The Philippine Star

Empowering Phl’s rural areas with e cient, reliable electricit­y

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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.

 ??  ?? NEA’s Central office is situated along NIA Road in Diliman, Quezon City
NEA’s Central office is situated along NIA Road in Diliman, Quezon City
 ??  ?? Five decades after its foundation, NEA continuous­ly fulfills its mandate of lighting up provincial towns and the remotest of villages in our country.
Five decades after its foundation, NEA continuous­ly fulfills its mandate of lighting up provincial towns and the remotest of villages in our country.
 ??  ?? The agency oversees the installati­on of electrical systems to address the lack of dependable power supply in remote areas.
The agency oversees the installati­on of electrical systems to address the lack of dependable power supply in remote areas.
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