A group of lawmakers is pushing to delay the implementation of the Energy Regulatory Commission’s (ERC) order that increases the Subsidized Approved Generation Rate (SAGR) in missionary electrification areas, warning that the move could sharply raise electricity costs in off-grid and island communities.

In a manifesto led by the Power Bloc, a majority of district representatives whose constituencies will be affected have signed on to oppose the immediate rollout of the rate hike.

Under the ERC order, residential consumers in missionary areas face electricity bill increases of 34–35%, while commercial and industrial users could see hikes of 65–66%. This translates to about PHP 360.76 more per month for households consuming 100 kilowatt-hours (kWh) and more than PHP 5,376.92 per month for businesses using 1,000 kWh.

“This is not merely a rate adjustment,” the manifesto stated, The lawmakers described the order as “a serious threat to livelihoods, the local economy, and the very objective of missionary electrification. 

APEC Party-List Rep. Sergio C. Dagooc warned that the higher charges would directly affect household spending and consumer prices. He said the increase would be felt immediately by families, as electricity costs compete with food, education, and other basic needs.

PhilRECA (Philippine Rural Electric Cooperatives Association) Party-List Rep. Presley C. De Jesus echoed the concern, cautioning that poorly calibrated policies could undo years of progress in rural electrification. “Every kilowatt-hour should bring light, not hardship,” he said.

The lawmakers argued that the ERC order runs counter to Section 70 of the Electric Power Industry Reform Act (EPIRA), which mandates that missionary electrification should provide affordable, reliable, and sustainable electricity to areas not connected to the main grid. They also criticized the supposed lack of a clear methodology explaining how the new SAGR was computed.

PhilRECA said the ERC order failed to adequately consider submissions from the National Economic and Development Authority, now known as the Department of Economy, Planning, and Development, as well as warnings from the Association of Isolated Electric Cooperatives on the potential impact of higher rates on poverty and local economies.

Representatives from Palawan, Mindoro, Marinduque, Catanduanes, Romblon, Masbate, Siquijor, Basilan, Sulu, Tawi-Tawi, and several districts in Cebu were among those who endorsed the manifesto. The bloc also expressed support for House Resolution No. 537, which seeks a congressional investigation into the legality, methodology, and fairness of the ERC order.

How should regulators balance cost recovery with affordability in missionary electrification areas where consumers already face the highest power rates?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.