communities to identify the priority projects that would utilize these financial gains, as these allocations would be administered through the Development and Livelihood Fund (DLF), the Reforestation, Watershed Management, and/or Environment Enhancement Fund (RWMHEEF), and the Electrification Fund.
While the financial benefits for host communities have increased, the DOE clarified that a portion of the funds will still be allocated for household electrification, or may be used to lower electricity rates if left unused.
Energy Secretary Sharon Garin described this recent feat as an investment, as she stated, “We are shifting our approach to focus on 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.”
The DOE will conduct regular audits with the Commission on Audit (COA) to ensure transparency in financial activities.
Last year, the program provided benefits to 683 local government units, 321 barangays, 286 municipalities and cities, and 76 provinces.
In August, the Department of Energy (DOE) signed a memorandum of agreement (MOA) with five electric cooperatives for the Locally Funded Project – Total Electrification Program (LFP-TEP), which will roll out ₱192.8 million worth of investments to support Aklan Electric Cooperative, Inc. (AKELCO), Aurora Electric Cooperative, Inc. (AURELCO), La Union Electric Cooperative, Inc. (LUECO), Quezon II Electric Cooperative, Inc. (QUEZELCO II), and Southern Leyte Electric Cooperative, Inc. (SOLECO).

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