The Department of Public Works and Highways (DPWH) and the National Electrification Administration (NEA), with the approval of the Department of Energy (DOE), are set to collaborate on developing a compensation formula for the relocation of electric poles impacted by various government infrastructure projects.

In a report by Manila Bulletin, this proposed compensation framework would be discussed during a consultation scheduled for September 5, as part of the ongoing updating of the Joint Circular initially signed by the DPWH and DOE in 2017, and subsequently updated in 2019 and 2021.

Data by NEA revealed that 53,017 poles owned by electric cooperatives (ECs) have already been relocated to accommodate the government’s infrastructure expansion, with relocation costs estimated to exceed Php 4.3 billion.

Draft Circular No. 4, nearing finalization by the DPWH and DOE, mandates collaboration between NEA and DPWH to guarantee the swift and thorough relocation of distribution facilities that could interfere with national road projects, streamlining infrastructure development across the country.

As part of the agreed compensation formula, NEA will also oversee the spending of funds from the DPWH to the ECs. Furthermore, NEA will assist ECs in seeking regulatory support to recover costs not covered by the compensation provided under the joint guidelines.

Meanwhile, in cases where ECs delay or fail to relocate electric poles impacted by government projects, NEA will be responsible for enforcing appropriate actions against the utilities involved.

Additionally, NEA is required to submit biannual reports to the DOE, DPWH, and both houses of Congress on the progress of the relocation of obstructing distribution facilities and the payment of compensation to ECs.