NEA reminds 39 ECs on expiring franchises

The National Electrification Administration (NEA) is urging 39 electric cooperatives whose electric distribution franchises will expire from 2027 to 2029 to file their applications the soonest possible time.

In a memorandum signed by NEA Administrator Antonio Almeda, NEA advised a total of 39 electric cooperatives to file their applications before the House committee on legislative franchises for the renewal of their electric cooperative distribution franchise the soonest possible time “considering the Congressional hearing, deliberations and the procedural requirements.”

Based on NEA’s list, two electric cooperatives will have their respective franchises expire in 2027, while 14 will expire in 2028.

Meanwhile, a total of 23 electric cooperatives will have their franchises expire in 2029.

NEA has also reminded the electric cooperatives of the documentary requirements of the committee on legislative franchises for their franchise renewal applications.

The agency is mandated to carry out the total electrification of the country on an area coverage basis, with the 121 electric cooperatives as the implementing arm.

It aims to achieve total electrification in the country in five years’ time or by 2028.

To achieve its goal of total electrification in the country, the agency will need a total funding requirement of P29.54 billion.

Of the P29.54 billion which will include private and other government initiatives, NEA said P23.01 billion would have to be sourced from the national government to fund the sitio electrification program (SEP) and the barangay line enhancement program.

For the SEP, NEA will be requesting the national government to fund an average of 2,000 sitios a year until 2028 with an estimated project cost of P20.79 billion.

NEA said the biggest challenge in the attainment of 100 percent rural electrification program is the inadequate government subsidy to finance the energization of the remaining unenergized areas.