ER 1-94, Giving Back to the Community

Energy Regulations No. 1-94 (ER 1-94) was enacted to ensure that host communities receive a reasonable share of the profit from power plants operating in their area. The policy guidelines fall under the Department of Energy Act of 1992 and the Electric Power Industry Reform Act of 2001 (EPIRA).

ER 1-94 states that these communities will receive one centavo for every kilowatt-hour (P0.01/kWh) generated. These funds can be used by host beneficiaries to electrify areas or households that have no access to power and for livelihood programs. This includes reforestation, watershed management, health, and environmental enhancement initiatives.

On August 23, 2018, ER 1-94 was amended through the Department Circular No. 2018-08-0021, allowing AboitizPower to directly remit financial benefits to its host communities.

Throughout the COVID-19 pandemic, ER 1-94 delivered critical support to host communities, enabling them to withstand the crisis and strengthen their preparedness for future emergencies.

Now that conditions have stabilized, host beneficiaries are channeling their allocated funds into comprehensive community development. Key projects include improved public infrastructure by building better roads, installing solar lights for safety, and upgrading water systems. Healthcare is also a major focus, with investments in new ambulances, advanced medical equipment, and hospital facility enhancements. Furthermore, underserved communities are benefiting from the host distribution utilities’ projects of expanding the electrical grid and providing alternative power solutions.