ELECTRIC cooperatives that comply with the National Electrification Administration’s (NEA) financial and operational standards will be exempted from taxes imposed by local government units, the Department of Energy (DOE) said yesterday.
In a statement, the DOE said its new Joint Memorandum Circular with the Department of Finance states that electric cooperatives can get preferential rights and must secure an annual Certificate of Compliance from the NEA.
This certification shows a cooperative’s adherence to financial and operational standards.
In order to get a certificate, an electric cooperative must maintain high collection efficiency, achieve positive net worth, meet system reliability and system loss standards, and implement electrification projects to attain 100 percent customer connection.
It must also conduct annual general membership assemblies and district elections as scheduled, and submit complete and timely reportorial requirements.
Lotilla said this exemption means local electric cooperatives can now allot more money to increase electrification and improve their services.
“By reducing these costs, we empower them to focus on expanding access to electricity, especially in unserved and underserved areas, ensuring no Filipino household is left behind,” he said. (ABS-CBN News)
