Rural Electrification Program
The National Electrification Administration (NEA) has been the forerunner of the country’s electrification program since its creation as an institution in 1969 by virtue of RA 6038. For nearly five decades, the NEA stayed true to its mandate of lighting up provincial towns and the remotest of villages in our country.
As of December 2018, the data on the electrification status of the franchise areas of the Electric Cooperatives (ECs) show that 78 provinces, 90 cities, 1,385 municipalities, 36,057 barangays, 123,339 sitios and 12.827 million connections have been provided with electricity, benefitting about 60 million Filipinos.
With the ECs as its implementing arm in the mandated mission of rural electrification, even in missionary or economically unviable areas, the NEA continues to implement the Sitio Electrification Program (SEP). As of December 31, 2018, 1,984 sitios are already completed/energized which surpasses the 1,817 NEA’s target for 2018 sitio electrification program. This contributed to the connection of 640,798 additional consumers which is in line with the President’s directive to provide electricity access for all.
Provision of Loan Facilities to ECs
NEA has achieved its full-year loan availment target of P1.7 billion by the electric cooperatives (ECs) three months ahead of schedule. Latest data shows P1.985 billion worth of loans, including calamity loans, has been extended to 62 ECs as of December 2018. The agency released a total of P1.820 billion to 56 ECs to finance capital expenditure projects and P99 million to six other ECs for the repair and rehabilitation of damaged distribution facilities due to previous typhoons Lawin, Urduja and Vinta, and other calamities.
As of December 2018, NEA posted a total collection for the year’s operation the amount of PHP 2.263 billion against amortizations due of PHP 2.223 billion or collection efficiency of 100%.
Capacity Building Program for EC Personnel
In line with the policy of the state as enunciated in Section 2 (c) of RA 10531 to empower and enable the ECs to cope with the changes brought about by the restructuring of the power industry, the NEA conducted various competency seminars and training programs for the personnel of the ECs attended by 3,298 participants. Essentially, the seminars and training programs were designed to enhance the core values and FIT skills of the personnel of the ECs to bring about marked improvement in the ECs’ operational efficiency and financial viability.
Corporate Governance A. ISO 9001:2015 Certification
Anchored on its Good Governance Agenda, the Agency was able to hurdle the ISO 9001:2015 Surveillance Audit conducted by TÜV Rheinland Philippines, Inc. on December 5, 2018 covering the scope “Provision of Financial, Institutional, Technical and Legal Assistance to the Electric Cooperatives (ECs) which in turn undertake power distribution on an area coverage basis”.
B. Customer Satisfaction Survey
NEA continuously espouses good corporate governance in order to provide better service to the ECs. This was clearly manifested in the result/report submitted by Contact Asia Services Inc. (CASI) Research, the third-party service provider for the conduct of the EC Customer Satisfaction Survey (CSS). The overall satisfaction rating garnered by NEA is at 4.50 or 90%; both scores translate to the verbal interpretation of “Very Satisfied”.
The CSS covered six items namely: Staff and Organization, Regulatory: Policies, Regulatory: Application, Financing, Information and Communication and Facilities. Overall, NEA’s offices/departments were rated by the respondents with the average levels of satisfaction ranging from “Satisfied” to “Very Satisfied”.
Passage of Electric Cooperatives Emergency and Resiliency Fund Act (ECERF)
Passed into law on June 29, 2018, RA 11039 provides an orderly and continuing means of financial assistance to electric cooperatives in the form of grants for disaster mitigation, preparedness and rehabilitation of damaged infrastructure after a fortuitous event or force majeure.
Under the law, the NEA will manage and administer the ECERF, which will have an initial amount of P750 million to be taken from the National Disaster Risk Reduction and Management (NDRRM) Fund and will be released to the NEA Quick Response Fund for proper release to qualified ECs. In case of fund deficiency, the NEA may seek the allocation of a supplementary budget, subject to the approval of the President.
The NEA may also accept donations in the form of funds, materials and equipment intended for the restoration and rehabilitation of the ECs’ damaged infrastructure, subject to existing auditing rules and regulations and shall be exempt from taxes and duties. In turn, the ECs shall implement the rural electrification program nationwide as well as ensure the preparedness and mitigation measures to protect the infrastructure from the adverse impact of any fortuitous event or force majeure.
The Proposed Implementing Rules and Regulations (IRR) of ECERF was approved by the NEA Board of Administrators on December 7, 2018 under Board Resolution No. 208.
Mobilization of Task Forces Task Force Ompong
In September 2018, Typhoon Ompong (Mangkhut) made landfall in Baggao, Cagayan. Ompong has maximum winds of 205 km/h and gustiness of up to 285 km/h. Though it was not a super typhoon under PAGASA’s classification system, it was a powerful tropical cyclone with a huge diameter of 900 kilometers.
A task force composed of electric cooperatives (ECs) from Central Luzon headed north to help restore power in areas left in the dark. Dubbed as “Power Restoration Rapid Deployment Task Force Ompong,” the team augmented the manpower of the typhoon-affected ECs and provided the necessary assistance to restore the electricity service as safely and as quickly as possible.
Task Force Rosita
Typhoon Rosita (Yutu) made landfall in Dinapigue, Isabela on October 30, 2018. The storm came more than a month after Typhoon Ompong left a path of destruction in 19 provinces in Luzon, including Isabela and Quirino. This prompted NEA and ECs to mobilize the Task Force Kapatid (TFK) to help restore power in the provinces of Isabela and Quirino.
TFK is a time and tested spirit of Bayanihan among ECs’ Compact of Cooperation. TFK pools together volunteers from different ECs to render volunteer service to other ECs which need technical help like energization of hard-to-reach places, to the rehabilitation of dilapidated or damaged electric distribution lines.
2017 EC Overall Performance Assessment
The 2017 EC Overall Performance Assessment showed an increase in the number of power distribution utilities that are fully compliant with the key performance standards (KPS) of the NEA. Based on the results, the ECs that were rated AAA rose to 87 from 78 in 2016. Of these, 33 ECs received an overall score of 100, which is higher than the 24 ECs that garnered 100 points from the previous assessment.
Meanwhile, all power distributors in Regions VI (Western Visayas), VII (Central Visayas) and CARAGA attained AAA rating, making them the highest performers. Region VIII is the most improved region with 10 of its 11 ECs earning the AAA categorization from the state-run agency.
Additionally, the assessment revealed 76 ECs maintained their AAA status while 20 ECs showed improvement in ratings, 11 of which were to AAA categorization level. The NEA evaluates and determines the overall performance ratings of all ECs annually using the two criteria – KPS (80%) and EC Classification (20%).
The AAA rating is the highest score given by the NEA to ECs that indicates the power distributors’ full compliance on four parameters, namely financial, institutional, technical and reportorial requirements. The D rating is the lowest. Scores and their corresponding ratings are as follows: 95-100 = AAA; 90-94 = AA; 85-89 = A; 75-84 = B; 50-74 = C; and 49 and below = D.
Results of the recent assessment also showed that 83 percent or a total of 101 out of the 121 ECs supervised by the agency have notched either AAA, AA or A status last year. Of the remaining 20 ECs, four improved their performance either from C to B or D to C; 13 ECs manifested improvement in total scores while three retained their performance level.
Approved Policies/Guidelines
In accordance with its expanded powers, functions and privileges under Section 5 of RA 10531 and Section 5 of the IRR, the NEA has formulated several policies and guidelines geared towards the fulfillment of NEA’s mandate and to provide assistance and guidance to the ECs in the performance of their franchise obligations as distribution utilities:
Revised Policy on Retirement Plan for General Managers of Electric Cooperatives (3rd Revision)
Policy Guidelines on the Conduct of Examination and Interview for Applicant to the Position of General Managers of Electric Cooperatives
Policy Amending NEA Memorandum No. 2015-007 on “Revised Guidelines on Benefits, Allowances and Incentives of Electric Cooperative Officials and Employees”
Policy on Assignment of Acting General Manager and/or Project Supervisor to Electric Cooperatives
Revised Guidelines for the Selection and Appointment of NEA Representative to the Electric Cooperative Board of Directors
Policy Guidelines on the Implementation of Strategized Electrification Program (STEP)