Empowering Phl’s rural areas with e cient, reliable electricity
In the age of technology, can one think of a world without electricity? It is now an integral part of human lives. It powers almost everything we interact with — from handy devices that enhance connectivity to home appliances that elevate convenience.
In a larger scale, businesses and industries effectively carry out their roles in society with the push of electricity.
Back in the mid-‘90s, most urban areas started reaping the advantages of having electricity. It ushered development as it provided a stable livelihood, eased various processes, and increased the productivity of workers.
However, some rural areas, especially those situated far from the commerce center, had to make the most out of limited — or sometimes, nonexistent — power supply.
Today, the country looks back and envisions a more bright and energized future as we commemorate the golden anniversary of the National Electrification Administration (NEA), we also celebrate 50 years of rural electrification and the 10th National Electrification Awareness Month (NEAM).
LIGHTING UP FILIPINO HOMES
Aiming a parallel growth across the islands, the government, by virtue of Republic Act (RA) 2717 on June 19, 1960, created Electrification Administration (EA). The agency was tasked to oversee the installation of electrical systems to address and eventually put an end to the lack of dependable power supply in remote areas.
RA 2717 was further strengthened with the passage of RA 6038 on July 28, 1969. The act declared a national policy objective for the total electrification of the Philippines on an area-coverage basis, providing for the organization of the NEA, and the organization, promotion, and development of electric cooperatives (ECs) to attain the objective prescribing the terms and conditions for their operation.
NEA was later converted into a corporation wholly-owned and controlled by the government under Presidential Decree 269, which was signed on Aug. 6, 1973.
This development served as the precursor of the agency’s fruitful electrification strategies. As NEA’s borrowing authority, corporate powers and capitalization increased to P1 billion, the agency strengthened and enabled ECs to carry out its roles. From 1974 to 1976, over 60 ECs were organized. It energized 414 towns, 3,843 barangays, and 486,000 rural households.
Despite several hurdles that came their way after the ‘70s, NEA was able to carry out their mandate. Toward the end of the ‘80s, 117 ECs had been organized, which served almost three million households.
Coming out from the electricity crisis during the late ‘90s, NEA focused on several programs such as the rehabilitation and expansion of lines, providing energy to isolated islands, improving collection efficiency, decreasing system loss, increasing loan releases to ECs, and improving the ECs viability.
Carrying out the mission
Five decades after its foundation, NEA continuously fulfills its mandate of lighting up provincial towns and the remotest of villages in our country.
As of December 2018, the data on the electrification status of the franchise areas of the ECs show that 78 provinces, 90 cities, 1,385 municipalities, 36,057 barangays, 123,339 sitios, and 12.827 million connections have already been provided with electricity, benefiting nearly 61 million Filipinos.
As for the implementation of NEA’s Sitio Electrification Program (SEP), around 1,984 sitios were already energized as of Dec. 31, 2018. This surpassed the 1,817 targets for 2018 and contributed to the connection of 640,798 additional consumers.
Backed by the NEA’s data, the agency has achieved its full-year loan availment target of P1.7 billion by the ECs three months ahead of schedule. Around P1.985 billion worth of loans, including calamity loans, have been extended to 62 ECs as of December last year.
They released a total of P1.820 billion to 56 ECs to finance capital expenditure projects. Meanwhile, about P99 million were given to six other ECs for the repair and rehabilitation of damaged distribution facilities due to typhoons Lawin, Urduja and Vinta, other calamities.
Likewise, NEA posted a total collection of P2.263 billion against amortizations due of P2.223 billion, representing collection efficiency of 100% for the 2018 operation.
As mandated by RA 11039, NEA is tasked to manage and administer Electric Cooperatives Emergency and Resiliency Fund (ECERF). Under the said law, ECERF will have an initial amount of P750 million to be taken from the National Disaster Risk Reduction and Management (NDRRM) Fund. This will be released to the NEA Quick Response Fund for proper release to qualified ECs.
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 these shall be exempt from taxes and duties. With this, ECs are tasked to implement the rural electrification program nationwide and ensure the preparedness and mitigation measures to protect the infrastructure from the adverse impact of any unexpected events.
Through the years, the agency also focused on the skill development of EC personnel through CapacityBuilding Programs. The various competency seminars and training sessions, which were already attended by 3,298 participants, are conducted to enhance the core values and FIT skills of the workers and improve the ECs’ operational efficiency and financial viability.
Anchored on its Good Governance Agenda, the agency achieved the ISO 9001:2015 Surveillance Audit conducted by international certification body TÜV Rheinland Philippines, Inc. in 2018. This covered the scope, “Provision of Financial, Institutional, Technical and Legal Assistance to the ECs, which in turn undertake power distribution on an area coverage basis.”
Apart from this, Contact Asia Services, Inc. (CASI) Research, a third-party service provider for the conduct of the EC Customer Satisfaction Survey (CSS), reported that the overall satisfaction rating garnered by NEA is at 4.50 or 90%, which translates to “Very Satisfied.”
For five decades, NEA has been successfully lighting up Filipino homes. Suited with its anniversary theme this year, “NEA @ 50: One with ECs and MCOs for Sustainable Rural Development,” the agency will not stop paving a brighter horizon for the Philippines.
This development served as the precursor of the agency’s fruitful electrification strategies. As NEA’s borrowing authority, corporate powers and capitalization increased to P1 billion, and the agency strengthened and enabled ECs to carry out its roles.