DOE Fast Tracks Inspection of Completed ER No. 1-94 Projects

Wazzup Pilipinas!

The Department of Energy (DOE), through its Electric Power Industry Management Bureau – Rural Electrification Administration and Management Division (EPIMB-REAMD) has successfully inspected 74%, or 53 of the 72 development projects that have been implemented by various Local Government Units (LGUs) hosting generating facilities or power plants funded under the Energy Regulations No. 1-94 (ER No. 1-94) Program. These inspections are in line with DOE Secretary Alfonso G. Cusi’s policy issuances, DC2018-08-0021, which redirects the administration of the ER No. 1-94 Program to LGUs, as well as the first Implementation Advisory Letter on the guidelines for the direct remittance of financial benefits by Generation Companies to their host communities starting CY 2019.

Under the ER No. 1-94 or Benefits to Host Communities Program, pertinent LGUs are entitled to avail of financial benefits for hosting energy resources and/or energy-generating facilities within their territorial jurisdiction.

The Program provides for Generation Companies and/or energy resource developers to set aside PhP 0.01 per kilowatt-hour of their total electricity sales as financial benefits to host communities, which shall be allocated to three types of funds: one-half of one centavo for the Electrification Fund of the concerned Distribution Utilities; one-fourth of one centavo for the Development and Livelihood Fund; and another one-fourth of one centavo for the Reforestation, Watershed Management, Health and/or Environment Enhancement Fund of the host LGUs.

“The Department has been working hard to complete the close-out of ER No. 1-94 projects so that the succeeding financial benefits will benefit the host communities directly,” Sec. Cusi said.

He further added that the direct remittance of financial benefits to host communities would lead to a considerable increase in public sector projects to be realized by host LGUs and their Distribution Utilities, which would redound to the benefit of their respective constituents and customers.

EPIMB-REAMD has been tasked to complete the inspection of the remaining 19 ER No. 1-94 projects within 2019.