BAGUIO CITY(PIA) – The Cordillera Regional Development Council (RDC) signed a memorandum of agreement with power generating companies in the region for the administration of the regional share of financial benefits under Energy Regulation No. 1-94 of the Department of Energy (DOE).
The ER 1-94, implemented in accordance with the Implementing Rules and Regulations of the Electric Power Industry Reform Act of 2001 (EPIRA), ensures that host communities get a reasonable share from generation facilities operating in their areas.
It provides financial benefits equivalent to one centavo per kilowatt-hour (P0.01/kWh) of their total electricity sales to their host region, province, city, municipality, and barangay. Half of this is set aside as Electrification Funds while the other half is allocated as Development and Livelihood Fund (DLF) and Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF).
The RDC-CAR approved the Guidelines on the Selection of Local Government Units Beneficiaries for the Regional Share of Financial Benefits of DOE ER 1-94. It then entered a MOA with power generating companies for the utilization of the RDC share of ER 1-94 funds during the recent RDC second quarter meeting.
Representing the RDC are co-chairperson Edna Tabanda, and RDC Vice Chair and NEDA Regional Director Susan Sumbeling. For the power generating companies are San Roque Power Corporation Vice President for Corporate Affairs Tommy Valdez, Benguet Electric Cooperative General Manager Melchor Licoben and Power Generations Operations Department Manager Arthur Bacoco, DPJ Engineers and Consultants General Manager Daniel Peckley Jr., First Ifugao Renewable Energy Corporation President Frederick Ngipol, HEDCOR Sabangan Luzon Hydroelectric Corporation Assistant Vice President for External Relations John Michael Rico, SN Aboitiz Power Corporate Affairs Officer Chief James Rene Manimtim, and SN Aboitiz Power Assistant Vice President and SNAP Benguet Plant Manager Hollis Fernandez.
RDC Chairperson Apayao Governor Elias Bulut Jr. expressed gratitude to the power generating companies for the partnership to promote renewable energy which provide progress and prosperity to the host communities.
“I would like to thank the representatives of the power generating companies present for their unwavering support and cooperation. Your commitment to corporate social responsibility and development is truly commendable. I also wish to sustainably acknowledge the efforts of the RDC members, especially our Sectoral Committees, who have worked diligently to bring this agreement to fruition,” Bulut said in a message read by Tabanda.
He said the signing of the MOA between the RDC and the power generating companies is a testament to the mutual commitment of ensuring the equitable distribution of financial benefits derived from hydroelectric power plants in accordance with the DOE Energy Regulation 1-94.
“The agreement further solidifies our collaborative efforts to fulfill our mandate under ER 1-94, ensuring that these financial benefits are effectively managed and utilized to enhance the well-being of the region.”
“As we move forward, let us remain steadfast in our mission to foster inclusive and resilient development in our region. Together, we can create a matatag, maginhawa and panatag na buhay for all Cordillerans,” Bulut said.
Manimtim, on behalf of the power generating companies, said the MOA signing is a very good development which represents the mutual commitment to ensure equitable distribution of financial benefits derived from host generation companies in accordance with DOE’s ER 1-94. (RMC- PIA CAR)
