MANILA, Philippines — Aboitiz Power Corp. has struck a deal with communities hosting its power projects for easier access to financial revenue shares.
Subsidiaries of AboitizPower namely AP Renewables Inc. (APRI) MakBan, Therma Mobile Inc. (TMO), and SN Aboitiz Power (SNAP) signed a memorandum of agreement (MOA) with their respective beneficiaries on the revised provisions of Energy Regulations 1-94 (ER 1-94).
ER 1-94 introduces the direct remittance of financial benefits to host communities for their immediate utilization.
Through DOE Circular 2018-08-0021, power generation companies can now directly download the ER 1-94 fund to their host communities. Streamlining the release of funding will ease the process of implementing projects that benefit the host communities.
APRI MakBan, TMO, and SNAP are set to turn over P26.6 million, P1.3 million, and P10.5 million, respectively, to their host communities.
APRI Makban operates a geothermal facility in Laguna and Batangas, while TMO has four floating power barges moored in Navotas City.
SNAP, on the other hand, owns and operates the 380-megawatt (MW) Magat hydropower plant on the border of Isabela and Ifugao, the 8.5-MW Maris run-of river hydropower plant in Isabela; the 105-MW Ambuklao hydropower plant in Benguet; and the 140-MW Binga hydropower plant also in Benguet.
“Today’s event is a prime example of real partnership and teamwork between AboitizPower, our local host communities, and the Department of Energy. I am sure our partnership and collaboration will not end here. There are still a lot of things that we can do, and a lot of things that we can achieve when we work together,” AboitizPower chief operating officer Emmanuel Rubio said.
The ER 1-94 program is a policy under the Department of Energy Act of 1992 and Electric Power Industry Reform Act of 2001 (EPIRA), which stipulates that host communities will get a share of one centavo for every kilowatt-hour (P0.01/ kWh) sold by power generation plants operating in its area.
In 2018, AboitizPower generated P171 million ER 1-94 funds based on the total attributable energy sales of its various generation facilities across the Philippines. The funds will soon be turned over to its other communities all over the country.
Meanwhile, DOE Undersecretary Felix William B. Fuentebella urged the local government units involved in the signing ceremony to maximize their financial benefits from ER 1-94.
ER 1-94 fund can be used by host beneficiaries for the electrification of areas or households that have no access to power, development and livelihood programs, as well as reforestation, watershed management, health, and environmental enhancement initiatives.
“Let us all work together to further strengthen our partnership so we can maximize opportunities moving forward for the ultimate benefit of the communities we serve,” AboitizPower Generation Group chief operating officer Felino Bernardo said.