DOE revising guidelines on perks for areas hosting energy projects

The Department of Energy (DOE) is revising the guidelines on perks for communities hosting energy projects to accelerate socioeconomic development in the countryside.

The DOE’s Electric Power Industry Management Bureau is seeking comments from industry stakeholders on improving the rules governing the direct remittance of financial benefits for communities hosting energy projects.

Specifically, the agency is looking to revise the existing policy on the administration of funds under Energy Regulation 1-94 (ER1-94).

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

The distribution utilities will be the recipient of the electrification fund and channeled to local government units, indigenous peoples or indigenous cultural communities.

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 and the reforestation, watershed management, health and environment enhancement fund.

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

“The move is meant to accelerate socioeconomic 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,” it said.

The DOE said it will continue to encourage wider stakeholder involvement, accepting public’s comments and suggestions on the proposed circular on or before June 22.