Bayombong, Nueva Vizcaya—Officials of power firm SN Aboitiz Power and host local government units recently signed an agreement that will eventually enable the firm to directly remit their financial benefits directly to LGUs.
The Memorandums of Agreement for the implementation of the amended Energy Regulations No. 1-94 will start the release of financial benefits from power generators to local governments.
Gov. Carlos Padilla said local chief executives from the provincial, municipal, and barangay levels were present during the MOA signing ceremonies held last Sept. 5 such as Gov. Melchor Diclas of Benguet, Gov. Jerry Dalipog of Ifugao, Isabela Board Member Edward Isidro.
“We are there to support this development as we will be directly remitted with the power generators’ financial benefits that will redound to the development programs and projects for our constituents,” he said.
Padilla added that the province is grateful for the DOE and SNAP for the new scheme on the direct remittance of ER1-94 funds.
“We look forward to effectively utilizing the funds, as stated in the Implementing Rules and Regulations,” he said.
SNAP is set to turn over more than P10.5 million to its host communities based on the total attributable energy sales of its Ambuklao, Binga, Magat, and Maris hydro facilities.
Earlier, Provincial Treasurer Rhoda said the province is expecting more than P10 million from power generators to be remitted to the provincial government this year.
The ER 1-94 program is a policy under the Department of Energy Act of 1992 and Electric Power Industry Reform Act of 2001.
The program seeks to recompense for the contribution made by the communities hosting Energy Resources and/or Energy Generating Facilities. These host communities will get a share of one centavo for every kilowatt-hour (Php 0.01 / kWh) sold by power generation plants operating in their areas.
Of the one centavo per kilowatt-hour, fifty percent (P0.005/kWh) will be used in the electrification of the community; twenty five percent (P0.0025/kWh) will be earmarked for the Development and Livelihood Fund (DFL); and the other twenty five percent (P0.0025/kWh) will be allocated for Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF).
Through the DOE Department Circular 2018-08-0021, power generation companies can now directly download the ER 1-94 funds related to DFL and RWMHEEF to their host communities. Streamlining the release of funding will ease the process of relevant implementing projects that benefit the host communities.
SNAP Group is a joint venture between SN Power of Norway and AboitizPower. It supplies clean, renewable and dependable energy through the operation of the 360- to 388-MW Magat Hydroelectric Power Plant (HEPP) on the border of Isabela and Ifugao, the 8.5-megawatt (MW) Maris Main Canal HEPP as well as the 105-MW Ambuklao HEPP and the 140-MW Binga HEPP in the province of Benguet.