The Regional Development Council–Cordillera Administrative Region (RDC-CAR) approved the Guidelines on the Selection of LGU Beneficiaries for the Regional Share of Financial Benefits of Department of Energy (DOE) Energy Regulation (ER) No. 1-94 and the Memorandum of Agreement (MOA) between RDC-CAR and Power Generating Companies for the Utilization of the RDC Share of ER 1-94 Funds during RDC-CAR 1st Quarter Full Council Meeting recently.
The ER 1-94, implemented in accordance with the Implementing Rules and Regulations (IRR) of the Electric Power Industry Reform Act of 2001 (EPIRA), ensures that Generation Facilities provide financial benefits equivalent to one centavo per kilowatt-hour (P0.01/kWh) of their total electricity sales to their host region, province, city, municipality, and barangay. Of these, half is set aside as Electrification Funds while the other half is allocated as Development and Livelihood Fund (DLF) and Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF).
Based on DOE Department Circular (DC) 2018-08-0021, five percent of the accumulated DLF and RWMHEEF shall be allocated as the region’s share which can be used to fund livelihood, and environmental projects.
The RDC plays a pivotal role in the implementation of ER 1-94 as it is responsible for the selection of beneficiaries (LGUs) of the aforementioned fund. Further, the RDC is promoting renewable energy particularly hydropower considering the abundant water resources of the region.
Under the 2nd Advisory for the Implementation of DC2018-08-0021 and its Supplemental Policy Issuances, a MOA between RDC-CAR and Power Generating Companies for the utilization of ER 1-94 funds shall be executed. It specifically provides for the responsibilities of the RDC and the GenCos in the implementation of the projects to be funded under the fund.
The RDC, through NEDA as its Secretariat, is expected to issue a project call for proposals towards the last quarter of the year, depending on the available, accumulated financial benefits to be provided by the GenCos in the region. By PDIPBD, NEDA-CAR
