Power firm, beneficiaries ink ER 1-94 MOAs

Santiago City—Renewable energy company SN Aboitiz Power has signed the Memorandum of Agreement for the implementation of the amended Energy Regulations No. 1-94 (ER 1-94), marking the start of a streamlined process of releasing financial benefits from power generators to local governments.

Power firm, beneficiaries ink ER 1-94 MOAs
Nueva Vizcaya Gov. Carlos Padilla (third from right) shakes hands with SNAP president and CEO Joseph S. Yu to seal the remittance pact. Jessica Bacud
SNAP is set to turn over more than P10.5 million to their host communities based on the total attributable energy sales of its Ambuklao, Binga, Magat, and Maris hydro facilities.

“We thank the Department of Energy for being steadfast in their commitment to streamline the implementation of ER 1-94. Through this improved process, host communities may now immediately reap their share of the company’s revenue from hosting generation facilities,” remarked SNAP president and CEO Joseph S. Yu.

“We are excited to witness and to continuously partner for the conscious and consistent positive change that these additional funds will bring to our communities,” Yu stressed.

“We thank the DOE and SNAP for the new scheme on the direct remittance of ER1-94 funds. We look forward to effectively utilizing the funds, as stated in the Implementing Rules and Regulations,” Nueva Vizcaya Gov. Carlos Padilla said during  the ceremony held in Zen Hotel in Santiago, Isabela.

The ER 1-94 program is a policy under the Department of Energy Act of 1992 and Electric Power Industry Reform Act of 2001. 

The program seeks to recompense for the contribution made by the communities hosting Energy Resources and/or Energy Generating Facilities. These host communities will get a share of one centavo for every kilowatt-hour sold by power generation plants operating in their areas.

Of the one centavo per kilowatt-hour, 50 percent will be used in the electrification of the community; 25 percent will be earmarked for the Development and Livelihood Fund (DFL); and the other 25 percent will be allocated for Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF).

Through the DOE Department Circular 2018-08-0021, power generation companies can now directly download the ER 1-94 funds related to DFL and RWMHEEF to their host communities. 

Streamlining the release of funding will ease the process of relevant implementing projects that benefit the host communities.

Local chief executives from the provincial, municipal and barangay levels were present during the MOA signing ceremonies held last September 5.

For SNAP-Benguet, the delegation was led by Governor Melchor Diclas. Meanwhile, for SNAP-Magat, Ifugao Gov. Jerry Dalipog, Isabela Board Member Edward Isidro, and Nueva Vizcaya Gov. Carlos Padilla also showed their support for the program.

SNAP Group is a joint venture between SN Power of Norway and AboitizPower. It supplies clean, renewable and dependable energy through the operation of the 360- to 388-MW Magat Hydroelectric Power Plant (HEPP) on the border of Isabela and Ifugao, the 8.5-megawatt (MW) Maris Main Canal HEPP as well as the 105-MW Ambuklao HEPP and the 140-MW Binga HEPP in the province of Benguet.

Topics: renewable energy , SN Aboitiz Power , Department of Energy , Joseph S. Yu
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