DOE to spend P14.8 billion on rural electrification in 2014

Business Mirror

Published on Tuesday, 13 August 2013 19:20

Written by Jovee Marie N. dela Cruz

THE Department of Energy (DOE) is set to spend P14.8 billion to provide electricity to more households in rural areas nationwide.

Energy Secretary Carlos Jericho Petilla told House Committee of Appropriations during the budget hearing that the total rural electrification budget of P14.8 billion in 2014, including those allocated by the government for the National Electrification Administration (NEA) and the National Power Corp. (NPC), is higher compared to the P12.4-billion budget in 2013.

“[Of the said budget] P12 billion ,or 81.3 percent, is allocated to the NEA,  while P2.8 billion will be spent by the NPC for missionary electrification through the NPC-Small Power Utilities Group,” he said.

He said the electrification will benefit hundreds of barangays and thousands of sitios particularly in the Visayas and Mindanao.

Petilla said rural electrification is supported by President Aquino because it is good for the economy.

The secretary said the government is aggressive toward achieving at least 90-percent household electrification by 2017.

Meanwhile, Petilla said for fiscal year 2014, the DOE is proposing a budget of P4.051 billion, or 6.9 percent, lower than this year’s allocation of P4.351 billion.

He said the lower budget is due to decreased allocation for maintenance and other operating expenses, and capital outlay and net lending, which declined by 22 percent and 2.9 percent, respectively.

The DOE official, however, said the huge chunk of the agency’s budget will be allocated to capital outlay and net lending, followed by maintenance and other operating expense, personal services and financial expenses.

He also said the total programs budget for 2014 will decline by 2.2 percent or P14.8 million.

General administration and support along with operations budget will go up by P23 million and P43.8 million, he said, adding that as a percentage of total new appropriations, the programs budget will constitute 20.2 percent or roughly the same share in 2013.

Meanwhile, he said for 2013-2014, the DOE expects to realize earmarked revenues estimated at P28.77 billion. Earmarked revenues are identified revenues required by law to be used for designated activities, benefits or purposes and must be accounted for separately from the government’s general revenue.

The DOE, in particular, derives these revenues from the fees and revenues collected from the exploration, development and exploitation of energy resources.   source