NEA tells ECs to tap anti-bill shock program
By Manila Standard Business – May 13, 2024, 7:25 pm
State-run National Electrification Administration (NEA) asked electric cooperatives (EC) during a summit Friday to avail of Land Bank of the Philippines’ (LBP) “Anti-Bill Shock” lending program and other services that can help them resolve financial challenges.
NEA administrator Antonio Mariano Almeda initiated the forum following the yellow and red power alerts in April which triggered rising electricity costs, causing financial stress to many customers, including the EC member-consumer-owners (MCOs).
The tight power supply situation during the April supply month is expected to be reflected in the May billing of EC customers.
“Let’s take advantage of this forum for us to familiarize, strategize how we can make use of the facilities of the LandBank… Not only the anti-bill shock, but [also] other programs that can augment the financial situations, working capital of the electric cooperatives,” Almeda said.
LBP president and chief executive Lynette Ortiz welcomed the opportunity to speak and engage with the power co-ops, as the state-owned bank aims to reinforce its ongoing partnership with the Department of Energy (DOE) and the agencies attached to it.
“We’re going beyond lending facilities today. We are also looking to present to you our digital platform because Land Bank has invested and made our systems very robust to ensure that digital solutions are available to all our clients,” Ortiz told the EC general managers.
“LandBank is working very closely with NEA and the Department of Energy in a collaborative effort to support you and ensure reliable and affordable electricity supply nationwide… This is an excellent partnership that we further wish to intensify and cement,” she said.
The ‘Anti-Bill Shock’ lending program was introduced in April 2023 to assist power distribution utilities such as ECs to cushion the impact of high electricity bills due to increased consumption, especially during extremely hot months, on the MCOs.
NEA said that aside from the short-term credit facility, it also wants the power co-ops to consider working with state-owned financial institutions in terms of managing their retirement funds and cash flow.
“I’m sure Land Bank can offer better being a government financial institution,” Almeda said.
The NEA chief encouraged the EC general managers to explore other viable options through government financial institutions in managing their resources because he wants to “maintain the sanctity and restrictive nature of the retirement fund.”
Almeda also gave a marching order for ECs that have yet to safeguard their financial resources to “immediately to look for an accredited trust fund manager and to turn over the management of the retirement fund.”
The NEA chief said the EC retirement funds have to be strictly regulated. At least 113 representatives from 102 ECs attended the summit. Other topics discussed included the issues concerning the EC allied organizations, the power supply procurement plan (PSPP) and expiring emergency power supply agreements (EPSA) of some co- ops.
