Bayombong, Nueva Vizcaya—The provincial government here will be opening two bank accounts to siphon fund benefits from power generating companies operating in the province.
Vice Gov. Lambert Galima,Jr. said bank accounts will be opened through the Development Bank of the Philippines, which is required by the Department of Energy for the transfer of funds from the First Hydro Power Corporation, SN Aboitiz Power Magat, Inc., and the Casecnan Multi-purpose Irrigation and Power Project.
“We have already authorized our Provincial Treasurer Rhoda Moreno to execute this act so that we can properly and legally receive these fund benefits,” Galima said during a recent session of the provincial board.
The bank accounts to be opened, he added, will separately keep the Development and Livelihood Fund and the Reforestation, Watershed Management, Health and/or Environment Enhancement Fund.
Department Circular 2018-08-0021 requires the DOE to devise ways and means of giving direct benefits to the province, city or municipality, especially the community and people affected, and equitable and preferential benefit to the region that hosts the energy resource and/or the energy-generating facility.
DOE Department Order 2019-01-001 provides the Internal Guidelines and Procedures for the Transfer of Existing Funds in Relation to the Financial Benefits under Energy Regulations 1-94.
ER 1-94 policy objectives are to recognize the contributions made by the communities and people affected; to lessen conflict of rights; and to promote harmony and cooperation among the LGUs/Region and the Energy Resource Developers and/or power producers.
ER 1-94 states that the generation company and/or energy resource developer should set aside one centavo per kilowatt hour (P0.01/kWh) of the total electricity sales as financial benefits to host communities of such generation facility, shared among the three local government units that is 60% for municipalities and barangays; 30% for the province; and 10% for the host region.
Galima said the new Department Order changed the practice of remittance of fund benefits by power companies from paying to the DOE and release them to Local Government Units to the new system of direct remittance to the host LGUs.