NEA Media Release


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.” ###


NEA issues rules to implement power distribution infrastructure resiliency fund

10-January-2019

State-run National Electrification Administration (NEA) has issued the implementing rules and regulations (IRR) of Republic Act No. 11039, also known as the "Electric Cooperatives Emergency and Resiliency Fund (ECERF) Act." The 15-page IRR was approved and signed by NEA Administrator Edgardo Masongsong on December 14, 2018. It has already been registered with the Office of the National Administrative Register, University of the Philippines Law Center, and will take effect 15 days after its publication in a newspaper of general circulation. "This is the final step towards the actual enablement of our electric cooperatives versus the ever increasing threat of rogue weather, and a timely capacitation towards mitigation, adaptation and resiliency. Aside from being a feather in the cap of the legislative branch, this is also a testament that our lawmakers are responsible to climate realities," Masongsong said. The IRR provides guidelines for the implementation of RA 11039 enacted in June last year, which seeks an orderly and continuing means of financial assistance to ECs in the form of grants for the immediate restoration or rehabilitation of damaged infrastructure after a fortuitous event or force majeure. The rules apply to all ECs in the country. Under the law, the ECERF will be managed and administered by the NEA. It will have an initial amount of P750 million to be taken from the National Disaster Risk Reduction and Management Fund and will be immediately released to the NEA Quick Response Fund for proper release to qualified ECs. Section 8 of the IRR states that the "concept of 'Build Back Better' shall be integrated in the recovery, rehabilitation and reconstruction phases after a disaster to increase the resilience of the affected ECs' infrastructure." After 50 percent utilization of the fund, the NEA shall seek for the allocation of a supplementary budget from NDRRMC Fund equivalent to at least the initial fund allocation, subject to the approval of the President. It also authorizes the NEA to deduct Engineering and Administrative Overhead expenses which are limited to: pre-construction activities; construction project management; testing and quality control; acquisition, rehabilitation and repair of related equipment and parts; and contingencies in relation to pre-construction activities. Meanwhile, the IRR states that donations in the form of funds, whether local or international, intended for the restoration and rehabilitation of the ECs' damaged infrastructure shall be received by the NEA, subject to existing auditing rules and regulations. "The NEA shall designate an exclusive account for such donations and shall be utilized exclusively for such restoration or rehabilitation," Section 9 of the IRR states. The NEA shall also receive donations in the form of materials and equipment but directly deliver to the designated recipient EC or ECs. In case the donor did not designate a recipient, the NEA shall have the discretion to choose among the affected ECs taking into consideration the severity of the damage. The IRR also outlines the powers and functions of the NEA in addition to its current mandate, which include formulating policies and coordinating the implementation of all activities of the ECs relative to emergency and resiliency management. It also tackles the responsibilities of the ECs in addition to their mandate to implement the rural electrification program. These include ensuring the preparedness and mitigation measures to protect the adverse impact of any fortuitous event or force majeure. The ECs shall also ascertain the ability of their manpower to undertake emergency response for the immediate restoration or rehabilitation of their damaged infrastructure after a fortuitous event or force majeure. In addition, the ECs are required to submit to the NEA their respective comprehensive and integrated disaster management programs, such as Vulnerability and Risk Assessments, Resiliency Compliance Plans, and Emergency Response Plans. Failure to submit said assessment and plans to the NEA shall bar the ECs from accessing the ECERF. Moreover, Section 12 of the IRR states the NEA, in addition to its present restructuring plan, shall establish its Disaster Risk Reduction and Management Department with the following responsibilities: - Assess, develop and implement disaster risk reduction management plan covering preparedness, damage assessment, rehabilitation and restoration of network and non-network facilities of ECs; - Provide technical support and assistance to ECs in the preparation and implementation of disaster risk reduction and management plans; - Supervise and coordinate rehabilitation and restoration activities in the event of a major disaster or after the occurrence of a fortuitous event or force majeure; - Ensure that the NEA and the ECs are prepared to response and manage any type of crisis whether man-made or natural; - Directly monitor the strict implementation of the objectives and provisions of the ECERF Act. ###


NEA issues rules to implement power distribution infrastructure resiliency fund

10-January-2019

State-run National Electrification Administration (NEA) has issued the implementing rules and regulations (IRR) of Republic Act No. 11039, also known as the "Electric Cooperatives Emergency and Resiliency Fund (ECERF) Act." The 15-page IRR was approved and signed by NEA Administrator Edgardo Masongsong on December 14, 2018. It has already been registered with the Office of the National Administrative Register, University of the Philippines Law Center, and will take effect 15 days after its publication in a newspaper of general circulation. "This is the final step towards the actual enablement of our electric cooperatives versus the ever increasing threat of rogue weather, and a timely capacitation towards mitigation, adaptation and resiliency. Aside from being a feather in the cap of the legislative branch, this is also a testament that our lawmakers are responsive to climate realities," Masongsong said. The IRR provides guidelines for the implementation of RA 11039 enacted in June last year, which seeks an orderly and continuing means of financial assistance to ECs in the form of grants for the immediate restoration or rehabilitation of damaged infrastructure after a fortuitous event or force majeure. The rules apply to all ECs in the country. Under the law, the ECERF will be managed and administered by the NEA. It will have an initial amount of P750 million to be taken from the National Disaster Risk Reduction and Management Fund and will be immediately released to the NEA Quick Response Fund for proper release to qualified ECs. Section 8 of the IRR states that the "concept of 'Build Back Better' shall be integrated in the recovery, rehabilitation and reconstruction phases after a disaster to increase the resilience of the affected ECs' infrastructure." After 50 percent utilization of the fund, the NEA shall seek for the allocation of a supplementary budget from NDRRMC Fund equivalent to at least the initial fund allocation, subject to the approval of the President. It also authorizes the NEA to deduct Engineering and Administrative Overhead expenses which are limited to: pre-construction activities; construction project management; testing and quality control; acquisition, rehabilitation and repair of related equipment and parts; and contingencies in relation to pre-construction activities. Meanwhile, the IRR states that donations in the form of funds, whether local or international, intended for the restoration and rehabilitation of the ECs' damaged infrastructure shall be received by the NEA, subject to existing auditing rules and regulations. "The NEA shall designate an exclusive account for such donations and shall be utilized exclusively for such restoration or rehabilitation," Section 9 of the IRR states. The NEA shall also receive donations in the form of materials and equipment but directly deliver to the designated recipient EC or ECs. In case the donor did not designate a recipient, the NEA shall have the discretion to choose among the affected ECs taking into consideration the severity of the damage. The IRR also outlines the powers and functions of the NEA in addition to its current mandate, which include formulating policies and coordinating the implementation of all activities of the ECs relative to emergency and resiliency management. It also tackles the responsibilities of the ECs in addition to their mandate to implement the rural electrification program. These include ensuring the preparedness and mitigation measures to protect the adverse impact of any fortuitous event or force majeure. The ECs shall also ascertain the ability of their manpower to undertake emergency response for the immediate restoration or rehabilitation of their damaged infrastructure after a fortuitous event or force majeure. In addition, the ECs are required to submit to the NEA their respective comprehensive and integrated disaster management programs, such as Vulnerability and Risk Assessments, Resiliency Compliance Plans, and Emergency Response Plans. Failure to submit said assessment and plans to the NEA shall bar the ECs from accessing the ECERF. Moreover, Section 12 of the IRR states the NEA, in addition to its present restructuring plan, shall establish its Disaster Risk Reduction and Management Department with the following responsibilities: - Assess, develop and implement disaster risk reduction management plan covering preparedness, damage assessment, rehabilitation and restoration of network and non-network facilities of ECs; - Provide technical support and assistance to ECs in the preparation and implementation of disaster risk reduction and management plans; - Supervise and coordinate rehabilitation and restoration activities in the event of a major disaster or after the occurrence of a fortuitous event or force majeure; - Ensure that the NEA and the ECs are prepared to respond and manage any type of crisis whether man-made or natural; - Directly monitor the strict implementation of the objectives and provisions of the ECERF Act. ###


NEA intervenes in Palawan electric co-op to help fix power supply woes

21-December-2018

In a bid to help resolve the power supply woes that have continued to plague the province of Palawan, the National Electrification Administration (NEA) has intervened in the management and operations of the beleaguered Palawan Electric Cooperative (Paleco). NEA Administrator Edgardo Masongsong issued an office order on December 10 designating Engr. Nelson Lalas as Project Supervisor/Acting General Manager (PS/AGM) of Paleco, effective immediately. "In the exigency of the service and pursuant to Sections 4 (e) and (j) of Presidential Decree No. 269 as amended by Section 5 of R.A. 10531, Engr. Lalas is hereby designated as Project Supervisor/Acting General Manager of Palawan Electric Cooperative (Paleco) effective immediately," NEA office order stated. His designation, however, will cease upon the appointment of a regular General Manager, which is subject to confirmation by the NEA. Lalas, as indicated in the NEA office order, is tasked to manage the day-to-day operations of Paleco to ensure the efficient delivery of electric service to the member-consumer-owners. He is likewise mandated to approve or disapprove Board resolutions in consultation with concerned departments in the state-run agency. Lalas is also authorized to sign/countersign checks, withdrawal slips, and other banking transactions, as well as perform other tasks that may be assigned for the purpose of operational efficiency. The NEA intervention comes a month after President Rodrigo Duterte issued a stern warning to local officials to solve the energy issues in Palawan. President Duterte gave Paleco until the end of the year to address the frequent brownouts or he would get a new electricity provider for Palawan if the problem persists. NEA Administrator Masongsong informed the Senate of this latest development on December 13 during the deliberations on the proposed 2019 budget of the state-run agency. Senate Committee on Energy chairman Sen. Sherwin Gatchalian has urged the NEA to take control of the operations of Paleco to ease the burden on Palaweños, who continue to experience rotational brownouts lasting several hours due to the worsening power supply problem. "The temporary solution is for NEA to take over right away, fix the governance problem, release it from capture, contract an independent power producer that will deliver the necessary supply and then later on think about whether to offer it to the private sector or not," the senator said during the budget deliberation. Paleco is the lone power distributor of Puerto Princesa City and 18 municipalities, serving 137,277 consumers or 57 percent of the 240,700 potential connections as of June 2018. "Despite its status as an electric cooperative registered with the Cooperative Development Authority, the NEA will not stand idly by. We will exercise the agency's inherent jurisdiction over Paleco as it has the technical capability to turn things around in Palawan and for Palawan member-consumer-owners," said Masongsong. The NEA has the supervisory powers over 121 ECs nationwide as mandated under R.A. 10531, otherwise known as the "National Electrification Administration Reform Act of 2013." ###


Power situation in Samal Island improves—NEA

19-December-2018

After enduring years of blackouts due to serious damage in the submarine cable of Davao del Norte Electric Cooperative, Inc. (DANECO), the power situation in the Island Garden City of Samal (IGACOS) is now stable, the National Electrification Administration (NEA) has learned. NEA Administrator Edgardo Masongsong received the news from Igacos Mayor Al David Uy himself who, in a letter sent December 13, said that electricity supply has significantly improved in his city as soon as DANECO fixed its underwater powerline. Mayor Uy said the co-op also entered into a power supply agreement with Mindoro Grid Corporation to supplement the electricity requirement of their island through its eight-megawatt modular generator set at Brgy. Mambago-a, Peñaplata. DANECO likewise transferred three units of its own one-megawatt modular generator sets from Compostela Valley to Peñaplata in anticipation of increased power demand and to ensure uninterrupted service for the residents of IGACOS. “The total installed capacity (of the generator sets) is now more than enough to cater the power need or requirement of our booming island even during peak time or season,” the mayor said, acknowledging the efforts of DANECO, which is currently under a NEA task force. “I am just hoping that this will continue and be sustained, coupled with the delivery of an efficient and quality service. This is a continuing challenge to DANECO, Inc. as an electric distribution utility,” Mayor Uy added. Last October 27, the Task Force Duterte-Northern Davao Power addressed similar concerns in the island of Talicud, which is also part of IGACOS, where electricity service is now available for 24 hours daily. Masongsong, for his part, welcomed these developments especially in light of the holiday season when electricity consumption is often expected to rise. He also find it encouraging for the DANECO management, which is still hurdling a lot of challenges in its operations. “This is a breath of fresh air for the member-consumer-owners in Samal Island who rightfully deserve a decent and reliable electricity service, especially with the resurgence of tourism-related economic activity in Mindanao,” the NEA chief said. Mayor Uy ended his letter to the administrator by expressing his “full support” to the continuing reforms of the Task Force Duterte-Northern Davao Power and DANECO so they can “extend better and quality service” to their stakeholders particularly in IGACOS. ###


NEA to LGUs: Settle obligations to ECs, be partners in rural electrification

14-December-2018

National Electrification Administration (NEA) Administrator Edgardo Masongsong made an earnest appeal to Local Government Units (LGUs) to address the matter of unsettled electricity bills owed to electric cooperatives (ECs), stressing that the "unpaid amounts may be used to bring power to hundreds of sitios yet to be served by electricity all over the country." "We emphasize that this plea for payment should not be taken negatively as a reproach. Our LGUs are now in a uniquely privileged position to be instrumental not only in keeping their electric cooperatives financially afloat but in electrifying the unserved and underserved communities in their jurisdictions. They should grab this opportunity to viably partner with electric cooperatives in nation-building," the NEA chief explained. Outstanding financial obligations of local governments to ECs across the country have ballooned to over P1.4 billion, according to latest figures from the agency. Masongsong added the amount was on top of millions in unpaid power bills to ECs incurred by some government institutions, including the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP), as earlier reported by the Department of Energy (DOE). Last October, Energy Secretary Alfonso Cusi appealed to the AFP and PNP to pay their outstanding debts that reached P17 million to 23 ECs. Of the amount, the AFP owed P10.9 million, while the PNP owed P5.3 million. The DOE had signed an agreement with the AFP, PNP, Philippine Coast Guard and the National Bureau of Investigation for the settlement of their outstanding accounts. News of the national government agencies' debts "opened a Pandora's box of sorts," as further investigation revealed that LGUs owed ECs for unpaid use of power, which had remained uncollected for years. As of June 2018, NEA figures showed that LGUs nationwide have estimated outstanding obligations totaling P1.431 billion to 80 power co-ops. Local governments in Luzon owed the biggest amount with P1.034 billion, followed by those in Visayas with P366.617 million and Mindanao LGUs with P30.897 million. "The good Secretary's statements, when he issued that gentle reminder to the armed services of the government to settle their outstanding bills was somehow unprecedented, at least for us in the rural electrification movement. Ikinatuwa ng mga electric cooperative 'yon," Masongsong intimated. "On the NEA's part, we admit the unsettled funds could of course be used to fund and jumpstart electrification projects elsewhere. That's the reason we're making this urgent appeal now to our LGUs and concerned local government executives. This is an opportunity to set good examples by settling their unpaid bills. Non-compliance has adverse effects on the operational performance of their respective power utilities. Let's turn this challenge into an opportunity to achieve greater rural electrification in the countryside," Masongsong stressed. ###


NEA hits new electricity connections target in 10 months

13-December-2018

State-run National Electrification Administration (NEA) has already achieved its target of 460,000 new electricity consumer connections for this year. Latest figures released by the NEA Information Technology and Communication Services Department (ITCSD) show new consumer connections reached 460,954 as of October 2018. This means that the 460,000 corporate target for the whole year has already been met and surpassed two months ahead of schedule. The NEA ITCSD reported that the electric cooperatives (ECs) had registered an average monthly consumer connection of 46,095 from January to October this year. Elated over this achievement, NEA Administrator Edgardo Masongsong commended all the ECs for their hard work and efforts in helping the state-run agency reach the target before year-end. "The fact that we have reached our corporate target ahead of schedule reflects the strong commitment of both the NEA and the ECs to bring power to rural parts of the country, especially those hard-to-reach and poverty-stricken sitios," Masongsong said. The new consumer connections recorded within the 121 ECs' coverage areas brought the total count to 12,647,446 since the government's Rural Electrification Program began in 1969. The NEA, which has supervision over all the ECs in the country, is targeting to raise the total electricity consumer connections to 13 million next year. ###


NEA welcomes bicam approval of EVOSS Act

12-December-2018

State-run National Electrification Administration (NEA) on Wednesday welcomed the passage of the "Energy Virtual One-Stop Shop" bill at the bicameral conference committee level. In a statement, NEA Administrator Edgardo Masongsong said the approval of the measure was very timely, citing the ever increasing energy demand in the country. "This measure comes at a time when energy supply is at its highest demand historically due to increased economic activity in the rural areas and the government's hastened capital outlay expenditure primarily for public infrastructure construction," Masongsong said. "Aside from further satisfying the accelerated power demands being distributed by electric cooperatives in the provinces, this measure when enacted into law will insulate the country from unexpected shocks from the dynamics of the global market and ensure energy security, especially in developing regions of the country," the NEA chief added. Recently, the Senate Committee on Energy and the House Committee on Energy agreed to adopt the Senate Bill No. 1439, which seeks to streamline the permitting process of power generation, transmission and distribution projects through the establishment of an online system called the Energy Virtual One-Stop Shop or EVOSS. Once enacted into law, EVOSS is seen to accelerate the permitting process for energy projects and to cut red tape in the government. Under the bill, EVOSS will be managed by the Department of Energy (DOE) while its operations will be determined and monitored by a Steering Committee. Senate Committee on Energy chairman Sen. Sherwin Gatchalian is optimistic that the bill will "drive down electricity costs and provide significant savings to power consumers by modernizing and streamlining the permitting process behind power infrastructure projects." ###