Monday, May 18, 2026
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ERC approves power rate increase in off-grid areas

The power rates for commercial and industrial customers in several missionary areas in the Philippines are set to rise in November 2025 after the energy regulator approved an interim rate increase.

The Energy Regulatory Commission (ERC) granted interim relief to the National Power Corp. (NPC), approving a new subsidized approved generation rate (SAGR) for NPC’s Small Power Utilities Group.

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It said the higher rates would affect commercial and industrial customers in Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Tablas, Camotes, Siquijor, Bantayan, Basilan, Sulu and Tawi-Tawi.

The ERC said in a statement it adopted a “fuel cost-based approach” to calculate the SAGR, as fuel costs are “directly linked to generation costs and provide a clear, justifiable basis for the proposed rate adjustment.”

“This ensures that the resulting rates remain grounded in real operational costs, while also promoting a more sustainable subsidy framework,” the regulator said.

Based on evidence from NPC, the commission said it found “merit and necessity” to allow the new rates to be implemented while a final decision is pending.

The ERC directed NPC to implement the rate increase starting with the November billing period and to inform the distribution utilities and new power providers in the affected areas.

For commercial and industrial customers in Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon and Tablas, the approved SAGR is P8.3182 per kilowatt-hour (kWh), an increase of P0.9282 per kWh.

The rate in Masbate will also rise by P0.9282 per kWh to P7.7945 per kWh.

SAGR rates for Camotes, Siquijor, and Bantayan will go up by P0.7199 per kWh to P8.9781 per kWh. The rate in Basilan, Sulu, and Tawi-Tawi will increase by P0.8467 per kWh to P7.8682 per kWh.

The ERC also approved higher SAGR charges for the second year by as much as P1.8564 per kWh.

“The final SAGR for the residential and commercial/industrial consumers… shall be determined by the Commission in its decision on the subject petition,” the ERC said.

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