Off-grid power rates to increase for businesses in 2025

Commercial and industrial customers in 14 off-grid areas will face higher electricity rates starting November 2025 following the Energy Regulatory Commission’s (ERC) approval of new generation charges.

In an order dated Sept. 23, 2025, under ERC Case No. 2023-133 RC, the commission granted interim relief to the National Power Corporation (NPC), allowing it to raise the Subsidized Approved Generation Rates (SAGR) in missionary areas where power is still heavily subsidized.

The areas affected include Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Bantayan, Camotes, Siquijor, Basilan, Tawi-Tawi, Jolo, and Busuanga.

Approved generation rates will range from PHP 7.79 to PHP 8.98 per kilowatt-hour (kWh) starting November 2025, rising further to PHP 8.71 to PHP 9.69/kWh from November 2026.

In its statement, the ERC said the rate hike “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, public building, and streetlight users will remain unchanged under the new structure.

The commission’s decision is part of an ongoing effort to make missionary electrification rates more cost-reflective and reduce the burden on the Universal Charge for Missionary Electrification (UCME), which has now grown to over PHP 24 billion annually.

The SAGR increase comes amid rising fuel and generation costs, which continue to drive up subsidies for off-grid electrification programs managed by NPC.

By targeting only non-residential users, the ERC aims to balance cost recovery with consumer protection, particularly for economically vulnerable households in remote areas.

The new policy reflects a shift toward a more sustainable framework for financing electricity access in underserved regions while encouraging more efficient energy use among commercial sectors.