Wednesday, 26 September 2018
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PUBLIC CONSULTATION  |  DOE on Direct Remittance of Benefits from Energy Power Projects

TAGUIG CITY – The Department of Energy- Electric Power Industry Management Bureau (DOE-EPIMB) held a public consultation last June 7, 2018 on the rules governing the direct remittance of financial benefits for communities hosting energy projects.

Held at the Marquis Events Place in Bonifacio Global City, the consultation was meant to get the comments and suggestions of various stakeholders to improve the existing policy on the administration of funds under Energy Regulation 1-94 (ER1-94).

FINANCIAL BENEFITS FOR HOST COMMUNITIES

Under ER1-94, the generation facilities or energy resource development projects required to provide one-centavo per kilowatt-hour (P0.01/kWh) of their electricity sales shall be remitted directly to the host communities.

The distribution utilities will be the recipient of the electrification fund and while the local government units (LGUs), indigenous peoples or indigenous cultural communities (IPs/ICCs). The corresponding share of the host communities shall be in accordance with the sharing under existing laws will be the recipient of the development and livelihood fund (DLF) and the reforestation, watershed management, health and environment enhancement fund (RWMHEEF).

The consultation specifically discussed the proposed amendments to Rule 29 (A) of the EPIRA-IRR and other issuances related to the administration of the said financial benefits under the ER1-94 program.

The move is meant to accelerate socio economic development, ensure more effective and efficient utilization of funds, and enforce the immediate provision of benefits to the host communities through the annual work plans to be submitted by the host communities to the generating companies and power resource developers.

PUBLIC PARTICIPATION

A total of 345 participants from Luzon, Visayas and Mindanao attended the event, including 165 representatives from local government units(LGUs) of the host communities, 34 representatives from distribution utilities (DUs) and 146 generation companies (GenCos).

The DOE said it continues to encourage wider stakeholder involvement. For this purpose the DOE will accept the public’s comments and suggestions on the proposed Department Circular on or before 22 June 2018.

Comments may be submitted via email through doe.er194@gmail.com or via fax at (02) 840-1731. DOE / MCAG

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