The National Electrification Administration (NEA) has extended loans to various electric cooperatives totaling P450.66 million as at end-May this year.
The loans benefited 16 electric cooperatives.
Of the amount, P225.81 million funded the capital expenditure projects of 13 ECs while four of their number applied P162 million as capital funds.
The Misamis Oriental I Rural Electric Service Cooperative borrowed P12.85 million for the purchase of a modular generator set while the Lanao del Norte Electric Cooperative availed of a P50 million short-term credit facility.
The NEA said it has offered electric cooperatives financial assistance through an enhanced lending program consisting of regular, calamity and concessional loans, stand-by and short-term credit loans, single-digit system loss, renewable energy and modular generator set loans.
The NEA also reminded ECs to countercheck and validate the power bills of power suppliers.
Regulatory Advisory 2023-004 dated 5 June reminds ECs the Electric Power Industry Reform Act of 2001 mandates the supply of electricity at least cost to consumers.
The NEA said ECs need similarly validate and verify the pass-through generation charges billed by contracted generation companies which are then passed on to member-consumer owners.
“With the decrease of the fuel cost in the market, ECs are directed to strictly scrutinize the power bills received from their contracted generation companies, calculate the monthly generation charges and fuel cost computations including the relevant heat rates. There is a need for ECs to ensure that these variable costs conform to the terms of their respective approved Power Supply Agreements and to the current cost of fuel in the world market,” the NEA said.
NEA serves as supervisory body over 121 ECs nationwide as regards distribution parameters as systems loss and reliability, and circuit kilometers and substation capacity to ensure they remain operationally reliant and technically efficient in delivering service.
