Kepco signs moa with LGUs

FOR an effective administration, management, utilization and implementation of the financial benefits for the host communities through Energy Regulations (ER) 1-94, Kepco SPC Power Corp. executed memoranda of agreement (MOA) for the establishment and administration of trust accounts with local government units (LGUs) in Cebu.

The MOA was signed between Kepco SPC president and chief executive officer Jong Ryoon Yoon and heads of the LGUs of Cebu Province, Naga City and Barangay Colon, Naga City in the last quarter of 2019.

Gov. Gwendolyn Garcia represented Cebu Province; Vice Mayor Kristine Vanessa Chiong, Naga City; and Barangay Captain Jeffrey James Saya-ang, Colon.

With the amended regulations under the Department of Energy’s (DOE) ER 1-94, the host communities can immediately utilize its fund and enforce certain projects.

The ER 1-94 created a program that intends to recompense for the contribution made by the communities hosting energy generating facilities and/or energy resources.

The host communities will get a share of one-centavo per kilowatt-hour (P0.01/kWh) of the total electricity sales of the power generating facilities in the area.

Fifty percent of the one centavo is allocated for an electrification fund or projects supporting the total electrification, 25 percent for projects supporting development and livelihood opportunities, and the remaining 25 percent is for projects supporting environmental and health agenda.

As of December 2019, Kepco SPC has a total allocation of P29 million for the Development and Livelihood Fund (DLF) and another P29 million for Reforestation, Watershed Management, Health and Environmental Enhancement Fund (RWMHEEF) wherein the host communities can avail themselves of the financial benefits.

The benefits under DLF and RWMHEEF will be distributed in this manner: 25 percent for Barangay Colon (host barangay), 35 percent for Naga City Government (host city), 30 percent for the Cebu Provincial Government (host province) and 10 percent for the host region.

On the other hand, the MOA signing with the 13 distribution utilities/electric cooperatives serving the host community and the entire Central Visayas for the administration of electrification fund will be done early this year. The electrification fund will be allocated to concerned distribution utilities following the Radiating Order based on the DOE’s Department Circular 2018-08-0021. (S)