The National Electrification Administration ordered all distribution utilities to submit to the Department of Energy a comprehensive electrification master plan (CEMP) to achieve the total energization of their respective areas as part of their compliance to Executive Order 156.
The utilities were also asked to waive part of their franchise areas to enable other companies to adequately distribute power supplies in these sectors.
NEA directed the electric cooperatives to submit the report within 30 days from December 21.
NEA administrator Emmanuel Juaneza also ordered the DUs to submit an inventory of all inadequately served areas within their respective franchises and actions plans to achieve the timely implementation of their total electrification program, including proposals to waive areas for alternative service providers and qualified third parties pursuant to Section 59 of R.A. No. 9136 or the EPIRA Law.
The utilities must prepare specific timelines to implement each action plan and program to deliver continuous, reliable and affordable service, and funding sources and budgetary requirements.
The move is in compliance with Executive Order No. 156, instituting measures to ensure consistent and reliable electricity service in inadequately served areas, improve performance of ineffective distribution utilities and achieve total electrification of the country.
President Rodrigo Duterte issued E.O. 156 on December 9, requiring measures to ensure the consistent and reliable electricity service in inadequately served areas in line with government’s efforts to accelerate total electrification.
The EO also stressed the need to use advance technology that will facilitate the development of integrated systems, such as microgrids, distributed energy resources, delivery and consumption of electricity for unserved and viable areas.
The EO noted that some DUs and ECs that continue to demonstrate poor performance, thus hampering the government goal of total electrification. Alena Mae S. Flores
It called for the transfer of power to take over the operations of ailing ECs from NEA to the Office of the President.
“The power to exercise step-in rights and take over the operations of ailing electric cooperatives under R.A. 10531 and its IRR, to improve the financial condition of such electric cooperatives, is hereby transferred to the Office of the President,” the E.O. stated.
NEA said it would coordinate with DOE and the Energy Regulatory Commission in the implementation of the rest of the directives under the EO.
Under the EO, the DOE can modify or reject the CEMP if it is not in accordance with the objective of total electrification or if it will not provide the highest quality and least cost of service for providing electricity.