Power companies remit funds to LGUs directly
The Sangguniang Panlalawigan (SP), presided by Vice Governor Lambert D. Galima, had given authority to Governor Carlos M. Padilla and Provincial Treasurer Rhoda S. Moreno on April 1 to open 2 accounts each in the name of the province at the Development Bank of the Philippines (DBP) for the fund transfer of collections from First Hydro Power Corporation, SN Aboitiz Power Magat, Inc., and Casecnan MIPP.
The Provincial Treasurer relayed the communication from the Department of Energy (DOE) to open accounts at the DBP in accordance with Department Circular 2018-08-0021 that mandates DOE to devise ways and means of giving direct benefits to the province, city or municipality, especially the community and people affected, and equitable and preferential benefit to the region that hosts the energy resource and/or the energy-generating facility; and Department Order 2019-01-001 of the DOE providing the Internal Guidelines and Procedures for the Transfer of Existing Funds in Relation to the Financial Benefits under Energy Regulations (ER) 1-94.
ER 1-94 policy objectives are to recognize the contributions made by the communities and people affected; to lessen conflict of rights; and to promote harmony and cooperation among the LGUs/Region and the Energy Resource Developers and/or power producers.
ER 1-94 states that the generation company and/or energy resource developer should set aside one centavo per kilowatt hour (P0.01/kWh) of the total electricity sales as financial benefits to host communities of such generation facility, shared among the 3 local government units that is 60% for municipalities and barangays; 30% for the province; and 10% for the host region.
Previously, the power generating facilities remit the funds to the DOE then the DOE releases funds to the LGU after submitting projects proposals. But by the virtue of the Department Order of the DOE which took effect on December 28, 2018, the power generating companies will directly remit funds to the LGU.
The bank accounts opened will be for the Development and Livelihood Fund of the province and the other account will be for the Reforestation, Watershed Management, Health and/or Environment Enhancement Fund. #bg