DOE, Landbank sign MOU to bolster community support through ER 1-94 Program

The Department of Energy (DOE) has entered into a Memorandum of Understanding (MOU) together with the Landbank of the Philippines (LBP) to optimize the allocation and use of funds aimed at aiding host communities, with a particular focus on those receiving benefits through the Energy Regulations 1-94 (ER 1-94) Program.

The agreement, which was signed by Undersecretary Rowena Cristina Guevara and LBP Senior Vice President Althon C. Ferolino, created a trust account designed to simplify fund access for communities hosting energy projects.

Under this program, energy generation companies contribute one centavo per kilowatt hour (kWh) of generated power to assist the communities that host their projects.

The energy department has identified barangays, as well as Indigenous peoples (IPs) and Indigenous cultural communities (ICCs) in remote regions, especially those near small hydropower plants, and newly established generation facilities, have not yet set up the necessary trust accounts mandated by the ER 1-94 Program. 

“Setting up a trust account is a crucial step for these host communities to access and utilize  these funds. Without an operational trust account, these communities may miss out on valuable  support for local projects that could enhance infrastructure, education, health, and livelihood  opportunities,” said Undersecretary Guevara.

Furthermore, the MOU includes a provision where LBP agreed to waive service charges for accounts not meeting the maintaining balance requirement. 

This initiative highlights their dedication to making financial services fair and accessible, especially for communities that might have struggled to maintain a minimum balance.

The DOE prioritized expanding collaboration with government and private sector partners, including LBP, to provide improved assistance for ER 1-94 beneficiaries, like distribution utilities, electric cooperatives, and host communities, particularly Indigenous Peoples (IPs) and Indigenous Cultural Communities (ICCs).

A major objective is to address the financial accessibility issues that these beneficiaries face, particularly in meeting the program’s deposit account requirements.

“With LBP’s extensive reach, we are confident that this initiative will lead to a more efficient and effective use of our ER 1-94 funds,” noted Undersecretary Guevara.