Energy Regulatory Commission Chairperson and CEO Agnes VST Devanadera applauded the recent enactment into law of R.A 11039 or “The Electric Cooperatives Resiliency Act.”
“The Electric Cooperatives Resiliency Act is a welcome development and will benefit the electric cooperatives (ECs) that get affected by natural calamities. Having the Electric Cooperatives Emergency and Resiliency Fund (ECERF) in place, the ECs will have a ready fund that they can tap to quickly restore distribution lines and networks damaged by typhoons and other natural calamities,” Devanadera said.
ECs are assured of the assisting funds in times of unforeseeable circumstances or force majeure, under the new law.
About 30 percent of the allotted fund will be reserved for the ECs’ disaster prevention, disaster preparedness, and disaster mitigation measures; while 60 percent will be used for the restoration or rehabilitation of the ECs’ damaged infrastructures by force majeure. The remaining percent will be put for the repayment of outstanding obligations incurred by the ECs in financing the rehabilitation of their damaged properties.
The Electric Cooperatives Emergency and Resiliency Fund will have an initial budget of P 750 million, which will be managed by the National Electrification Management (NEA). The said funding will be drawn from the National Disaster Risk Reduction and Management Council’s (NDRRMC) funds.
The two agencies is tasked to formulate implementing policies and ensuring the law’s effective implementation.
“This positive development will benefit the electric cooperatives and their member-consumers in terms of faster restoration of electricity and power facilities damaged by natural calamities,” she said.