The Energy Regulatory Commission, or ERC, will hold eight-month public hearings nationwide to seek consumers’ approval on the petition filed by the National Power Corp., or NPC, to amend pass-on charges in off-grid areas.

The power regulator said late Monday that public hearings are set from March to October to discuss the proposed new Subsidized Approved Generation Rates, or SAGR, for NPC’s Small Power Utilities Group, or SPUG areas.

The areas covered are Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Tablas, Camotes, Siquijor, Bantayan, Basilan, Sulu, and Tawi-Tawi, among others.

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

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

As per the NPC petition, the proposed SAGR for residential and commercial rates in Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, and Tablas are planned to increase by P8.60 per kWh and P10.05 per kWh, respectively from the existing P5.64 per kWh.

Meanwhile, in Camotes, Siquijor, and Bantayan the proposed SAGR residential and commercial are P9.71 per kWh and P11.01 per kWh, respectively, from the current P6.26 per kWh.

In Basilan, Sulu, and Tawi-Tawi, the current SAGR of P5.12 per kWh is proposed to increase to P8.45 per kWh for residential customers and P9.61 per kWh for commercial users.

Under Section 70 of Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001, or 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.

Under the said Order, the implementation of the increase in the rates was mandated to take effect in the first billing period of the year 2022.