Rural electrification has always been on top of the Government’s policy over the past decades. Government strongly believes that provision of electric services will yield more opportunities for improved quality of life, greater access to basic services and better infrastructure for rural development. Rural electrification therefore, is greatly directed towards socio-economic growth of the marginalized sectors, the fisher folks and farmers living in remote, far-flung, and un-electrified barangays of the country.

Historical Performance and Program Management 

In support of the Government’s efforts to alleviate poverty, DOE launched a massive and focused action to increase and accelerate access to electricity services by the country’s un-electrified communities.

In 1999, the Accelerated Barangay Electrification Program (ABEP) was launched with the initial partnership of the following energy agencies: DOE, National Electrification Administration (NEA), National Power Corporation through its Small Power Utilities Group (NPC-SPUG), and PNOC-Energy Development Corporation (PNOC-EDC). Prior to the launching of ABEP, barangay electrification level only stood at 76.9%, having energized only 32,281 out of 41,945 total barangay coverage.

In 2000 the ABEP was renamed the “O’Ilaw Program.” Under the O’Ilaw Program, the IPPs were encouraged to participate as part of their corporate social responsibility. Under the O’ Ilaw and IPP Partnership, the Adopt-a-Barangay Scheme and Advance Financing Scheme were adopted. During this period, three IPPs participated, namely, PNOC-EDC, Mirant Philippines and Kepco Ilijan Corporation. The program also led to the creation of the Foundation for Rural Electrification and Economic Development (FREED) as mechanism to mobilize private fund for rural electrification. FREED was composed of Nestle Philippines, Pilipinas Shell Petroleum Corporation, First Private Power Corporation, CEO’s Inc, Credit Suisse and Smart Communications.

The Expanded Rural Electrification 

To further strengthen and integrate efforts on rural electrification by both the Government and the private sector, and to further assist the DOE develop innovative and sustained policies and strategies consistent with the power sector reforms embodied in the Electric Power Industry Reform Act of 2001 or “EPIRA,” the Expanded Rural Electrification Program (ER Program) was established and an ER Program Team was created in April 2003. Unlike its predecessors, which focused was on barangay electrification; the ER Program involves the electrification of sitios and households.
 

Rural/Missionary Electrification in the Context of the EPIRA

Rule 7 of the EPIRA states that the obligations of the Distribution Utilities (DUs) include the provision of universal service within its franchise areas, over a reasonable time, including unviable areas, as part of its social obligations. The DUs however, must sustain the economic viability of its operations. Adjoining DUs may be allowed to service some areas that might not be viable for the relevant franchise holder but viable for other DUs.

In the event that after the DUs have already done their best but there still barangays remained unelectrified, Rule 14, Section 1 of the EPIRA states that such areas shall be opened to other qualified third parties.

Likewise, in the Rule 13, of EPIRA, SPUG shall be responsible for providing power and its associated power delivery systems in areas that are connected to the grid and cannot be serviced by DUs and other qualified third parties

Objective of ER Program and the ER Program Team Thrust 

The ER Program envisaged to achieve 100% barangays electrification by 2008 and 90% household electrification by 2017. One of the main thrusts of the ER Program Team is to formulate and recommend policies and guidelines to implement rural/missionary electrification with greater private sector participation in a holistic and sustainable manner. Many of the previously electrified barangays particularly those of solar projects were found to be short lived due to absence of a strong sustainable mechanism. The ER Program Team is now spearheading the development of various innovative service delivery mechanisms towards achieving greater access to electricity services.

Expanded Rural Electrification... Read more

The Expanded Rural Electrification (ER) Program integrates the rural and missionary electrification efforts of the government in collaboration with the private sector, non-government organizations, and several donor-funded projects with the view to attaining total barangay electrification by 2008 and 90% household electrification by 2017.
 

The Reconstituted ER Program Team

To cope up with the recent developments in the electric power sector, the ER Program Team was reconstituted through the Doe Circular No. 2006-04-003 dated April 2006. The new ER Program Team will continue manage the implementation of rural and missionary electrification program for the purpose of achieving the country’s total electrification, refocus and strengthen rural and missionary electrification through the integrated and synchronized approach.
 

Responsibilities of the Reconstituted ER Program Team

The following are the responsibilities of the reconstituted ER Program Team:

• Oversee the implementation of ER Program
• Recommend policy and program directions of the ER Program
• Formulate and refocus the Program’s goals to address “present” concerns including sitio and household electrification
• Conduct regular monitoring and evaluation of the Program and feedback system to concerned agencies and participants
• Develop timeline, reform action plans, targets and detailed implementation schedule for barangay and household electrification
• Identify the coverage areas of the various stakeholders/key players and set/coordinate with the timetable for project implementation
• Institute collaborations among players
• pearhead the promotion of the program

   

  Other Mandates

• Review and endorse projects and activities in relation to off-grid electrification
• Serves as clearing house of all rural and missionary electrification initiatives in the country
• Coordinate with other entities such as QTP’s, financing institutions, NGOs, and private entities, whenever necessary to provide insights and valuable inputs to the ER Program Team in the exercise of its mandate

   

  The New ER Program Team Structure

  A. The Oversight Committee

  This committee is chaired by Undersecretary Melinda L. Ocampo, DOE and co-chaired by Administrator Editha S. Bueno, NEA. Its members are representatives from DOE-Energy Policy and Planning Bureau (DOE-EPPB), DOE-Electric Power Industry Management Bureau (DOE-EPIMB), DOE-Energy Utilization Management Bureau (DOE-EUMB), NPC-Small Power Utility Group (NPC-SPUG). The committee also composed of honorary members from National Economic and Development Authority (NEDA), Department of Finance (DOF), Department of Budget and Management (DBM) and other players if deemed necessary.

  B. Secretariat Support

  The DOE-Rural Electrification Administration and Management Division will serve as the ER Program Team-Secretariat, who will be assisted at the minimum of two (2) representatives from DOE-EPPB, DOE-EUMB, NEA and NPC-SPUG.

  C. Inter-Agency Technical Working Group (TWG)

  The functions of the Inter-Agency TWG is to provide assistance to Oversight Committee and assist in the development of sub-programs, review ans assessment of existing programs, and formulate strategies for the efficient implementation of ER Program. The TWG is composed of three (3) sub-committees namely: Committee on Policy, Committee on Program Implementation and Operations and Committee on Investment and Financing.

  1. Sub-committee on Policy The functions of the Sub-committee on Policy are:

• Review the objectives of the ER Program and develop guidelines and specific strategies for its implementation;
• Conduct regular assessment of the implementation of all program components and activities, identify gaps and issues, and recommend the continuation or cessation of certain programs as maybe consistent with law and Government policies;
• Review existing ER policies and guidelines and evaluate/assess their effectiveness in ensuring the ER targets are achieved as planned in a timely manner;
• Develop policies to address the isues/gaps affecting program implementation;
• Provide institutional support to the program implementation.

   

  2. Sub-Committee on Program Implementation and Operations The Sub-Committee on Program... Read more

Guidelines for the Implementation of the Reduction in Rate of the Electric Cooperatives Due to The Condonation of debts

Pursuant to Section 60 of Republic Act No. 9136 or the Act, Rule 31 of the Implementing Rules and Regulations (IRR) of the Act and section 5 and 6 of Executive Order (EO) No. 19, the Energy Regulatory Commission (ERC) hereby adopts these Guidelines to govern the application for rate reduction filed by the Electric Cooperatives (ECs).

• Click to Read More on the Guidelines for the Implementation of the Reduction in Rate

Annexes:

• Annex A Schedule A - Listing of Assumed Loans 

• Annex A Schedule B - Sales by Customer Class 

• Annex B Schedule C - Rate Reduction Calculation

• NEA Loan Assumption Application 

• Notice of Application