AboitizPower signs financial aid agreement with host communities

AboitizPower IPO

AboitizPower subsidiaries have signed a memorandum of agreement (MOA) with their respective host communities regarding the financial benefits of the recipients.

This was based on Energy Regulations 1-94 (ER 1-94) allowing direct remittance of financial incentives to host communities for their immediate utilization.

Department of Energy (DOE) Undersecretary Felix William B. Fuentebella encouraged the local government units of the said communities to maximize the incentives from ER 1-94.

“Ipagkalat n’yo sa mga kababayan n’yo na ang laki ng benepisyong nakukuha n’yo sa pag-host ng power plants. You’re operating (a business) na kilowatt-hour ang benta. Wag po kayong papayag na may matumbang poste dahil hihina po ang kita n’yo. Wag po kayong papayag na may maputol o matirhan yung poste ng NGCP sa ilalim dahil mapuputol po yung supply n’yo ng pera para sa community n’yo. Sa pagpirma ninyong ito, diretsong mapupunta sa inyo ang pera,” Fuentebella said in a speech.

AP Renewables, Inc. (APRI) MakBan, Therma Mobile, Inc. (TMO), and SN Aboitiz Power (SNAP) are to give to their host communities P26.6 million, P1.3 million, and P10.5 million, respectively.

AboitizPower earned P171 million ER 1-94 funds from the total attributable energy sales of its generation facilities nationwide. This will be given to its other communities across the country.

“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 V. Rubio said.

The ER 1-94 fund can be utilized for the electrification programs in areas that still have no 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 M. Bernardo 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 mandates that host communities will get a share of centavo for every kilowatt-hour (Php 0.01 / kWh) sold by power generation plants operating in its area.