THE Department of Energy (DOE) has earmarked P1.1 billion worth of subsidy for electric cooperatives under the proposed 2020 budget to supply electricity to 775 sitios or at least 460,000 households across the country, an official said Thursday.
National Electrification Administration (NEA) chief Edgardo Masongsong said this during the budget hearing on Department of Energy’s proposed P2.3-billion budget for 2020 before the Senate Committee on Finance.
Masongsong said that the lion’s share of the subsidy will go to Mindanao regions since these are the places with low energization level, among other factors.
Specifically, these areas include the Bangsamoro region, Zamboanga Peninsula, Soccsksargen region, and Davao del Norte.
“The bulk of the subsidy will go to the electric cooperatives with an energization level of 74 percent and below, with consideration of the peace and order situation, financial liquidity, if it is a medium-sized cooperative and good project liquidation performance,” Masongsong said.
“I came up with a directive that electric cooperatives with an energization level of 95 percent and above based on 2015 census to be the least priority for the subsidy allocation,” Masongsong added.
Masongsong said that NEA has also urged the electric cooperatives on excellent financial standing to court potential local and international investors for projects and consider entering joint venture agreement with the private sector to be able to service more areas.
Energy secretary Alfonso Cusi said that based on the latest government data, four percent of the country has to be supplied with electricity.
Based on Commission on Audit records, at least 102 electric cooperatives have yet to liquidate P403 million worth of subsidies released to electric cooperatives by the Department of Energy from 2012 to 2014.
NEA has already issued Memorandum No. 2017-009 in April 2017 which states that the liquidation of subsidy funds released for completed projects will form part of the parameters for electric cooperatives’ overall assessment and awards.
Since then, NEA has also required electric cooperatives to liquidate their respective government subsidies before they are granted rewards, incentives, benefits, allowances and salary upgrading. (GMA News)
