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Energy Regulations No. 1-94 A. Financial Benefits to Host Communities Pursuant to ER 1 - 94, As Amended Legal Basis Section 5 (i) of Republic Act No. 7638, otherwise known as the "Department of Energy Act of 1992" Section 66 of Republic Act No. 9136, otherwise known as "Electric Power Industry Reform Act (EPIRA) of 2001," as detailed in rule 29, Part A of the Implementing Rules and Regulations of EPIRA. Policy Objectives To recognise and provide recompense for the contribution made by the host local government units or region. To lessen conflict of rights among host local government units, community and people affected, the energy resource developers or power producers, and the appropriate agencies of the national government. To promote harmony and cooperation among host local government units, the energy-resource developers or power producers and the appropriate agencies of the national government. Nature of Benefits/Scope of Application One-centavo per kilowatt-hour (P0.01/kWh) of the Electricity Sales which shall apply to Generation Facilities and/or energy resource development projects located in all barangays, municipalities, cities, provinces and regions. Generation facility and/or energy resource located in non-highly urbanized city
- Electrification Fund (EF) at 50% of one centavo per kWh (P0.005/kWh)
- Development and Livelihood Fund (DLF) at 25% of one centavo per kWh (P0.0025/kWh)
- Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF) at 25% of one centavo per kWh (P0.0025/kWh)
Generation facility and/or energy resource located in highly urbanized city
- Electrification Fund (EF) at 75% of one centavo per kWh (P0.0075/kWh)
- Development and Livelihood Fund (DLF) at 12.5% of one centavo per kWh (P0.00125/kWh)
- Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF) at 12.5% of one centavo per kWh (P0.00125/kWh)
Allocation/Application of Electrification Funds Priority shall be based on the following radiating order, namely: (i) Resettlement Area, (ii) Host Barangay, (iii) Host Municipality, (iv) Host Province, and (v) Host Region. The Availment Process for Electrification Funds
Requirements
Proposal containing the following information among others:
- detailed cost estimate
- Number of potential beneficiaries of household connection
Staking sheets (for grid electrification)
Board resolution by ECs requesting funding assistance for the propose project
Resolution from concerned LGUs requesting funding assistance for the proposed projects
Allocation of Non-Electrification Funds Development and Livelihood Fund (DLF) and Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF)
For non-highly urbanized city
Resettlement Area - 5%
Host Barangay - 20%
Host Municipality/City - 35%
Host Province - 30%
Host Region - 10
For highly urbanized city
Designated resettlement areas - 10%
Host Barangays - 30%
Host City/ies - 60%
Types of Funded Projects
Streetlights
Farm to Market Road
Multi-Purpose Pavement
Farm produce collection & buying station
Rice/Corn Milling
Communal Irrigation System
Small water impounding projects
Fish ports
Seawalls
Day care center
School Building
Public market
Slaughter house
Public drainage/sewerage system
Bridge
Flood control measures
Environment Enhancement Projects
Fire truck
Waste Management Equipment
- Garbage
- Dump Truck
- Bulldozer
- Backhoe/Loader
Construction/Installation of Waste Treatment Facility
Sanitary Landfill Development
Development of Waste Recovery Warehouse
Construction of Concrete Sanitary Waste Water Collection Facility
Livelihood Projects
Food production/processing
Ice Plant
Livestock and poultry production
Handicraft production
Aquaculture
Skills training for LGU-administered livelihood projects
Vegetable seed farm
Small-scale services livelihood projects:
- Rice/Corn Milling
- Carpentry/Furniture Shop
- Radio, Refrigerator, TV servicing
- Garment weaving
- Engine mechanic services
- Electrical wiring and design
- Dressmaking
Gold and silver trading and jewelry making
Blacksmith shop
Welding shop
Reforestation and Watershed Management Projects
Improvement of forest cover
Vengineering measures
Community-based forestry managementAgro-forestry
Conservation of MangrovesSeedling nursery
Health Related Projects
Water supply system
Municipal Hospital
Medical equipment/facilities
Medicinal plant gardens




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