Energy sales in areas under the Small Power Utilities Group (SPUG) posted a six-percent growth in 2008, or from 503 gigawatt-hours (GWh) to 534 GWh. Average power rates in the SPUG areas went down from P7.8204 per kilowatt-hour (kW) in 2007 to P7.2860 per kWh in 2008.

The SPUG is National Power's missionary electrification arm, mandated to provide electricity to remote islands and far-flung, inland barangays that are not connected to any of the main grids. At present, SPUG services 78 small islands and eight off-grid areas. It operates 304 generating units with a total rated capacity of 128.997 megawatts. It has 42 customers or off-taker distribution utilities, consisting of 39 electric cooperatives and three Local Government Units.

SPUG rates are higher than main grid rates because they are still heavily subsidized. The cost of producing power in the off-grid areas are estimated at P10-P11 per kWh. Revenues from the Universal Charge-Missionary Electrification for the year 2008 amounted to P1.117 billion.

Together with the increase in sales, the SPUG has also implemented and completed the following projects in 2008: installation of four 500-kilowatt (kW) generation sets to augment the capacity of the Cuyo Diesel Power Plant (DPP) in Palawan; two 500-kW units for the Siasi DPP in Sulu; two 600-kW units for Power Barge 109 in Tablas, Romblon; and beefed up the capacities of three diesel power plants in Marinduque, namely, the Maniwaya DPP; the Mongpong DPP, and the Polo DPP.

To augment the various islands transmission capacity, SPUG laid down more than 100 circuit-kilometers (ckt-km) of 69-kilovolt (kV) transmission lines (T/L) in 2008, consisting of the 52.40 ckt-km Sta. Cruz-San Jose T/L in Occidental Mindoro and the 51.17 ckt-km Virac-Viga T/L in Catanduanes, and completed four substation (S/S) projects, namely, the Puerto Princesa-Roxas 69-kV S/S and the Roxas 69-kV S/S, both in Palawan; the Mansalay S/S in Occidental Mindoro; and the Viga Load-End S/S in Catanduanes.

It also energized 107 barangays in Masbate and Ticao under the Philippine Rural Electrification Service Project. Another two barangays are now finally enjoying electricity supply through the Grid Extension Project in Burias Island, also in Masbate.

Steady progress in the privatization of its operations was also achieved in SPUG areas. Of the 14 so-called "first-wave" areas for privatization, nine are already under New Power Providers, namely, Oriental Mindoro; Bantayan; Marinduque; Tablas; Romblon; Masbate; Catanduanes, Mainland Palawan; and Basilan. SPUG is eyeing the privatization of two more areas -  Camotes and Siquijor - shortly.

It was also in 2008 when the SPUG scored a breakthrough by signing the first-ever Qualified Third Party (QTP) service contract with Powersource Philippines, Inc. for the supply of electricity in Bgy. Rio Tuba in Bataraza, a second-class municipality located on the southernmost tip of mainland Palawan. Under Section 59 of the Electric Power Industry Reform Act, government has opened to QTPs the business of providing electricity to remote and unviable areas where neither National Power nor TransCo nor the local electric cooperative is unable to provide such service.