DOE inspects 74% of LGUs power-geneating facilities

By Lenie Lectura - June 14, 2019

https://businessmirror.com.ph/2019/06/14/doe-inspects-74-of-lgus-power-generating-facilities/

THE Department of Energy (DOE) has inspected 53 of the 72 development projects implemented by various local government units (LGUs) hosting generating facilities or power plants funded under the Energy Regulations 1-94 (ER 1-94) Program.

The number represents 74 percent of the development projects under the program.

These inspections conducted by the agency’s Electric Power Industry Management Bureau–Rural Electrification Administration and Management Division (EPIMB-REAMD) are in line with Department Circular 2018-08-0021, which redirects the administration of the ER 1-94 Program to LGUs, as well as the first Implementation Advisory Letter on the guidelines for the direct remittance of financial benefits by power-generation companies (gencos) to their host communities that started this year.

Under the ER 1-94 or Benefits to Host Communities Program, pertinent LGUs are entitled to avail themselves of financial benefits for hosting energy resources and/or energy-generating facilities within their territorial jurisdiction.

The program provides for gencos and/or energy resource developers to set aside P0.01 per kilowatt-hour of their total electricity sales as financial benefits to host communities, allocated to three types of funds: one-half of 1 centavo for the Electrification Fund of the concerned distribution utilities; one-fourth of 1 centavo for the Development and Livelihood Fund; and another one-fourth of 1 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 1-94 projects so that the succeeding financial benefits will benefit the host communities directly,” Energy Secretary Alfonso Cusi said.

EPIMB-REAMD has been tasked to complete the inspection of the remaining 19 ER 1-94 projects within the year.

Cusi added 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.