DOE remits P4 billion to host LGUs for COVID-19 measures

Danessa Rivera (The Philippine Star) - December 20, 2020 - 12:00am
https://www.philstar.com/business/2020/12/20/2064990/doe-remits-p4-billion-host-lgus-covid-19-measures

MANILA, Philippines — The Department of Energy (DOE) has remitted P4.16 billion to local government units (LGUs) hosting energy projects to fight off the impact of the COVID-19 pandemic.

“At the onset of the COVID-19 crisis in the country, we have issued Department Circular 2020-04-0008, to help host LGUs by making available funds to be used in their fight against the pandemic, in accordance with Republic Act 11469, or the ‘Bayanihan to Heal as One Act,’” Energy Secretary Alfonso Cusi said.

The ER 1-94 program is a policy under the Electric Power Industry Reform Act of 2001 (EPIRA), which stipulates that host communities will get a share of P0.01 per kilowatt-hour (kwh) of the total electricity sales of power generation companies operating in its area.

Through DC2018-08-0021, power generation companies are now allowed to directly download the ER 1-94 funds to their host communities. Streamlining the release of funding will ease the process of implementing projects that benefit the host communities.

“The DOE has successfully implemented and monitored the direct remittance of the financial benefits to host communities/region to ensure that ER 1-94 funds are utilized immediately for their development needs and for the delivery of essential health services to mitigate the socio-economic impact of the crisis,” Cusi said.

Meanwhile, as of end-September, initial reports received by the DOE showed that at least P462 million was directly remitted by the concerned generation companies to the host LGUs for their immediate utilization for COVID-19 related responses.

While the country was placed on various stages of lockdowns, the ER 1-94 funds were immediately utilized for feeding programs, including the provision of relief goods; acquisition of personal protective equipment (PPE) for frontline medical workers, medical and other decontamination/disinfecting supplies and equipment including alcohol disinfectants, sanitizers, common medicines, thermo-scanners and contactless thermometers, respirators and/or ventilators, UV Lights; and for constructing or leasing of medical facilities, tents, safe holding areas, including quarantine centers.

The DOE is processing the transfer of an estimated P278 million additional ER funds to various host communities/region.