SNAP remits P4M to RE host communities
RAMOS, Isabela: SN Aboitiz PowerMagat Inc. ( SNAP- Magat) has released P4 million in electrification funds (EF) to support communities hosting renewable energy (RE) providers in the provinces of Ifugao, Isabela and Nueva Vizcaya to help them survive the economic shocks from the coronavirus disease 2019 (Covid-19) pandemic.
SNAP President and Chief Executive Officer Joseph Yu said an EF of P418,834.70 for the remaining host local government units in the said provinces also awaits endorsement from the Department of Energy (DoE).
Yu said that once approved for release, this would bring the total EF for SNAP-Magat host communities to P4.4 million excluding the regional share.
He explained the EF is part of the Energy Regulation (ER) 1-94 program under the DoE providing host communities with a one-centavo share for every kilowatt-hour (P0.01/kWh) of the total electricity sales of a generating company.
Other than the EF, the Development and Livelihood Fund (DLF) and the Reforestation, Watershed Management, Health and Environment Enhancement Fund (Rwmheef) make up the total ER 1-94 fund.
In 2018, DoE amended ER 1-94 so that power generation companies can directly download the fund to their host communities. It also expanded the categories of beneficiaries to include host regions and indigenous peoples groups, as well as designated distribution utilities in charge of the EF component for host beneficiaries.
In 2019, SNAP- Magat signed memorandums of agreement with its host communities to implement the amended ER 1-94.
This photo shows the hydropower plant of SN Aboitiz Power-Magat Inc. in Magat, on the border of Isabela and Ifugao.
On April 6, the DoE issued Department Circular (DC) 2020-0400080 to allow the use of ER 1-94 for Covid-19 response projects and the downloading of the EF to host communities as back-up for DLF and Rwmheef.
These projects include the facilitation of mass testing by providing and constructing facilities, procurement of medical testing kits, emergency subsidy (non-food) or augmentation to existing subsidy programs, access to essential goods such as food and medicine through mobile markets or feeding programs, and protective personal equipment (PPEs) for front liners.
Late last year and early this year, SNAP-Magat remitted about P7.8 million worth of DLF and Rwmheef. These accumulated from Dec. 26, 2017 to Dec. 25, 2019 while amendments to the ER 1- 94 guidelines were being developed.
In April, SNAP-Magat also provided food and PPE aid to its Magat host communities worth around P4.8 million from the company’s voluntary corporate social responsibility (CSR) fund.
“We thank the DoE for exploring ways to support the nation’s fight against Covid-19. The newly signed DC backs our commitment to help our host communities in
their battle against Covid- 19,” Yu said.
He said the SNAP Group is committed to powering positive change in our host communities. “Social responsibility has always been at the core of our operations, and Covid-19 has in no way dented that commitment — it only strengthened it.”
SNAP-Magat is a joint venture between SN Power of Norway and AboitizPower. It owns and operates the 360- to 388-megawatt Magat hydropower plant on the border of Isabela and Ifugao; and the 8.5- MW Maris hydropower facility in Isabela.