THE Energy Regulatory Commission (ERC) will hold public hearings in various parts of the country on the petition filed by the National Power Corporation (NPC) last November 28, 2023 seeking the approval of the proposed new rates to be paid by consumers in off-grid areas in the country.

Starting in March all the way to October 2024, hearings will be conducted for the proposed new Subsidized Approved Generation Rates (SAGR) for NPC’s Small Power Utilities Group (SPUG) areas in Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Tablas, Camotes, Siquijor, Bantayan, Basilan, Sulu, Tawi-Tawi, among others.

The ERC, through the Initial Order and Notice of Public/Virtual Hearing dated January 18, 2024 for ERC Case No. 2023-133 RC, set schedules for the determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference and presentation of evidence. 

The current effective SAGR being implemented are based on approval issued by the ERC in 2023.

Under Section 70 of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), NPC is mandated to perform the missionary electrification function through its SPUG, and shall be responsible for providing power generation, and its associated power delivery systems, in areas that are not connected to the transmission lines.

The SPUG plays a crucial role in providing basic and reliable power services to rural residents and community facilities in far-flung and unviable areas.

The NPC proposed new SAGRs for the year 2024—two years after the ERC approved, through an Order in ERC Case No. 2018-048 RC, the adjustment of SAGR in September 2021 in consideration of the impact of excise tax to Filipino consumers.