The National Economic and Development Authority (NEDA) Region IV-A, as Secretariat to the Regional Development Council (RDC) CALABARZON, enhanced the guidelines to access the energy regulation (ER) 1-94 fund regional share. The amendments aim to improve the efficiency of the guidelines’ implementation, consistent with the Department of Energy (DOE)’s Department Circular (DC) No. 2018-08-0021, and provide equal opportunities for eligible local government unit (LGU) beneficiaries.
The guidelines allow non-host poor municipalities to access the ER 1-94 fund regional share for developmental, livelihood, environmental enhancement, reforestation and watershed management, health-related, and disaster risks reduction-climate change adaptation projects. Section 66 of the Electric Power Industry Reform Act mandates Generation Companies (GenCos) and Energy Resource Developers (ERDs) to set aside one centavo per kilowatt-hour of the total electricity sales as financial benefits to host communities. The host region is entitled to a five percent share of the accumulated electrification fund, development and livelihood fund, and reforestation, watershed management, health and/or environment enhancement fund.
Ms. Christine B. Flores of NEDA Region IV-A reported that under the enhanced guidelines, the RDC shall endorse directly to the GenCos and ERDs an annual work program containing the consolidated RDC-endorsed projects for funding under the regional share. After validation, the GenCo or ERD shall remit the financial benefits to the beneficiary municipality identified and approved by the RDC. Moreover, an eligible LGU beneficiary must submit only one project for funding to provide equal opportunities to other eligible LGU beneficiaries.
The Sectoral Committee on Macroeconomy and Development Administration endorsed the revised guidelines to the RDC during its fourth quarter meeting on November 11. During the meeting, Dir. Luis G. Banua of NEDA Region IV-A emphasized that the maximum amount eligible LGU beneficiaries can avail will increase from PHP3.0 million on first availment to PHP10.0 million on third availment depending on compliance with the full liquidation report and settlement of obligations.
The revised guidelines will take effect upon approval of the RDC and suspension of the DOE DC No. 2020-04-008 on the use of ER 1-94 fund for COVID-19 response.
Jennylyn P. Jucutan, NEDA Region IV-A | November 16, 2022