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What is Small Power Utilities Group?

  • “SPUG” is an acronym for Small Power Utilities Group. It is one of the functional groups of the National Power Corporation. SPUG is mandated by RA No. 9136 (otherwise known as the Electric Power Industry Reform Act of 2001 or the EPIRA Law) to perform the missionary electrification function and shall be responsible for providing power generation and its associated power delivery systems in areas that are not connected to the main transmission system.

What is the role of SPUG in our community?

  • SPUG plays a pivotal role in the missionary areas by providing basic and reliable power services to rural residents, community facilities, such as school buildings, health centers, barangay halls (and roads) and streetlights, to name a few with an ultimate aim of bringing the operations to viability levels.  

What is a Missionary Area?

  • Missionary area as defined and/or understood under RA 9136 refers to areas that are not connected to the transmission system (main grid). Missionary areas can be interchangeably used to mean: off-grid; far-flung; remote; or unviable areas.

What are the main sources of funds for Missionary Electrification?

  • The missionary electrification function is funded from revenues derived through sales of electricity in missionary areas and from the Universal Charge for Missionary Electrification or UCME to be collected from all electricity end-users as determined by the Energy Regulatory Commission (ERC).  

What are the other funding sources for Missionary Areas?

  • As per Section 5, Rule 13 of the EPIRA Implementing Rules and Regulations (IRR):

    “SPUG may also draw on other funding sources including appropriations from Congress, the utilization of private capital, multilateral aids or grants, Official Development Assistance (ODA) Funds and others.

    SPUG shall source all the cost differentials between the sales revenues and operating expense and capital expense for expansion, rehabilitation and facilities for new areas of development based on the approved MEDP from its share from the Universal Charge and/or other sources as it may obtain.

    In accordance with DOE’s MEDP, the proposed five- (5) year annual budget for operating and capital expenditures of SPUG shall be submitted to ERC.”

What is UCME?

  • UCME refers to the Missionary Electrification component of the Universal Charge, expressed in peso per kilowatt-hour and applied to all electricity end-users which is determined, fixed and approved by the ERC where evaluation of the requirement is based on the Missionary Electrification Development Plan submitted by the Department of Energy.

What is MEDP?

  • The Missionary Electrification Development Plan (MEDP) of the Department of Energy (DOE) as defined under Section 1, Rule 13 of EPIRA IRR, “shall include capital investment and operations regarding capacity additions in existing missionary areas and the facilities to be provided in other areas not connected to the transmission system”.

 

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