By Lenie Lectura – September 2, 2020
from Business Mirror
AboitizPower Corp. said its fund remittances to its host communities have reached P508.2 million, which they can use for initiatives to combat Covid-19 under the government’s ER 1-94 program.
The power firm and its partners have directly downloaded P148.2 million to 174 host beneficiaries across the country, with around P34 million still awaiting turnover. Meanwhile, another P359.97 million from various AboitizPower-led generation companies, accumulated as of 2019, has already been remitted by the Department of Energy (DOE) to the host beneficiaries.
Under the program, power firms set aside P0.01 per kilowatt-hour of their total electricity sales as financial benefits to host communities, which shall be allocated to 3 types of funds: one-half of one centavo for the Electrification Fund of the concerned distribution utilities; 1/4 of one centavo for the development and livelihood fund; and another 1/4 of one centavo for the reforestation, watershed management, health and/or environment enhancement fund of the host local government units (LGUs).
It is a policy under the DOE Act of 1992 and Electric Power Industry Reform Act of 2001 (Epira) which states that host communities will receive shares generated by power plants operating in its area.
Recently, the DOE issued a circular, stating that the remitted funds could be utilized for initiatives to combat the effects of Covid-19.
“We are glad that these funds are now with our communities as these will ensure they have the resources to fund crucial projects in their areas. Recent developments have also allowed them to use these remittances specifically to bolster their campaign against Covid-19,” AboitizPower President and CEO Emmanuel V. Rubio said.
With the new circular covering ER 1-94 funds, host LGUs can now use these shares to help manage the effects of the new virus, in accordance with the Bayanihan to Heal as One Act. This includes the facilitation of mass testing by providing and constructing facilities, as well as acquiring proper medical testing kits.
“More than the fact that this is the obligation of power generation companies to its host communities, this is a manifestation of our commitment to supporting our partners in any way we can, especially during these challenging times,” Rubio added.
AboitizPower subsidiaries Therma South Inc. (TSI) and Hedcor were the latest to remit to their host communities, with about P26 million already downloaded to Davao City alone. Around P36 million has also been remitted by TSI and DOE to other various LGUs in the Davao region.
These financial benefits have funded several projects across AboitizPower’s host communities, including Covid-19 initiatives in some cities and municipalities, which AboitizPower and its partner LGUs work closely on to identify and implement.
PHILIPPINE POWER INSIGHTS 