NEA collected nearly P2.3B in 2019, exceeded target

By Jordeene B. Lagare – March 15, 2020
from The Manila Times

THE National Electrification Administration (NEA) has surpassed its 2019 collection target after receiving loan amortization payments of almost P2.3 billion from electric cooperatives (ECs).

In a statement on Friday, the NEA said it collected P2.297 billion last year, P338 million more than its P1.959-billion goal, based on the collection performance report submitted by the agency’s Finance Services department.

The amount was also 15 percent higher than the P2.263 billion collected in 2018, said Milagros Robles, the department’s acting director.

The NEA attributed the improvement to the increase in advance payment of amortizations and outstanding loans of ECs.

“The early payment of outstanding loans by some ECs amounting to P94.35 million and increase in advance payment made by ECs of P283 million contributed to the attainment of high collection efficiency,” Robles said.

The top five highest-paying ECs were Occidental Mindoro Electric Cooperative Inc., Nueva Ecija 2 Electric Cooperative Inc.-Area 2, Misamis Oriental 2 Rural Electric Cooperative Inc., Central Pangasinan Electric Cooperative Inc. and First Laguna Electric Cooperative Inc.

The agency has been offering financial assistance to ECs through various loan windows to bankroll their various capital expenditure projects and rehabilitation of power distribution systems damaged by calamities.

The lending program includes regular, calamity and concessional loans; stand-by and short-term credit loans; single-digit system loss loans; renewable energy loans; and modular generator sets loans.

The NEA also provides short-term credit facility to finance the EC’s monthly shortfall in settling their power accounts with generation companies (gencos) and the National Grid Corp. of the Philippines.

This is meant to strengthen the power cooperatives creditworthiness with gencos and the electricity market operator.