STATE-RUN National Power Corp. (Napocor) is seeking regulatory approval to collect an additional P10.82 billion from on-grid electricity consumers to cover subsidy obligations to power providers serving off-grid areas.
In an application filed with the Energy Regulatory Commission (ERC), Napocor proposed an additional P0.0939 per kilowatt-hour (kWh) in the universal charge for missionary electrification (UCME), which would raise the current rate to P0.3702 per kWh from P0.2763 per kWh.
The state-run company proposed recovering the amount over 12 months, from August 2026 to July 2027, to spread the additional cost among electricity consumers.
“A twelve-month recovery period provides a reasonable balance between Napocor’s need to recover legitimate subsidy obligations and the need to avoid an undue rate impact on consumers,” Napocor said in its application.
The UCME, authorized under the Electric Power Industry Reform Act of 2001 (EPIRA), is a charge collected from on-grid electricity consumers to subsidize power supply in areas not connected to the main transmission grid.
Napocor is responsible for providing electricity in remote and island communities through its Small Power Utilities Group (SPUG).
According to Napocor, the additional P10.82 billion is intended to cover subsidy requirements of new power providers whose power supply agreements were approved by the ERC after the company submitted its initial 2026 rate application.
The company said subsidy claims had exceeded the available UCME funds, resulting in payment backlogs of four to five months.
“Absent the approval and recovery of these additional subsidy requirements, the provision of reliable electric service in the affected missionary areas shall be adversely affected,” Napocor said.
The state-run company also sought provisional authority or interim relief from the ERC to allow the recovery of the additional charges while the application undergoes regulatory proceedings.
The proposed increase remains subject to ERC approval. — Sheldeen Joy Talavera