Friday, December 27, 2019

NEA asks DBM to extend P1-billion aid to typhoon-affected electric cooperatives


By Samuel P. Medenilla -

The National Electrification Administration (NEA) is asking the Department of Budget and Management (DBM) to extend financial assistance to 27 electric cooperatives (ECs) affected by the recent Typhoon Tisoy.
NEA Administrator Edgardo Masongsong said damage to affected EC’s distribution facilities has reached nearly P1 billion. He appealed to the DBM for the release of funds for the rehabilitation and restoration of electricity service.
“To address the urgency of the need to rehabilitate and restore electric service in the coverage areas of these ECs, the NEA and its partner ECs are requesting, or appealing, for the much needed financial assistance in the form of subsidy or grant from the national government in the amount of P1 billion,” Masongsong said.
As of December 17, NEA Disaster Risk Reduction and Management Department (DRRMD) reported that the initial cost of damage to the ECs’ infrastructure from the typhoon has ballooned to an estimated P899.632 million.
The Sorsogon 1 Electric Cooperative Inc. (Soreco 1) incurred the most damage at P137.500 million, followed by Albay Electric Cooperative Inc. (Aleco) at P134.487 million, and Oriental Mindoro Electric Cooperative Inc. (Ormeco) at P123.421 million.
Damage to Northern Samar Electric Cooperative, Inc. (Norsamelco) was pegged at P88.058 million, Masbate Electric Cooperative Inc. (Maselco) at P56.600 million, and Sorsogon 2 Electric Cooperative (Soreco 2) at P55.441 million.
The NEA chief explained that the ECs’ internally generated fund is not enough since their rate structure as approved by the Energy Regulatory Commission (ERC) does not include any provision for capital expenditure requirement attributable to the damage caused by calamities.
Masongsong earlier disclosed that the state-run agency cannot implement at the moment Republic Act 11039, also known as Electric Cooperatives Emergency and Resiliency Fund (ECERF) Act because the initial P750-million funding for its implementation has yet to be provided.
Meanwhile, the NEA chief sees the 80-percent restoration of power in all affected areas by December 20.
The NEA DRRMD reported an estimated 514,570 households in 17 provinces in Luzon and the Visayas covered by 27 ECs are still without electricity based on the figures submitted by the power distribution utilities as of Tuesday.
Power was fully restored to 180 typhoon-hit cities and municipalities. Service is partially restored to 96 cities and municipalities, while restoration is still ongoing for the remaining 36 cities and towns.
Typhoon Tisoy made landfall in Gubat, Sorsogon last December 2.

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