The Energy Regulatory Commission (ERC) has approved new Subsidized Approved Generation Rates (SAGR) for selected off-grid or missionary areas, applying only to commercial and industrial customers beginning November 2025.

In its order dated September 23, 2025, the ERC granted interim relief to the National Power Corporation (NPC) under ERC Case No. 2023-133 RC, raising generation rates in 14 missionary areas, including Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Bantayan, Camotes, Siquijor, Basilan, Tawi-Tawi, Jolo, and Busuanga.

The approved rates range from PHP 7.79 to PHP 8.98 per kilowatt-hour (kWh) starting November 2025, and PHP 8.71 to PHP 9.69/kWh from November 2026 onwards.

The ERC said the adjustment “is predicated on the principle that these customers typically possess a greater capacity to accommodate changes in electricity rates, given their engagement in revenue-generating activities.” Rates for residential, streetlight, and public building users remain unchanged.

The move follows a broader review of subsidies in off-grid areas, where rising fuel and generation costs have expanded the Universal Charge for Missionary Electrification (UCME) to more than PHP 24 billion annually.

The rate adjustment is part of efforts by the Commission to make missionary electrification more cost-reflective while easing the national subsidy burden.

How might this shift in SAGR affect power affordability and business operations in the country’s island grids?

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