NEA Media Release


NEA calls for dialogue between DOE, ECs to resolve issues

05-March-2019

The National Electrification Administration (NEA) has called for dialogue between the electric cooperatives (ECs) and the Department of Energy (DOE) to find a mutually acceptable resolution to rural electrification policy issues. NEA Administrator Edgardo Masongsong's statement came a day after the Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA), the umbrella group of 121 ECs in the country, called for the resignation of Energy Secretary Alfonso Cusi over alleged "abuse of power." In a statement issued on Tuesday (March 5), Masongsong emphasized the crucial role the energy sector plays in a rapidly developing country with a growing population, workforce, and economy. "Recognizing this, the 2017-2022 Philippine Development Plan states that one of the strategies to provide our people with 'matatag, maginhawa, at panatag na buhay' is accelerating infrastructure development––a key area of which is to develop the energy sector, specifically to 'encourage competition to drive down electricity costs; ensure efficient transmission of electricity various load centers and interconnect the entire grid; and prioritize provision of electricity services to the remaining unelectrified off-grid, island, remote, and last-mile communities',” he said. "It is in this context that the National Electrification Administration calls on the leaders of our electric cooperatives and the officials of the Department of Energy to engage in a dialogue and find bases of unity and work together to reconcile their respective policy positions on issues that are relevant to an industry that affects the lives of 104 million Filipinos," he added. As such, Masongsong urged both PHILRECA and DOE to resolve differences through a constructive dialogue. "Differences of opinion are part and parcel of any vibrant and dynamic democracy. But the developed democracies in the world have shown us that the path to prosperity lies in the ability of a nation's leaders to sit down and work for the collective welfare of people they have sworn to serve. It is my hope that the DOE and our ECs can do the same," the NEA chief said. Recently, PHILRECA passed a resolution declaring Secretary Cusi "persona non-grata," and calling for his immediate resignation over what they claimed "biases and pre-conceived negative notions against electric cooperatives, preference to private for-profit corporations, and abuse of power." The group likewise pointed out Secretary Cusi's "lack of genuine knowledge regarding rural electrification and cooperativism, and failure to recognize the success and gains of rural electrification and development not just because of the government through the National Electrification Administration but most especially because of electric cooperatives commissioned and considered implementing arm of the government." The resignation call follows the initial endorsement of Secretary Cusi last January 11 to the House of Representatives through Speaker Gloria Macapagal Arroyo the cancellation of franchises of 17 ECs, but eventually withdrawn such recommendation. In expressing its opposition, PHILRECA described the move to cancel the franchises of 17 power co-ops as unjust and biased and was done without prior consultation with the concerned ECs. At the same time, the group said the recommendation has put the EC sector in a negative light. ###


NEA to DOE, Congress: ‘Let the electric cooperatives live’

04-March-2019

At the risk of sounding like it is moving towards a different direction, the National Electrification Administration (NEA) officially called on the leaderships of both Houses of Congress and the Department of Energy (DOE) to keep the existence of electric cooperatives (ECs) in the country. NEA Administrator Edgardo Masongsong made the appeal in an interview aired over the weekend on People’s Television (PTV-4), where he discussed at length the crucial role of non-profit distribution utilities in the continuing implementation of the rural electrification program. “I request the government, especially the Congress and the Department of Energy to revisit their position; to give chance to the electric cooperatives because, at the end of the day, these electric cooperatives are products of a program of the government, the rural electrification program, which for the last 50 years have succeeded in energizing the country,” Masongsong said. This categorical statement comes on the heels of the controversial endorsement of DOE Secretary Alfonso Cusi for the revocation of the franchises of 17 ECs to House Speaker Gloria Macapagal-Arroyo, which, although it was later on withdrawn, has unnecessarily put the entire rural electrification sector in a negative light. Masongsong clarified that the NEA did not submit the list for those ECs to be put on the chopping block, but only to inform the DOE—its mother agency—of their current status of operations amid recent allegations of inefficiency. “In fairness sa DOE Secretary, meron tayong sinubmit na listahan of 17 electric cooperatives on their status as electric cooperatives, status of their operations… But, for the record, I did not recommend (the revocation of their franchises),” he said. Masongsong reiterated that out of the 121 ECs currently operating in the country, only 10 are considered ‘ailing’—either they are financially bankrupt or technically incompetent—but the NEA is doing everything in its power to help turn them around. He cited as example the case of Camarines Sur III Electric Cooperative, Inc. (CASURECO-III), which used to swim in over a billion of debts, but has since improved when the NEA stepped in to initiate some reforms. “Kasama ang CASURECO-III (doon) sa 17, pero mula ‘nung tinakeover natin as early as January 2017, (it has improved). Dati may utang na P1.2-billion, ngayon P584-million na lang. Ibig sabihin, nagawa natin ang trabaho natin,” Masongsong explained. Echoing recent media reports, he said the remaining debts of the once troubled co-op has been eased through a special payment agreement with the Power Sector Assets and Liabilities Management Corporation. This is on top of the P624-million loan CASURECO-III secured from the Development Bank of the Philippines to help improve its services. “Nagpirmahan na ng kontrata. Ibig sabihin ngayon ang electric cooperative na ‘yan ay bankable dahil viable na siya. Dati ‘nung tinakeover namin ang revenue nasa P60-million (lang), ngayon almost P100-million a month (na),” the administrator noted. As an attached agency of the DOE, the NEA continues to abide by the direction of Cusi in the Energy Family under the current administration insofar as achieving the total electrification objective is concerned, Masongsong said. For that to happen, the national government must consciously recognize the significant contributions of the ECs and their member-consumer-owners on rural development and its impact on nation-building. Masongsong explained that when he assumed the NEA leadership, he has fashioned his 7-point electrification agenda precisely to help the Duterte administration achieve its ‘Ambisyon Natin’ 2040 policy statement. The former EC general manager and party-list representative emphasized that sustainable rural development does not happen only by lighting up the last mile of households, but by ensuring that communities in these areas no longer suffer from abject poverty due to political insurgency, among other concerns. “The rural electrification program is not over until the farthest households and villages have been energized and it won’t be because our targets are constantly moving. Rural electrification is about sustainable social and economic development. We have to keep working,” Masongsong said in a separate statement. ###


NEA Power Task Force Election 2019 formed

28-February-2019

The National Electrification Administration (NEA) has created a task force that will ensure the adequate and reliable power supply in areas covered by electric cooperatives (ECs) before, during and after the May 13, 2019 National and Local Elections. NEA Administrator Edgardo Masongsong recently issued Office Order No. 2019-033, establishing the "NEA Power Task Force Election 2019." This is in compliance to the Commission on Elections (Comelec) Resolution No.10471 deputizing, among others, the NEA in connection with the conduct of the May 13 National and Local Elections. As provided for in the resolution, the NEA is commissioned to "provide and maintain stable and continuous nationwide electric power requirements from the start of voting, until the termination or conclusion of the canvassing of votes and the proclamation of the winning candidates." In a statement, Administrator Masongsong emphasized the critical value of electricity service in the conduct of elections. "The upcoming elections will utilize power-dependent technologies and requires reliable delivery of electricity service. The NEA, as Comelec's partner agency, will ensure that the conduct of the polls and post-election activities are smooth, unhampered and secure," the NEA chief said. The NEA Power Task Force Election 2019 is composed of the Engineering Department, Disaster Risk Reduction Management Department (DRRMD), Corporate Communications and Social Marketing Office (CCSMO), Information Technology and Communication Services Department (ITCSD), and Human Resources and Administration Department (HRAD). It will be overseen by Deputy Administrator for Technical Services Engr. Artis Nikki Tortola. Meanwhile, Engineering Department manager Engr. Ferdinand Villareal and DRRM acting department manager Engr. Federico Villar, Jr. are assigned as the overall team leader and assistant overall team leader, respectively. The task force shall render 24-hour operation to help ensure that the electric cooperatives will provide adequate and reliable electric power in their respective coverage areas before, during, and immediately after the May 13 National and Local Elections. ###


NEA, DICT urge power co-ops, cable operators, and telcos to collaborate to expedite NBP rollout

17-February-2019

Electric cooperatives (ECs) are urged to form partnerships with cable television service providers and telecommunication companies to advance the government's National Broadband Plan (NBP), which aims to "significantly" improve the internet service in the country. Speaking at the NBP forum at the Grand Meng Seng Hotel in Davao City on February 15, Acting Secretary Eliseo Rio, Jr. of the Department of Information and Communications Technology (DICT) said the collaboration would not only advance the program, but would also "benefit all parties and stakeholders." Rio pushed for the "convergence" of all industry stakeholders specifically the local cable television operators, electric cooperatives and telecommunication companies, not only to settle existing concerns among themselves, but to create more opportunities to help the government realize the goal of "inclusivity in the access to interconnectivity." "With the NBP, we hope to create a new class of OFWs, not the kind who need to leave the country for jobs abroad. Soon, as online trade and businesses flourish along with English language teachers for our Asian neighbors, Online Filipino Workers will rise and contribute more to the economy," the DICT chief said. Cognizant of the prevailing issues among co-ops and cable tv operators indirectly affecting the implementation of the NBP in the rural areas, NEA Administrator Edgardo Masongsong urged all parties to "approach the issues with eyes opened to the opportunities the NBP offers, and with the good of the greater number in mind." "Interconnectivity will open doors of opportunity for our people. You should not allow the issues between you to drag the NBP down. The good of the greater number is bigger than what besets you," the NEA Chief told those in attendance. Masongsong also echoed the call of DICT for convergence among stakeholders as "the EPIRA Law allows for more elbow room for electric cooperatives to enter into partnerships and collaborative engagements with other industry participants." The NBP forum organized by the NEA was attended by Mindanao-based co-ops, cable operators, and representatives from DC Tech and other local technology providers for the remote metering, billing and teleconferencing needs of electric cooperatives in Mindanao and some parts of Luzon. It was aimed to provide a platform for ECs to discuss and address issues related to the implementation of the "last mile" of the program. Also present during the forum were NEA Deputy Administrator Nikki Artis Tortola, Engr. Roderick Padua, manager of the NEA Information Technology and Communication Services Department (ITCSD), DICT Assistant Secretaries Ivin Ronald Alzona and Alan Silor, and Project Manager Alona Isidro. Rhett Roswell Mislang of the Energy Regulatory Commission was also there to provide valuable insights on the emerging developments on the NBP and their implications on the regulatory environment. On August 17, 2018, DICT, NEA and the Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) entered into a memorandum of understanding (MOU) "to realize the objectives of the NBP, including but not limited to the co-use of fiber optic cables." Under the agreement, the NEA and PHILRECA will coordinate with the ECs regarding the NBP project. The DICT, on the other hand, will be allowed to access the ECs' existing nodes so that it may link with other government agencies. On June 8, 2018, the DICT, in its tripartite agreement with the National Grid Corporation of the Philippines (NGCP) and the National Transmission Corp. (TransCo), was given the right to use their dark fiber network. ###


NEA respects power co-ops' right to air grievances, urges dialogue to address issues

15-February-2019

The National Electrification Administration (NEA) on Friday said it respects the right of the electric cooperatives (ECs) to engage in peaceful protest. The NEA issued the statement after ECs in different parts of the country took part in a "Black Valentine's Day" protest on Thursday (February 14) against the Department of Energy (DOE) over what they called "unfair treatment." "The NEA respects the right of our electric cooperatives to freely express their sentiments, it being a bulwark of democracy and an essential element against abuse of power," NEA Administrator Edgardo Masongsong said. "Rest assured that the agency under the present government will continue to examine regulatory issuances to ensure that the policy environment is fair, just and equitable to all stakeholders and responsive to the sentiments of the member-consumer-owners," he added. The NEA chief likewise encouraged the ECs to "remain steadfast and keep their focus on the issues at hand. Let our minds be open to dialogue as a potent venue to address our concerns, seek redress, and exact justice and fairness." Officials and employees of different ECs, led by the Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA), wore black shirts on Valentine's Day and held signs that read "We denounce all injustices and unfair treatment of electric cooperatives. We are not backing down. We are standing our ground." The protest came after Energy Secretary Alfonso Cusi recommended last January 11 to House Speaker Gloria Macapagal Arroyo the cancellation of franchises of 17 ECs, but later on recalled said recommendation, stating the "need to further evaluate and assess the present status and performance" of these ECs. PHILRECA, a non-stock, non-profit national organization comprised of 121 ECs operating in the country, opposed the move to cancel the franchises of 17 power co-ops, saying "this unjust and biased recommendation was made without prior consultation with the concerned ECs." These ECs are Abra Electric Cooperative (Abreco), Albay Electric Cooperative (Aleco), Basilan Electric Cooperative, Inc. (Baselco), Camarines Sir III Electric Cooperative, Inc. (Casureco III), Davao del Norte Electric Cooperative, Inc. (Daneco), First Catanduanes Electric Cooperative, Inc. (Ficelco), Lanao del Sur Electric Cooperative, Inc. (Lasureco), Maguindanao Electric Cooperative, Inc. (Magelco), Masbate Electric Cooperative, Inc. (Maselco), Occidental Mindoro Electric Cooperative, Inc. (Omeco), Oriental Mindoro Electric Cooperative, Inc. (Ormeco), Palawan Electric Cooperative (Paleco), Pampanga III Electric Cooperative, Inc. (Pelco III), Sulu Electric Cooperative, Inc. (Suleco), Tawi-Tawi Electric Cooperative, Inc. (Tawelco), Ticao Island Electric Cooperative, Inc. (Tiselco), and Zamboanga City Electric Cooperative, Inc. (Zamcelco). ###


Long wait for CapEx approval over; reliable power in sight for Palaweños

02-February-2019

The long wait was finally over for the Palawan Electric Cooperative (Paleco) after getting the green light to implement its five-year capital expenditures (CapEx), majority of which are geared to meet the demand of Palaweños for more stable and reliable electricity in the province. Twenty-five CapEx projects out of the 29 applied for by Paleco for the years 2017 to 2021 were approved by the Energy Regulatory Commission (ERC) in the total amount of P1.082 billion, lower from its P1.161-billion original submission. Four proposed projects were disapproved. "The Application filed by Palawan Electric Cooperative for approval of its capital projects for the years 2017 to 2021 and for authority to secure loan, with prayer for provisional authority, is hereby resolved," the ERC stated in its decision dated November 6, 2018, and docketed on December 7, 2018. Paleco filed its application for CapEx approval on May 9, 2017. Among the approved CapEx projects were the installation of two new 5 MVA substations in Puerto Princesa City, and a Supervisory Control and Data Acquisition (SCADA) System. Also included were the acquisition of several major equipment, such as distribution transformers, kilowatt-hour meters, low voltage conductors, and service drop wires. Paleco was directed by the ERC to conduct competitive biddings for the purchase of major materials in the implementation of its CapEx projects. It was also authorized to secure a loan amounting to P263.708 million to finance its projects. The power distribution utility intended to avail of loans from the National Electrification Administration (NEA) to finance several of its proposed projects. The proposed loans shall be paid within 15 years with an annual interest rate of 6 percent. Welcoming the approval of the CapEx, Paleco Project Supervisor and Acting General Manager Engr. Nelson Lalas said they would prioritize the implementation of the projects that would immediately contribute to the improvement of the electricity service to Palaweños, such as the installation of new substations and SCADA system. Power assessment Palawan's grid has an installed dependable generating capacity of 84.9 megawatts (MW), sufficient to supply the province's power demand of 46 MW. This is on top of the 7.4 MW for its off-grid. But the frequency of power interruptions has been a cause of concern for Palaweños since 2017. This concern is part of the issues that the NEA wants to address. Therefore, on December 10, 2018, the agency assigned a project supervisor and acting manager to oversee the operations of Paleco. This was following Malacañang's directive to solve the province's power woes. Immediately upon assumption of office, Lalas conducted an initial assessment of the current power situation in Palawan. In his report submitted to the NEA, Lalas attributed the frequent power outages to a number of factors, including failures in generation, transmission and distribution systems. Lalas said the occurrence of frequent line faults were due to frequency, voltage and some dilapidated generator sets owned by the power suppliers. He also identified trees or other vegetation near the power distribution lines of Paleco as the major contributor to outages. To address this issue, Paleco has intensified the conduct of right-of-way clearing in its entire coverage area, which will finish in February this year. At present, the power utility has completed 60 percent of the total vegetation areas subject for clearing. "The ongoing massive clearing of trees in the entire coverage area has a big impact in reducing line faults. To date, frequent distribution line trippings have been reduced," Lalas, in his assessment report, said. Power outages were also partly caused by the existence of undersized and old backbone line conductors, substandard utility poles with uncoordinated sectionalizing devices and poor grounding system. To ensure that the supply of Paleco's energy requirements is reliable and adequate, Lalas also met with the three power producers namely, DMCI Power Corp., Delta P Inc., and Palawan Power Generation Inc., as well as the National Power Corp. - Small Power Utility Group (NPC-SPUG). "[We discussed] problems about the dispatch and as regards the protocol. I also emphasized during that meeting that the power interruption is not only [a problem of] Paleco but theirs as well," Lalas said. NEA chief visits Paleco To assess the power situation first hand, NEA Administrator Edgardo Masongsong traveled to Puerto Princesa City last January 25. During the day, Masongsong met with Paleco Board chairman Jeffrey Tan-Endriga and Engr. Lalas, discussing the progress on strategies and actions made so far to improve the reliability and efficiency of electricity service. Later, the NEA chief attended the "Gabi ng Parangal" in celebration of the 45th Founding Anniversary of Paleco held at AKC Country Home, Puerto Princesa City. In his speech, he strongly urged them to help the agency in its pursuit to promote and protect the gains of rural electrification amidst challenges. Paleco is responsible for the electricity distribution in Puerto Princesa City and the Municipalities of Aborlan, Narra, Brooke's Point, Sofronio Espanola, Cuyo, Magsaysay, Quezon, Roxas, Taytay, El Nido, Araceli, San Vicente, Bataraza, Rizal, Balabac, Cagayancillo, Agutaya and Dumaran. Classified as a Mega Large EC and rated AA by the NEA based on the 2017 EC Overall Performance Assessment, Paleco has 137,277 consumer connections as of June 2018. ###


Long wait for CapEx approval over; reliable power in sight for Palaweños

02-February-2019

The long wait was finally over for the Palawan Electric Cooperative (Paleco) after getting the green light to implement its five-year capital expenditures (CapEx), majority of which are geared to meet the demand of Palaweños for more stable and reliable electricity in the province. Twenty-five CapEx projects out of the 29 applied for by Paleco for the years 2017 to 2021 were approved by the Energy Regulatory Commission (ERC) in the total amount of P1.082 billion, lower from its P1.161-billion original submission. Four proposed projects were disapproved. "The Application filed by Palawan Electric Cooperative for approval of its capital projects for the years 2017 to 2021 and for authority to secure loan, with prayer for provisional authority, is hereby resolved," the ERC stated in its decision dated November 6, 2018, and docketed on December 7, 2018. Paleco filed its application for CapEx approval on May 9, 2017. Among the approved CapEx projects were the installation of two new 5 MVA substations in Puerto Princesa City, and a Supervisory Control and Data Acquisition (SCADA) System. Also included were the acquisition of several major equipment, such as distribution transformers, kilowatt-hour meters, low voltage conductors, and service drop wires. Paleco was directed by the ERC to conduct competitive biddings for the purchase of major materials in the implementation of its CapEx projects. It was also authorized to secure a loan amounting to P263.708 million to finance its projects. The power distribution utility intended to avail of loans from the National Electrification Administration (NEA) to finance several of its proposed projects. The proposed loans shall be paid within 15 years with an annual interest rate of 6 percent. Welcoming the approval of the CapEx, Paleco Project Supervisor and Acting General Manager Engr. Nelson Lalas said they would prioritize the implementation of the projects that would immediately contribute to the improvement of the electricity service to Palaweños, such as the installation of new substations and SCADA system. Power assessment Palawan's grid has an installed dependable generating capacity of 84.9 megawatts (MW), sufficient to supply the province's power demand of 46 MW. This is on top of the 7.4 MW for its off-grid. But the frequency of power interruptions has been a cause of concern for Palaweños since 2017. This concern is part of the issues that the NEA wants to address. Therefore, on December 10, 2018, the agency assigned a project supervisor and acting manager to oversee the operations of Paleco. This was following Malacañang's directive to solve the province's power woes. Immediately upon assumption of office, Lalas conducted an initial assessment of the current power situation in Palawan. In his report submitted to the NEA, Lalas attributed the frequent power outages to a number of factors, including failures in generation, transmission and distribution systems. Lalas said the occurrence of frequent line faults were due to frequency, voltage and some dilapidated generator sets owned by the power suppliers. He also identified trees or other vegetation near the power distribution lines of Paleco as the major contributor to outages. To address this issue, Paleco has intensified the conduct of right-of-way clearing in its entire coverage area, which will finish in February this year. At present, the power utility has completed 60 percent of the total vegetation areas subject for clearing. "The ongoing massive clearing of trees in the entire coverage area has a big impact in reducing line faults. To date, frequent distribution line trippings have been reduced," Lalas, in his assessment report, said. Power outages were also partly caused by the existence of undersized and old backbone line conductors, substandard utility poles with uncoordinated sectionalizing devices and poor grounding system. To ensure that the supply of Paleco's energy requirements is reliable and adequate, Lalas also met with the three power producers namely, DMCI Power Corp., Delta P Inc., and Palawan Power Generation Inc., as well as the National Power Corp. - Small Power Utility Group (NPC-SPUG). "[We discussed] problems about the dispatch and as regards the protocol. I also emphasized during that meeting that the power interruption is not only [a problem of] Paleco but theirs as well," Lalas said. NEA chief visits Paleco To assess the power situation first hand, NEA Administrator Edgardo Masongsong traveled to Puerto Princesa City last January 25. During the day, Masongsong met with Paleco Board chairman Jeffrey Tan-Endriga and Engr. Lalas, discussing the progress on strategies and actions made so far to improve the reliability and efficiency of electricity service. Later, the NEA chief attended the "Gabi ng Parangal" in celebration of the 45th Founding Anniversary of Paleco held at AKC Country Home, Puerto Princesa City. In his speech, he strongly urged them to help the agency in its pursuit to promote and protect the gains of rural electrification amidst challenges. Paleco is responsible for the electricity distribution in Puerto Princesa City and the Municipalities of Aborlan, Narra, Brooke's Point, Sofronio Espanola, Cuyo, Magsaysay, Quezon, Roxas, Taytay, El Nido, Araceli, San Vicente, Bataraza, Rizal, Balabac, Cagayancillo, Agutaya and Dumaran. Classified as a Mega Large EC and rated AA by the NEA based on the 2017 EC Overall Performance Assessment, Paleco has 137,277 consumer connections as of June 2018. ###


Electrification projects in 2018 funded through NEA loan facility

18-January-2019

Several electrification projects in 2018 ranging from installation of new substations, construction of distribution lines, to rehabilitation of mini-hydro power plants were financed through loans offered by state-run National Electrification Administration (NEA). Data from the NEA Accounts Management and Guarantee Department (AMGD) showed P2.084 billion worth of loans, including calamity loans, were extended to 62 electric cooperatives (ECs) in 2018. Bulk of the loans, amounting to P1.279 billion, were used to bankroll several capital expenditure (CapEx) projects of 50 ECs. These projects include the installation and upgrading of power substations accounting for P372.597 million; construction of sub-transmission and distribution lines at P337.143 million; purchase of kwh meters, other materials and replacement of dilapidated poles at P178.831 million; and rehabilitation of mini-hydro power plants at P113.131 million. "The year 2018 was remarkable in terms of loan availment as the agency reached its target of P1.7 billion within the 3rd Quarter of last year," NEA Administrator Edgardo Masongsong said. "We have been very stringent and subjected the applications of electric cooperatives to scrutiny. But as long as these loans are intended for the improvement of the EC's operational efficiency, financial viability or increase their capacity to rehabilitate the utilities, the NEA did not think twice to give due course to these loan applications," the NEA Chief added. Meanwhile, a total of P167-million were borrowed by four ECs for the procurement of modular generator sets. These are the Misamis Oriental I Electric Cooperative, Inc., Misamis Oriental II Electric Cooperative, Inc., Sultan Kudarat Electric Cooperative, Inc., and Agusan del Norte Electric Cooperative, Inc. Working capital loans worth P374 million went to nine other ECs, namely the Abra Electric Cooperative, Occidental Mindoro Electric Cooperative, Inc., Marinduque Electric Cooperative, Inc., Sorsogon I Electric Cooperative, Inc., Aklan Electric Cooperative, Inc., Camotes Electric Cooperative, Inc., Negros Oriental I Electric Cooperative, Inc., Misamis Oriental II Electric Cooperative, Inc., and Nueva Ecija II – Area 2 Electric Cooperative, Inc. Also, the NEA provided the Quezon I Electric Cooperative, Inc. P20 million to finance its monthly shortfall on the settlement of power accounts with generation company. The Zamboanga City Electric Cooperative, Inc. availed of the stand-by credit loan facility for power accounts amounting to P145 million to strengthen its creditworthiness with generation companies. In addition, the NEA also extended P99 million in calamity loans to six other ECs to cover the cost of repair and rehabilitation of their respective distribution facilities that were damaged by previous typhoons Auring, Lawin, Urduja and Vinta, and other calamities. These power co-ops were Isabela II Electric Cooperative, Biliran Electric Cooperative, Inc., Lanao del Norte Electric Cooperative, Inc., First Bukidnon Electric Cooperative, Inc., Lanao del Sur Electric Cooperative, Inc., and Surigao del Norte Electric Cooperative, Inc. Loan availment by the ECs is included in the Fast-Track Lane being implemented by the NEA. The processing time is 24 working days for regular loans, 13 days for short-term loans, and seven days for calamity loans. ###


NEA, ECs illuminate 1,900 more rural communities in 2018

17-January-2019

State-run National Electrification Administration (NEA) and its partner electric cooperatives (ECs) proved their commitment to rural electrification was no lip service as more sitios across the country are now able to enjoy the benefits of electricity. As of December 31 last year, the NEA and ECs were able to connect to the grid a total of 1,931 sitios under the Sitio Electrification Program (SEP). This is significantly higher than the targeted 1,817 sitios for 2018. Of the electrified sitios, 977 are located in Mindanao, 493 in Visayas, and 461 in Luzon. This fiscal year 2019, the NEA targets to energize 775 more sitios nationwide. The NEA is paying special attention to energizing the rural areas in Mindanao because it has the lowest electricity access rate. The sitio energization level in Mindanao is at 77 percent as of November 2018. The overall target is to attain 100-percent electrification of households by 2022. For remote and isolated communities without grid access, the NEA is encouraging the ECs to pursue the use of mini-grid system and distributed generation. The agency also committed moving towards promoting renewable energy. Thus, it has allocated P165 million for its renewable energy projects this 2019, which include the installation of 5,000 solar home systems. "Electric cooperatives are rising to the challenge of intensified electrification of remote communities while along the process are mindful of climate realities," NEA Administrator Edgardo Masongsong said. "As we move towards fulfilling our mandate of full electrification of the nation, we also ensure that our energy needs are responsive to calls for cleaner power sources and lesser carbon footprint," he added. ###


NEA: EC energy sales rose 4 percent in Q2 of 2018

16-January-2019

Electric cooperatives (ECs) nationwide posted a 4-percent growth in energy sales in the second quarter of 2018 compared to the first quarter of the same year, based on the data gathered by the National Electrification Administration (NEA). Report from the NEA Information Technology and Communication Services Department (ITCSD) showed that ECs' sales volume went up to 5,136 gigawatt hours (GWh) from April to June 2018. Engr. Roderick Padua, Department Manager of ITCS, said this is 4-percent higher from 4,924 GWh sales posted by the ECs in the first quarter last year. Of the total, 2,610 GWh was registered in Luzon, 1,133 GWh in Visayas, and 1,393 GWh in Mindanao. The state-run agency attributed the increase to the higher electricity consumed by residential sector, which accounted for 2,670 GWh or 52 percent, followed by the commercial sector at 1,130 GWh or 22 percent. The industrial sector came in at 976 GWh or 19 percent, public buildings at 257 GWh or 5 percent, and other consumers at 103 GWh or 2 percent. As a result of the increase in GWh sales, the operating revenues of the ECs in the second quarter grew 14 percent to P52.616 billion from the first quarter's P46.126 billion. This brings the total operating revenues of the ECs from January to June 2018 to P98.742 billion. "Fifty-one percent of revenues was derived from residential consumers, 20 percent from commercial, 15 percent from industrial, 5 percent from public buildings and 9 percent from other consumers," Padua said. The NEA has the supervisory powers over all ECs across the country as mandated under Republic Act No. 10531, also known as the "National Electrification Administration Reform Act of 2013.” ###