‘Meralco, some DUs not part of subsidy program’

By Jordeene B. Lagare April 17, 2020
https://www.manilatimes.net/2020/04/17/business/companies/meralco-some-dus-not-part-of-subsidy-program/715033/

The Manila Electric Co. and other privately owned distribution utilities (DUs) are excluded from a subsidy program for electricity consumers in rural areas, the National Electrification Administration (NEA) announced on Thursday.

The announcement came after Cabinet Secretary Karlo Alexei Nograles said about 3 million “lifeline consumers” of electric cooperatives or those who consume less than 50 kilowatts an hour would no longer have to pay their March and April bills.

In a statement, the NEA said the Pantawid Liwanag program would be implemented by electric cooperatives (ECs) that are “nonstock and nonprofit power distribution utilities.”

“Meralco and other privately owned power distribution companies are not involved in this, contrary to the reports of some media entities that have circulated online,” it added.

The program seeks to aid the member-consumer-owners of ECs that are categorized as lifeline consumers during the enhanced community quarantine (ECQ) imposed on Luzon to contain the coronavirus disease 2019 (Covid-10) pandemic.

But the definition of lifeline consumers varies among ECs, as determined by their respective management within the parameters set by state regulatory agencies.

Also, funding the program’s implementation depends on the financial capability of power cooperatives, although some of them have realigned budgets from their certain institutional activities that were cancelled due to the extended ECQ.

“Funds will not be drawn from their capital expenditures or operational expenses and it will not affect their financial obligations to their power suppliers and transmission providers,” the NEA said.

Pantawid Liwanag is a corporate social responsibility program of the rural electrification sector led by the Philippine Rural Electric Cooperatives Association Inc. (Philreca), in cooperation with the National Association of General Managers of Electric Cooperatives.

“We were assured by Philreca that the ECs are finding ways to finance the Pantawid Liwanag program, as they are motivated by their strong desire to help the impoverished communities that they serve and have always counted on them for support in times of crises,” the NEA said.

Power cooperatives are pushing the “philanthropic initiative” in solidarity with the government’s efforts to assist vast number of people in the provinces whose livelihoods and primary sources of income were adversely impacted by Covid-19.