TAGUIG CITY – The Department of Energy (DOE)’s revised Energy Regulations No. 1-94 (ER 1-94) program is meant to empower the communities hosting power generating facilities and energy resource development. Along with this is the DOE Reconciliation Team’s validation of the total amount of financial benefits due to the concerned recipients of power generating facilities in the country.

The DOE's ER1-94 Reconciliation Team, co-lead by the Financial Services and the Electric Power Industry Management Bureau, is tasked to ensure the proper settlement and remittance of funds to the designated program beneficiaries.

Under the ER1-94 program, the host region, province, city, municipality, and/or barangay of power generation companies and energy resource developers are entitled to PhP0.01 per killowatt-hour of its total generated electricity sales. Collected funds could then be utilized by local government units (LGUs) for various development and livelihood, reforestation, watershed management, and health and environment enhancement projects.

“Notable progress has been made, particularly in the administration of financial benefits to host communities. We will continue to ensure the speedy and sustained regulation, settlement, and full remittance of these funds, which are urgently needed by LGUs to help address their respective needs,” Energy Secretary Alfonso G. Cusi said.

He added that the Department is continouously working to expedite the settlement of previously stranded ER 1-94 funds, and is aiming to complete remittances by June 2020.

Of the existing PhP 6.4 billion, a total of PhP5.2 billion has already been earmarked by the DOE ER1-94 Reconciliation Team to the concerned LGUs and DUs and will be remitted upon their compliance with the requirements.  Meanwhile, PhP432 million is currently being processed for immediate fund transfer.

The DOE has already remitted a total of PhP750 million to the host beneficiaries’ accounts nationwide.

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