Host communities of the Southern Negros Geothermal Project (SNGP) in Valencia, Negros Oriental, are set to receive significantly higher remittances in 2026 following the implementation of the enhanced Energy Regulation (ER) Program 1-94 by the Department of Energy (DOE).
Erwin Magallanes, head of the Public Relations Division of First Gen-owned Energy Development Corporation (EDC) in Negros, said Tuesday, June 23, that the updated policy under Department Circular DC2025-10-0023 increases the financial benefits for host communities of energy resource and power-generating facilities.
Under the enhanced ER 1-94 program, the remittance rate was raised from one centavo to three centavos per kilowatt-hour of electricity generated and sold, effectively tripling the amount received by beneficiary communities.
“ER 1-94 is a mandated benefit for host communities wherein energy companies are required to allocate a portion of their revenues based on power generation,” Magallanes said.
“With the new policy, the allocation has increased from one centavo to three centavos per kilowatt-hour”, he added.
In 2025, the host barangays of Caidiocan, Malaunay, and Puhagan in Valencia, along with the municipal and the provincial governments of Negros Oriental, received more than PHP7.8 million in remittances from EDC.
The funds were released in April to the recipients but have yet to be utilized, as beneficiary local government units and communities are required to submit project proposals through corresponding resolutions to the DOE.
The municipality of Valencia received over PHP3 million; the provincial government of Negros Oriental, some PHP2.5 million; Barangay Puhagan, approximately PHP1 million; Barangay Malaunay, some PHP676,000; and Barangay Caidiocan, about PHP 410,000.
EDC, a subsidiary of First Gen Corporation, operates the SNGP, which has a total installed capacity of 221.9 megawatts.
According to EDC, the increased remittances are expected to support environmental protection initiatives and human capital development in Negros Oriental. For host barangays, the funds may be used for livelihood projects, reforestation, watershed management, health programs, and environmental enhancement activities.
The company noted that these programs are identified under the ER 1-94 framework and are aligned with the Negros Island Regional Development Plan, which promotes economic resilience and sustainable growth in the region.
Magallanes said remittances are generally released on a quarterly basis, subject to the completion of documentary requirements by beneficiary communities.
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