Communities hosting power facilities granted P0.03 per kWh revenue share

THE Department of Energy (DoE) said the financial benefits due to communities hosting energy resources and power-generating facilities have been granted a new revenue share of P0.03 per kilowatt-hour (kWh) starting January.

The revenue share rises from P0.01 per kWh currently, the DoE said.

The payment to communities is authorized by Energy Regulation Program No. 1-94 (ER 1-94), the DoE said in a statement on Wednesday.

Communities are entitled to a revenue share as compensation for hosting such facilities for energy projects.

When the new rate comes into force, the revenue share will be allocated as follows: 2.5 centavos for livelihood development, environmental protection, healthcare, and educational programs.

The remaining half-centavo will fund electrification projects that will link distribution utilities to households that lack power.

The policy contains an option to use the funds to lower the host communities’ electricity rates, which will require a resolution by the local government units (LGUs). Non-use of the funds for two years will make the power rate cuts mandatory.

“We are shifting our approach to focus on empowering people and giving them a greater stake in our country’s energy growth,” Energy Secretary Sharon S. 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.”

Beyond financial support, the new policy also calls for preferential employment for community members, local procurement, and skills development programs.

As of December 2024, the ER 1-94 Program funded 683 LGUs, comprising 321 barangays, 286 municipalities and cities, and 76 provinces. — Sheldeen Joy Talavera