DOE fast-tracking release of ER 1-94 funds to LGUs

By Lenie Lectura -March 6, 2020
from Business Mirror

THE Department of Energy (DOE) said it is expediting the release of funds identified under the Energy Regulation 1-94 program to host communities of energy generation firms and energy resource developers.

Under the program, energy generation companies and energy resource developers are required to directly provide their ER 1-94 benefits, equivalent to 1 centavo per kilowatt-hour (kWh) of total electricity sales, to their host communities.

Collected funds would then be used by local government units (LGUs) for socioeconomic development and provide more efficient utilization of the funds, which used to be released by the DOE.

“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.

Cusi said the agency is continuously working to expedite the settlement of previously stranded ER 1-94 funds, and is aiming to complete remittances by June 2020.

Of the existing P6.4 billion, a total of P5.2 billion has already been earmarked by the DOE’s ER1-94 Reconciliation Team to the concerned LGUs and will be remitted upon their compliance with the requirements. Meanwhile, P432 million is currently being processed for immediate fund transfer.

The DOE has already remitted a total of P750 million to the host beneficiaries’ accounts nationwide.

The DOE’s ER1-94 Reconciliation Team, co-led 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.