NEA to issue rules on P750-M power coop emergency fund

The National Electrification Administration is set to issue the rules on the P750million emergency fund for power coops.

NEA completed public consultations on the draft of the implementing rules and regulations of Republic Act 11039, also known as the Electric Cooperatives Emergency and Resiliency Fund Act (ECERF).

The agency gathered electric cooperatives (ECs) nationwide to discuss the salient provisions of RA 11039 and seek their views and comments on the draft IRR that will pave the way for the full implementation of the law.

NEA also consulted with the Department of Energy-Energy Policy and Planning Bureau (DOE-EPPB) to finalize the IRR, said Vic Alvaro, NEA’s department manager for management and consultancy services and chairman of the committee tasked to craft the IRR.

“After consolidating all the inputs from the different stakeholders, the NEA is confident it can come out with the IRR of the ECERF Law by November of this year in compliance with Section 15 of RA 11039,” Atty. Alvaro said.

Passed into law on June 29, RA 11039 provides an orderly and continuing means of financial assistance to electric cooperatives in the form of grants for disaster mitigation, preparedness and rehabilitation of damaged infrastructure after a fortuitous event or force majeure.

Under the law, the NEA will manage and administer the ECERF, which will have an initial amount of P750 million to be taken from the National Disaster Risk Reduction and Management (NDRRM) Fund and will be released to the NEA Quick Response Fund for proper release to qualified ECs.

In case of fund deficiency, the NEA may seek the allocation of a supplementary budget, subject to the approval of the President.

The NEA may also accept donations in the form of funds, materials and equipment intended for the restoration and rehabilitation of the ECs’ damaged infrastructure, subject to existing auditing rules and regulations and shall be exempt from taxes and duties.

In turn, the ECs shall implement the rural electrification program nationwide as well as ensure the preparedness and mitigation measures to protect the infrastructure from the adverse impact of any fortuitous event or force majeure.

Based on the law, the ECs shall also ascertain the ability of their manpower to undertake emergency response for the immediate restoration or rehabilitation of their damaged infrastructure after a calamity.