Financial Benefits to Host Communities Under ER 1-94, as Amended

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 recognize 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
    1. Electrification Fund (EF) at 50% of one centavo per kWh (P0.005/kWh)
    2. Development and Livelihood Fund (DLF) at 25% of one centavo per kWh (P0.0025/kWh)
    3. 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
    1. Electrification Fund (EF) at 75% of one centavo per kWh (P0.0075/kWh)
    2. Development and Livelihood Fund (DLF) at 12.5% of one centavo per kWh (P0.00125/kWh)
    3. 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:
    1. detailed cost estimate
    2. 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

Workflow of Activiites for the Availment of the Electrification Fund

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
    1. Garbage
    2. Dump Truck
    3. Bulldozer
    4. 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:
    1. Rice/Corn Milling
    2. Carpentry/Furniture Shop
    3. Radio, Refrigerator, TV servicing
    4. Garment weaving
    5. Engine mechanic services
    6. Electrical wiring and design
    7. 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 management
  • Agro-forestry
  • Conservation of Mangroves
  • Seedling nursery

Health Related Projects

Water supply system

  • Municipal Hospital
  • Medical equipment/facilities
  • Medicinal plant gardens

Sample Format for Project Proposal
Workflow of Activiites for the Availment of the Non-Electrification Fund
Supporting Documents  
Supporting Documents
Supporting Documents