Power generators boost Iloilo City Covid-19 response fund

By Perla Lena May 8, 2020, 6:47 pm
https://www.pna.gov.ph/articles/1102280

ILOILO CITY – The local government here received its PHP15.32 million Energy Regulations (ER) 1-94 Fund share from the Global Business Power Corp. (GBP) subsidiaries on Friday, just as the city government gears for the economic impact of the coronavirus disease 2019 (Covid-19) pandemic.

In a phone interview, Michael Guanco, community relations officer of GBP, told the Philippine News Agency (PNA) that the remitted share consists of the PHP7.66 million for the electrification fund (EF), PHP3.83 million for the development and livelihood fund (DLF), and PHP3.83 million for the reforestation, watershed management, health, and environmental enhancement fund (RWMHEEF).

It covers the June 2017 to December 2019 collection of the Panay Energy Development Corp. (PEDC) 1 and 2 and Panay Power Corp. (PPC) 1 and 2 and July 2016 to Dec. 25, 2019 of PEDC 3.

“For every kilowatt of power that was purchased from our power plants, one centavo goes to the ER 1-94 fund under the EPIRA Law,” Guanco said, adding that under normal circumstances, 50 percent of the one centavo goes to the electrification fund, 25 percent to DLF and 25 percent to RWMHEEF.

However, Department of Energy (DOE) Circular 2020-004-008 allowed the realignment of the EF to be used for the Covid-19 response of the host local government unit.

Previously, the EF was supposed to be used only by the distribution utility, he added.

“They can use the whole fund as long as we are under (a) state of public health emergency for the purposes of Covid-10 response,” Guanco said.

The local government sought the approval of the DOE secretary before the fund was released.

Out of the total ER 1-94 Fund generated, 25 percent goes to the host barangay, which is Barangay Ingore; 35 percent goes to the host city, Iloilo City; 30 percent to the host province, which is Iloilo province; and the remaining 10 percent goes to the Regional Development Council (RDC) of Western Visayas.

This week, the city government adopted several recommendations of its Local Finance Committee (LCF) to save funds as it continues to respond to the urgent needs of city residents.

The LCF also manifested its concerns to include the expected shortfall in its revenue collections, depletion of quick response fund, and sustenance of programs and projects.

Meanwhile, apart from the release of the ER 1-94 fund share of the city government, the GPBC has also extended relief assistance to the city government and hygiene kits to its 20 adopted barangays in the metropolis. (PNA)