I. Major Accomplishments in 2013 and 2014
A. More Access to Electrification
When His Excellency President Benigno S. Aquino, III approved the Sitio Electrification Program (SEP) in 2011, NEA committed to provide electricity to the 32,441 unlit sitios as of June 2011. NEA and the 119 electric cooperatives (ECs) are sensitive of this administration’s directive of total sitio electrification thus, the SEP plan was laid down to ensure realization of our objectives.
The NEA’s mandate to pursue the total electrification of the country through the ECs by way of enhancing distribution development including the missionary areas was further strengthened in its new charter under Republic Act No. 10531. This mandate can only be achieved by providing subsidy support from the National Government.
As of January 07, 2015, NEA has energized 20,513 sitios or 63% of the targeted 32,441 sitios which is expected to be completed until the end of the term of the President. The SEP contributed to the provision of electric service to over 10.3 million consumer connections benefitting about 51 million Filipinos in the countryside.
The overall electrification target is to attain 90% electrification of households by 2017, anchored on the Department of Energy’s (DOE) Household Electrification Plan. Provision of electric service will yield more opportunities for improved quality of life, greater access to basic services and better infrastructure for rural development. As such, another milestone was achieved in the rural electrification program (REP) with the connection of the 10th million household in Leyte in August 2013 under the coverage area of LEYECO IV.
B. Task Force Kapatid (TFK)
The Task Force Kapatid, initially launched in 2002, is a volunteer service whereby ECs group together to mobilize their personnel and logistics to assist other ECs needing immediate rehabilitation of distribution lines in times of calamities in order to speedily restore power service to member-consumers and alleviate the plight of the rural folks.
Relative to the call of the President to bring back hope to our countrymen who are greatly affected by calamities, the reactivation of the NEA-initiated TFK has facilitated the reconstruction of electric distribution lines and power restoration in heavily devastated areas. Among others, TFK Super Typhoon “Yolanda” composed of 1,172 engineers and linemen from 70 ECs and 11 private organizations had reconstructed the backbone lines along centers of the 341 affected municipalities in 33 ECs across Regions IV-B, V, VI, VII and VIII as of December 2013. Their efforts were further extended and as of 30 June 2014, electric distribution systems to all affected 7,052 barangays were rehabilitated and power to 1,428,636 households were restored. TFK Typhoon “Pablo” completed the rehabilitation of lateral lines of the 25 last mile barangays in the municipalities of Cateel, Boston, Bagana and Caraga, Davao Oriental, 18 days ahead of the restoration timeline. In 2 days, TFK Typhoon “Santi” restored power on 27 October 2013, in 10 barangays in Tarlac under the franchise area of a Private Investor-Owned Utility, thus defining the extended role of TFK.
II. Major Issues and Challenges Identified in 2014
In the implementation of the SEP, the following were identified as major issues and challenges:
A. Local Government Units (LGUs) have compliance requirements prior to service connection such as land title/land occupancy certificates, permits, taxes and other fees
B. Electrical plans need to be duly signed by a Professional Electrical Engineer
C. Difficulty in securing barangay certifications for some unenergized sitios
D. Accessibility or right-of-way and peace and order concerns, length of line from the nearest tapping point
III. Measures to Address Issues Identified in 2014
A. Conduct regular Manufacturers/Suppliers Forum to promote fairness, transparency and accountability; ensure availability of quality and reasonably priced construction materials; and to foster good relationship among various stakeholders
B. Tap EC Regional Technical Evaluators to augment NEA’s manpower complement in facilitating project evaluation.
C. Implement a more focused consumer connection program by providing free house wiring materials and labor of Php 2,500 to a maximum of 60 consumers per sitio.
D. Conduct by the ECs of intensive campaign for cooperative membership which provides access to pre-membership seminars, application processing and other services parallel to distribution line construction
IV. Strategies/Policy Directions for 2015 and 2016
A. Provision of National Government (NG) subsidy support to enable NEA and the ECs to meet the target energization of the remaining 12,422 sitios for 2015-2016.
B. NEA will continuously provide from its corporate funds additional loans to finance ECs capital projects and working capital requirements;
C. Release of funds from the NG in accordance with RA 10531 to serve as guarantor to qualified ECs in their transactions with various parties such as, but not limited to, co-signing in power supply contracts.
V. Priority Policy and Strategies that Needs Budgetary Support in 2016
Provision of NG subsidy support to enable NEA and the ECs to meet the target energization of the remaining sitios for 2015-2016.