Power coops told to comply with COA recommendations recommendations

MANILA, Philippines — The National Electrification Administration (NEA) has enjoined electric cooperatives nationwide to strictly adhere to the recommendations of the Commission on Audit (COA) on the implementation of sitio electrification program (SEP) projects.

NEA urged all electric cooperatives to comply strictly with the timeline set for the project completion and energization in the memorandum of agreement (MOA) between the NEA and the cooperatives to avoid suspension of further release of subsidy funds.

Item 3.a in the the MOA states that “the project(s) should be implemented and completed within six months after receipt of the subsidy appropriations by the recipient from NEA.”

NEA said if projects cannot be completed within the initial six-month period, electric cooperatives must submit written request for extension within 30 days before the deadline.

Item 3.b also states that the “NEA shall act on the request for an extension within the same 30-day period. Furthermore, any extension of the said six-month period shall, in no case, exceed three months.”

The provisions of the MOA were reiterated by NEA following COA’s issuance of an audit observation memorandum regarding the implementation of CY 2022 audited electric cooperatives’ subsidy funded projects, particularly the delays incurred in the construction of the distribution line under the 2011 and 2019, and in the energization of four projects under 2014 to 2019 SEP.

NEA is mandated to carry out the total electrification of the country on an area coverage basis, with the 121 electric cooperatives as the implementing arm.

It is looking to achieve total electrification in the country by 2028.