Energy Regulations 1-94 (ER 1-94)
A profit-sharing mechanism that allocates a portion of electricity sales revenue from energy facilities to the communities that host them, supporting local electrification, development, livelihood, and environmental programs [PEP 2023-2050 Vol. I, p.40, 2023].
Allocation
- Rate: one centavo (PhP 0.01) per kilowatt-hour of electricity sales
- Beneficiaries: local government units (LGUs), distribution utilities (DUs), and indigenous cultural communities / indigenous people (ICCs/IPs) in host communities
Eligible Program Areas
Funds from ER 1-94 support host community programs in [PEP 2023-2050 Vol. I, p.40, 2023]:
- Electrification
- Development and livelihood
- Reforestation
- Watershed management
- Health
- Environmental enhancement
Administration
The DOE works with all stakeholders including host communities and ICCs/IPs to maximize utilization of their equitable share and address identified and emerging community needs [PEP 2023-2050 Vol. I, p.40, 2023].
Fund Disbursement Status (December 2022)
As of December 2022: PhP 5.055 billion disbursed (78.7%) of the PhP 6.425 billion total reconciled ER 1-94 funds; PhP 1.370 billion remaining [PDP 2023-2050, Table 21, 2025]:
| Fund Type | Reconciled (PhP B) | Disbursed (PhP B) | Remaining (PhP B) |
|---|---|---|---|
| Electrification Fund (EF) | 3.436 | 2.422 | 1.012 |
| Development and Livelihood Fund (DLF) | 1.474 | 1.304 | 0.170 |
| RWMHEEF | 1.516 | 1.328 | 0.187 |
| Total | 6.425 | 5.055 | 1.370 |
For the June 2023 updated figures (PhP 5.091B disbursed, 79.2%), see National Total Electrification Roadmap (NTER) 2023-2032 .
COVID-19 Response (DC2020-04-0008)
Department Circular No. DC2020-04-0008 (“Rationalizing the Utilization of Energy Regulation (ER) 1-94 Funds by the Host LGUs in Response to COVID-19 Public Health Emergency”) — as a proactive pandemic response, the DOE authorized all available ER 1-94 funds (EF + DLF + RWMHEEF) then held by DOE and generating companies (last billing quarter of 2019) to be remitted to host LGUs for COVID-19 related projects [PDP 2023-2050, p.41, 2025].
A DOE Advisory dated 8 May 2023 invoked the Sunset Clause (Section 10 of DC2020-04-0008), reverting the EF component back to its original purpose — total electrification of unserved and underserved areas — as the COVID-19 public health emergency had effectively ended.
IP/ICC Extension
DC2018-03-0005 (“Prescribing the Guidelines Recognizing the Rights of Indigenous Cultural Communities/Indigenous Peoples in their Ancestral Domains and Access to the Financial Benefits as Host Communities under the ER 1-94 Program”) — extended ER 1-94 financial benefits to IPs/ICCs whose ancestral lands host power generation facilities [PDP 2023-2050, p.42, 2025].
DC2019-06-0010 (“Prescribing the Administrative Operating Guidelines for the Availment and Utilization of Financial Benefits by ICCs/IPs pursuant to DC2018-03-0005”) — provided the operational mechanism.
As of December 2022: 59 host IPs/ICCs enlisted across 27 power generation facilities/energy resources covering 7 regions: CAR, II, III, V, VI, XI, and XII. The DOE coordinates with the National Commission on Indigenous Peoples (NCIP) on documentary requirements for direct remittance of financial benefits to host IPs/ICCs [PDP 2023-2050, p.42, 2025].