Loan payments from electric coops declined in H1—NEA

By Lenie Lectura – September 24, 2020
from Business Mirror

The country’s electric cooperatives (ECs) posted a total of P773.91 million in loan payments for the first six months of the year, the National Electrification Administration (NEA) said on Wednesday.

The amount, which translates to 95.90-percent collection efficiency, is 27 percent lower than the P1.098 billion registered in the same period last year.

Milagros Robles, NEA acting director of Finance Services Department, said most ECs utilized their advance payment to pay for their dues during the period. This and the extension for amortization payments were the reasons for lower collection.

NEA Administrator Edgardo Masongsong earlier extended for 30 days the payment deadline for loan amortization of ECs fell due in the first and second quarters. Many parts of the country were under lockdown during the period.

The top 5 highest-paying ECs in the list are Nueva Ecija II Electric Cooperative Inc.- Area 2, Occidental Mindoro Electric Cooperative Inc., Central Pangasinan Electric Cooperative Inc., First Laguna Electric Cooperative Inc., and Misamis Oriental I Rural Electric Service Cooperative Inc.

The agency offers various loan windows to qualified ECs, such as regular, calamity and concessional loans, stand-by and short-term credit loans, single-digit system loss, renewable energy, and modular generator sets loan.

The agency also offers 10-year calamity loans at 3.25 percent annual interest.

NEA is responsible for the electrification of rural communities, regulating 121 ECs.