Leyte and its host local governments are set to receive increased financial benefits from geothermal power generation following the remittance of P20.38 million by Energy Development Corporation (EDC) under the government’s ER 1-94 program for the first quarter of 2026.
The funds were recently turned over to the provincial government of Leyte, Ormoc City and its host barangays, and the municipality of Kananga and its host barangays.
The remittance represents financial benefits based on the electricity generated by EDC’s Leyte geothermal facilities, which straddle Ormoc and Kananga.
Of the P20.38 million remitted by EDC to these local government units, Leyte province received P6.79 million; Ormoc City, P4.39 million; Kananga, P3.52 million; and P5.65 million for the seven barangays and one resettlement area.
Under Department of Energy (DOE) Energy Regulations No. 1-94, power-generation companies are required to provide host communities with financial benefits for every kilowatt-hour of electricity generated.
Effective January 2026, the benefit increased to P0.03 per kilowatt-hour from the previous P0.01.
In Ormoc City, the first-quarter allocation will fund the rehabilitation of the learning center in Barangay Cagbuhangin and the installation of solar streetlights in Barangay Catmon. In Barangay Lim-ao, Kananga, funds will support a community stage for socioeconomic and sports activities as well as a proposed view deck to help promote local tourism.
Since 2018, the year the direct-remittance system was introduced, EDC has remitted more than P314.87 million in ER 1-94 benefits for community development projects in Eastern Visayas, based on the previous rate of P0.01 per kilowatt-hour.
The funds have supported infrastructure, rural electrification, health services, flood control, water systems, environmental programs, and livelihood initiatives.
Of the amount, Leyte V Electric Cooperative received P157.44 million for its electrification fund, while Kananga received P54.24 million, the Leyte provincial government P47.23 million, Ormoc City P40.22 million and regional projects P15.74 million.
ER 1-94 was established under Republic Act No. 7638 to provide financial benefits to communities hosting power-generation facilities. The program was later updated to allow generation companies to directly remit funds to host local governments, communities, and electric cooperatives, helping reduce delays in the release of development funds.
The increased rate to P0.03 per kilowatt-hour is expected to provide host communities with substantially higher resources for public services and development projects as long as the Leyte geothermal facilities continue generating electricity.