DOE Briefs JCPC on Revised Rules on Financial Benefits to Power Plant Host Communities

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Department of Energy (DOE) Secretary Alfonso G. Cusi led the energy family today in briefing the Joint Congressional Power Commission on the revised rules on the financial benefits to the communities hosting the country’s power plants, legally known as Energy Regulation No. 1-94 (ER 1-94).

"It is our duty to serve our people to the best of our abilities. Thus, we recently issued a Department Circular to enhance the ER 1-94 Program and maximize its benefits to host communities," Sec. Cusi said.

Under the ER 1-94 Program, communities hosting power generation facilities or energy resources are entitled to one centavo per kilowatt-hour (P0.01/kWh) of the total electricity sales of Generation Companies or Energy Resource Developers.

According to the Energy chief, one of the major changes introduced is the direct remittance of financial benefits to host communities for their immediate utilization. Streamlining the release of funding will eliminate the bureaucratic process which hampers socio-economic development of the communities hosting the power plants.

After conducting nationwide public consultations to solicit the inputs and comments of key energy stakeholders, Sec. Cusi signed Department Circular No. DC 2008-08-0021, amending Rule 29(A) of the Implementing Rules and Regulations of Republic Act No. 9136 or the EPIRA on 26 July 2018.

Sec. Cusi further emphasized, "It is high time that the Program is revised. The modifications we are introducing will support the government's Total Electrification Program to energize unserved and underserved areas. We want the host communities to immediately reap the benefits of hosting our power generation facilities."

The DOE is continuously working with all energy stakeholders to further improve the ER1-94 Program. Guidelines for the implementation of the Department Circular will be issued within 60 days, to be followed by information, education and communication campaigns to inform the public.

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