Power generators to remit income share to host villages

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Power generating firms will directly remit to host communities their share from the sale of electricity, according to the Department of Energy (DoE).

“It is our duty to serve our people to the best of our abilities. Thus, we recently issued a Department Circular to enhance the ER 1-94 Program and maximize its benefits to host communities,” DoE Secretary Alfonso G. Cusi told the Joint Congressional Power Commission Thursday.

“It is high time that the program is revised. The modifications we are introducing will support the government’s Total Electrification Program to energize unserved and underserved areas. We want the host communities to immediately reap the benefits of hosting our power generation facilities,” said Cusi of the revised rules on the financial benefits to the communities hosting the country’s power plants, legally known as Energy Regulation No. 1-94 (ER 1-94).

Under the ER 1-94 Program, communities hosting power generation facilities or energy resources are entitled to one centavo per kilowatt-hour (P0.01/kWh) of the total electricity sales of Generation Companies or Energy Resource Developers.

According to the DoE secretary, direct remittance of financial benefits to host communities allow them to immediately use the funds.

Streamlining the release of funding will eliminate the bureaucratic process which hampers socio-economic development of the communities hosting the power plants, Cusi also said.

After conducting nationwide public consultations to solicit the inputs and comments of key energy stakeholders, Cusi signed Department Circular No. DC 2008-08-0021, amending Rule 29(A) of the Implementing Rules and Regulations of Republic Act No. 9136 or the EPIRA on 26 July 2018.

The DoE is continuously working with all energy stakeholders to further improve the ER1-94 Program. Guidelines for the implementation of the Department Circular will be issued within 60 days, to be followed by information, education and communication campaigns to inform the public.

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