Interventions by Senator Risa Hontiveros related to the National Electrification Program
September 29, 2023
Interventions by Senator Risa Hontiveros related to the National Electrification Program
Senate Finance SubCommittee "E" hearing on DOE, ERC, and NEA 2024 budget
29 September 2023
Senator Risa Hontiveros (SRH): Sa una po sa access o electrification.. Nangako ang Pangulo sa kanyang ikalawang SONA noong Hulyo na tatapusin nya ang elektrikasyon sa buong bansa bago sya bumaba sa kanyang pwesto sa 2028.
And as far as I can recall, the 100% total household electrification was promised by the previous administration to have been achieved as early as 2020. Hindi naman siguro COVID na naman ang idadahilan, dahil 2020 tayo nakaranas ng pandemic. In short, hindi ito na-accomplish ng nakaraang administrasyon.
Unang tanong, Mr. Secretary, ano ang estado ng rural electrification sa bansa ngayon? Ilang porsyento na ba ng mga tahanan ang may koneksyon at nakakagamit ng kuryente para sa kaginhawahan ng kanilang pamumuhay?
Secretary Popo Lotilla: What we have here is the status of the electrification program which shows that broken down by the three main grids you have 98.89 percent for Luzon, 97.61 percent in Visayas at 88.12 percent in Mindanao and for the entire country it's 96.17 percent and this is based on census of 2015.
As I've said because we have updated the electrification metrics, this has actually in effect worsen over all from based from the 2020 census. Mr Chairman I just would like to address the observation of Senator Hontiveros that this has been promised in the previous administrations. The explanation is also that the measures and targets have changed for example, the last time I was here in 2005, 2006, the measure was that if there is just one post in one barangay, it is considered energized but then we have been improving across the years also the measure and that became the barangay itself, the main center of the barangay, as households that are connected then later we expanded to sitios so not only the barangay proper but also the sitios. Now we are down to households.
So if we're going to talk about in comparison to the rest of ASEAN, in the case of Indonesia, therefore, they are just below the province level. The district, so they can say, it's 98 percent energized but it is to the same level that we are looking at it which is household. Definitely, this is a more ambitious target that we are setting and we are not solely relying on of course the budget, by the end of this year, Senators the law that both of yoy worked on to approve in the previous Congress which is the micro grid act is we are going to hold the auctions for them micro grid systems over 300 areas in the country. So that would be a big help and we hope to encourage private sector to come in and take up the challenge of not only providing power to the unserved, but to increase the number of hours of services from sometimes 4 hours or 6 hours or 12 hours to more acceptable levels preferably on a 24-hr basis. We have to accept the fact that this is a major challenge for us all. So that's on the sitio electrification.
SRH: Thank you, Secretary and babalikan ko rin po yung punto tungkol sa increasing the number of hours of service to household para masabi talaga ng mga pamilya na reliable at dependable ang electricity supply pero mukhang hindi lang ang measure o metrics ang magkakaiba pero baka rin yung databases na sina-cite kasi ang claim nga ng department, 96 percent ang electrification absed on the 2020 census pero kung titingnan naman natin -
Lotilla: 2015, Senator.
SRH: I'm sorry even earlier, 2015
Lotilla: That's why it actually worse than in 2020
SRH: And because I'm sure the one factor that is always cited is the pandemic. Sige po, so 96 percent based on the 2015 census, pero pag tiningnan naman po natin yung 2023 the data of electric cooperatives, it pegs electrification at only 89 percent. based on their coverage I see the good NEA administrator nodding his head, kinoconfirm po ng NEA ito, 89 percent. Kung nakatingin nga lang ang department sda lumang census, hindi nga natin maaachieve yung 100 percent target.
Lotilla: Senator just a clarification, the electric coops figure is just reflecting the electric coops themselves we still need to add the prove distribution utilities so that tends to bring up the numbers, but still yes we do not, it cannot retract from the fact that it's still a lowered number than what we would like to see.
SRH: So dahil bigo yung previous administration na makamit ang 100% electrification, ano naman ang kakaibang strategy ng kasalukuyang administrayson na makamit ito 5 years from now? At May target ba bawat taon?
Interestingly, sabi nyo nga about 11 percent of households are yet unelectrified so parang nashashadow nyo o napaparallel nya yung data ng electric coops. So maybe proportionally it does leave 11 percent of household yet electrified. Paano po yung or ano yung bagong istratehiya para maelectrify lahat at ano ang taon-taong targets?
Lotilla: As we have said we are adjusting to a more recent census which is 2020 then I have mentioned the Microgrid Act roll out, then we have, that's why the request of NEA for a bigger budget and for a special provision in the budget that would allow NEA to actually utilize the other electric cooperatives which are better performing to implement the electrification in electric coops that are unable to liquidate their previous allocations so we would like to request the help of the committee for that special provision that would add the additional flexibility in the implementation.
Usec Rowena Cristina L. Guevara: Because we know that there's a big difference in the year of the census we decided to adjust the numbers based on the projected population growth so that we will really meet the 100 percent by 2028.
SRH: Salamat, First I'm glad to hear that NEA intends to let the better-performing Coops make up the shortfall of yung mga less [no audio]
Ah and good secretary, sinabi nyo nga yung mga strategies or parts of strategies para maachieve yung total electrification, mayroon po bang targeting year on year or just a general target of 100 percent by 2028
Lotilla: We can provide you the details of the year on year targets but we are also trying to improve the backbone connections and distribution lines the problem that we face is that because of the natural calamities what happens is that for example I think it's Homonhon, where national power corporation put up a renewable energy potable system but it only take one typhoon to wipe up the whole thing so we're looking at therefore not simply the challenge not simply of expanding, but it's actually restoring the previous ones that got destroyed.
We're looking at new technologies and it's good that private sector has come up with them so for potable retractable, portable take systems have been on a small scale - they use container vans which then could be used a shelters by retracting the pvs into the container vans during a super typhoon or a typhoon. So little things like those can help the longevity of existing infrastructure we have had so that's also among the other steps that we are taking because for example in some isolated islands even though generation sets are there, they cannot because of the age 40 year old distribution lines, they cannot effectively deliver to the households so these are challenges not only in generally on the generation side but also in the transmission and distribution sides. In other words, we have weekly links in every subsector of the whole chain, and we would have to do everything in order to improve each of these subsectors.
SRH: Salamat Secretary also for pointing out that problem of weak linkages, parang napoproject nyo na yung mga later questions ko kaugnay ng EPIRA, linkages, or for that matter, installing breaks where they should be, where the law itself contemplated.
So, bukod sa sitio electrification Bukod sa Sitio Electrification Program (SEP) na pinopondohan natin mula sa GAA every year, may iba pa bang programa para makamit ang 100% electrification? The Secretary has already mentioned some, kabilang ba dito ang paggamit ng renewable energy (RE) katulad ng PV mainstreaming o mga solar power system. Napatunayan na ba sa karanasan na effective ito?
Usec. Guevara: Madam Chair doon sa mga lugar masyadong malayo sa mga distribution lines hindi na praktikal na magextend ng line sa ginagawa po doon, mayroon tayong mga solar home systems. May iba't ibang klaseng programa, mayroon yung sa PV mainstreaming, mayroon yung sa ACEP and so on, so kung ano yung tama sa lugar, yun ang magiging last mile po natin para maabot po natin yung mga hindi pa connected sa grid, at hindi po natin ipipilit na iconnect pagka sobrang mahal pong iconnect, stand alone lang po na solar system. Under po yan sa total electification program natin.
SRH: Salamat po, maya't maya po nababalitaan po namin ang mga problema ng RE generators na makapaglink up sa grid and since malaking bahagi ng aking arkipelago hindi lang yung visayas island region ay mga isla so exciting din magisip ng mga paraan na maipasok nga sa suplay yung mga RE energy na distributed nyan and my mind always go back also in terms of questions like these sa mga electric cooperatives din. So kung effective ito pong mga pinaguusapan nating mga RE use maaari rin ba itong magamit sa iba pang sektor tulad sa socialized housing projects kung saan mayroon akong kaparehong panukala under under SBN 378 dahil hindi lang high cost ng kuryente ang problema ng mga mahihirap kundi maging ang access sa kuryente sa mga relocation areas?
The bill proposes that in informal settler relocation areas makapag install ang gobyerno ng halimbawa solar panels mga bubong nila at sa mga bubong ng iba pang mga public facilities, government facilities, covered courts man yan para i-meet ang energy needs ng mga komunidad
Usec. Guevara: Pwede po kasing maging part sila ng micro grids natin. Kasi yun po yung magandang solusyon doon sa dinisecribe nyo na sitwasyon at pwede nating isama sila sa succeeding auctiongs ng MGS.
SRH: Salamat po.
Lotilla: Senator, I just want to add the housing department is also looking into their projects, the mass housing projects they are going to include aspects on like rooftop solar and other renewables in order to bring down the cost of energy for those who are going to be relocated to these areas. yes it's also along those lines that you indicated.
SRH: Salamat sa pagbanggit nyan, Secretary, actually I've heard directly from the DHSUD since I also sponsor their budget they've been increasing the number of MOAs MOUs in other department and hopefully they can look forward to something similar with the DOE along these lines... pero kung kasama itong strategy hindi ba't kailangang maglaan ng pondo para dito? At oo, magkano dapat?
Usec. Guevara: Ma'am para po doon sa electrification under sa NEA, ang kailangan po nilang total ay 69B until 2028, graduated po ang number ng households na ieenergize nila as we go through the years, so for example, kung susundin ang plano sana 12 billion yung budget nila for that program next year sa 2024 tapos umaakyat po yan hanggang 14B sa 2025.
SRH: So at least sa budget may year on year tayo hopefully kapag nasubmit na sa Komite yung year on year targeting papuntang 100 percent electrification makita po ano yung targets ano yung tinatarget year on year para pagkagastusan nitong on average 12B a year. Although Ma'am ano yung partikular na budget para doon sa pagRE energized noong mga hindi pa electrified na mga households?
Usec. Guevara: Ma'am yun pong sa pagRE electrified kahit po yung sa programa ng electric cooperatives natin, kasama po yung consideration, pag sobrang layo po at hindi na pwedeng tayuan ng distribution line, household na po yung lalagyan nila ng electrification.
SRH: Salamat Ma'am. Pwede kong tanungin sa NEA. For NEA, based on your mandate under PD 269, NEA you are in charge of the country's total electrification through the establishment of electric cooperatives. So after 54 years since 1969, ilan na ang total household connections ng electric cooperatives ngayon?
NEA Administrator Almeda: Based on the 2020 census, there are about 16 million to 15,700,211 connections, Ma'am.
SRH: Ito po ba yung household connections?
Almeda: Opo.
SRH: To achieve this total electrification ng bansa na in charge ang administration, you energize, together with the electric cooperatives, even the unviable areas that private distribution utilities like Meralco don't dare go.
Almeda: Per the pronouncement of the President last SONA, we immediately formulated a catch up plan for the remaining five years. And as discussed by Usec. Guevarra earlier, we are, we will do our action plan on a three-prong strategy comprising of the SItio Electrification Program, the Barangay Line Enhancement Program for grid extension, and the PV mainstreaming as an off-grid solution, all those areas which are not reached and are not viable.
Now during my presentation but I will take this opportunity already, we have prepared a fiver year program wherein our target for 2024 is to reach 91 percent electrification, basing it on the latest PSA survey of only 89 percent which can be achieved in 2023. So by 2024, we are targeting 91 percent, converted into households that would be an additional 17, 050 households, by 2025, we are targeting 94 percent which is additional 17, 250 household again.
By 2026, we are targeting 96 percent which will cover another 17, 452 households. And if our plan will work right, we can achieve 100 percent by 2027. And this will entail a total budget requirement of P69.79 billion, of which P12.59 billion will be needed by 2024, following this action plan.
Out of the P12 billion for next year, we are allocating P5.25 billion for the PV mainstreaming. And that will cover 180, 925 households. We adapted the PV mainstreaming because as early as 2019, there is already an existing proof of concept in the areas of Sultan Kudarat and Davao del Sur, a total of 40,000 households already are using the Solar Home System of 50 watt capacity, that can energize 5 bulbs, one TV and one cellphone charger on a 24 hour basis. It is a solar home system with a battery.
SRH: Maraming salamat. I really appreciate the detailed and concrete details, will that actually constitute the proof of concept? It is good to know na meron kayong piloting na dinedevelop or best practices model na dinedevelop, then you do treat them as proof as concept and ginagamit niyo na basehan nung proposed budget ninyo dito sa Kongreso.
I appreciate na meron kayong year on year target in terms of the numbers of households to be added sa electrified, and I appreciate na meron kayong budgeting per year. I noticed na PV mainstreaming is in fact included in your proposed three pronged strategy. Ambitious ang ano, parang ambitious yung target ng number of households just for next year na idadagdag, at a 189, 000 households.
If in fact you will reach your target bisperas pa lang ng katapusan ng administration, so pagdating po ba ng 2028, magdedeklara na ang NEA ng "Mission Accomplished?" As in nakamit na yung mission ng total electrification? Alameda: We accelerated until 2027, so if there will be any other household that were not covered during our forecasting, makakahabol po kami. So our target really is, from the pronouncement of the President, by 2028, we can confidently say na it will be 100 percent electrified and nobody will be left behind.
SRH: Thank you Administrator. So mission accomplished by 2027 or 2028?
Alameda: Yes, ma'am.
SRH: Salamat. It is always good to have a one year palugit to complete the mission or meet the targets. Pero tama rin po ba na karamihan sa ating electric cooperatives, 70 percent of them in fact, ay nagging viable na rin, kaya nga nagaagawan yung mga big private companies na igrab or kunin yung kanilang mga franchises ngayon?
Alameda: I think it is more than 70 percent which are viable. However, Ma'am if I may put it, there will be a clamor for reforms of improved services of the electric cooperatives and NEA for that matter will have to respect that. But NEA will not be at the forefront but rather would give the decision to the member-consumers, if they indeed elect or decide to allow private participation.
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SRH: Thank you Mr. Chair. I am glad na napagusapan din natin ang Microgrid Law, kasi nga I think it is related sa nabanggit kanina na kaya nafrufrustrate yung mga dagdag sanang private sector stakeholders, dahil yung magegenerate nilang RE, mahihirapan pa silang iupload sa grid. And my mind always turns to the possible roles electric cooperatives play even in problem solving, kaya naisip ko, through the Microgrid Law, kung these different stakeholders can be brought together in one solution package. As an aside lang, I am glad na napagusapan natin yan.
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SRH: Tapusin ko lang ang tanong ko sa NEA, Kung mission accomplished na ang NEA once 100% electrification is reached, ibig bang sabihin nito ay mawawala na rin ang NEA? O may iba pa kayong gustong gawin beyond total electrification?
Almeda: It never occurred to us na mawawala ang NEA if 100 percent electrification is achieved because aside from the responsibility of total electrification we are the regulating agencies of 121 electric cooperative functioning right now.
A lot of reforms I believe as present administrator, a lot of reforms should be entertained or looked at in the conduct of business or maybe specifically 10531 on how electric coops better service its member-consumer-owners. And actually I submitted my position paper to the Department of Energy of what I feel are the provisions that need to be amended to better cope up with the present times and I believe there's so much more of the responsibility of NEA than total electrification now.
SRH: I would agree po. I forgot to mention po pala kanina I was glad to hear from NEA kani-kanina lang well napansin ko na nasabi nila na there's a clamor for reforms for improved services and I hope maidudugtong ko yun sa unang nasabi ni Sec Lotilla na tinitingnan paano yung mga better performing coops as a priority other than non coops stakeholders can make up for the shortfall kung mayroon sa less performing coops at masaya akong marinig kay Administrator na NEA will not be at the forefront of in effect replacing coops on that role, pero iniwan yung desisyon nga sa MCOs as proper.
So kaugnay po nyan, Is privatization or private take-over of electric cooperatives part of NEA's mandate?
Almeda: Ma'am as provided for RA 10531, private sector participation is enumerated on different modes - joint venture agreement, investment contracts and concession ma'am.
SRH: Salamat and gusto kong itest natin yun not just on a broad policy level in a particular cases but before that, May nakapagsabi sa akin that during the 44th Annual Convention of PHILRECA held last August, the NEA Administrator declared before the assembly that no electric cooperative will be privatized under his watch. Totoo ba ito, Administrator?
Almeda: I think it came from the speech of Cong. Presley De Jesus but not me.
SRH: Nalulungkot ako doon I always expect kind of speech from my counterpart si Rep Presley pero kung mas masaya ako na si administrator ang nagsabi niyan para itest po natin yung ano ba yung policy terrain dito sa responding clamor for reforms but NEA not being on the forefront ng kumbaga pagkawala ng papel and indeed leaving the decision on MCOs, unfortunately, very recently, I was informed that the Central Negros Electric Cooperative (CENECO) was privatized through a Joint Venture Agreement (JVA) and very active daw ang naging role dito ng NEA?
Almeda:Mr Chair Ma'am I don't know where that statement came from but if I may correct the situation right now, CENECO is not yet privatized through a joint venture agreement, there are still steps to be taken to qualify for the JVA to be approved what happened recently was a plebiscite or I would say referendum that was imposed by NEA to the Boarfd of CENECo before entertaining the idea o JVA they should procure 50 percent plus one vote of all bonafide member-consumer-owners as provide for by PD 269 since there will be disposition of assets that would take place.
SRH: Tama po yun, salamat Administrator kaya ko shinare yung information na iyon kasi according to our sources, NEA approved the Board's controversial guidelines such as an unlimited number of proxy voters allowed, an extension of voting days that span two months for the conduct of its referendum for the JVA. First time daw itong nangyari in electric cooperatives' history in the Philippines. So I'm compelled to ask kung bakit Mayroon bang special sa CENECO kung bakit mukhang naging special din sa NEA ang handling nito sa JVA issue?
Almeda: Mr Chair Ma'am I cannot say that there's something special here what happened here is what we are trying to implement what PD 269 provides. It just so happen that the JVA started in the level of board of directors of CENECO and when it was submitted the board resolution to NEA, well, NEA have to act on it but have to prescribe rules as provided for by PD 269 since it's obvious from the face of it that there will be disposition of assets.
NEA was on the allegation that, or maybe in the incident of extension of two months, Ma'am it was not an extension, it was the board that came up with the rules and vetted by NEA that should be in compliance with PD 269 and when during the first, if I may recall, during the first weekend of the referendum there was a massive disenfranchisement because the voters' list would contain dead people and would contain and other member-consumers were not on the list.
In short, hindi napreserve ang sanctity ng voters list, and it was sounded off by chief local executives within the franchise areas. That's why NEA act upon the request so NEA immediately had to stop the referendum, we sent our IT personnel and instiutiuonal managers tp check on the situation and it took us one month to purge the list, validated it, and ordered the sanction of the referendum
SRH: Sabi nyo nga po the particular guideline nung extension or mas mahabang period of two months was come up with by the board bilang isa sa mga rules ng referendum and NEA merely vetted. KAsi ang NEA naman ang may oversight sa board ng electric coops. Did NEA find na obedient to PD 269 yung pagprovide ng 2-month voting period para sa referendum?
Almeda: Yes Ma'am, it's within the purview of the rules of PD 269 as amended by RA 10531.
SRH: At gaya nga nga nabanggit about chief local executives, may nakarating kasi sa atin na impormasyon na nang mag-request ang ilang mayor ng Negros sa pamamagitan ng isang sulat kay Administrator Almeda para ipatigil ang botohan dahil sa mababang turn out at baka hindi makuha ang requirement na 50+1 requirement on referendum under PD269. Agad itong ipinatigil ng NEA.
After ipatigil, pina-extend ang referendum ng mas marami pang araw na wala sa itinakda ng orihinal na guidelines ng Board. Ginawa ring unlimited ang proxy voting mula sa dating 100 lang. May I therefore ask this personal question, may kilala ka bang Donato Almeda? Kaano-ano mo siya ito at saan siya connected na mga kompanya?
Almeda: Yes ma'am. Mr Chair. Donato Almeda is my elder brother and he is the vice chairman of Solaire Hotel Resorts and Casino and also I think one of the top management of Manila Water and I would also declare that he was a former director minority director of MORE power but he divested on the date of November 14, 3 days before my appointment as National Electrification Administration in anticipation that there will be a conflict of interest on my part.
SRH: Salamat dahil based on available information, Donato Almeda is current or former, and Administrator has said, former Board member of MORE Power. He's also officer of several companies related with MORE Power. and naanticipate ng ani administrator kung may nakikita ba kayong conflict of interest dito na maaring isipin ng mga tao na dahilan kung bakit nangyari ang maraming kontrobersiya sa JVA referendum sa Negros?
The good admin said that Mr Donato divested 3 days before his appointment... Divested from MORE power tama po ba? Is he still officer of companies related to MORE Power?
Almeda: I don't think so. He is in the entertainment and water utility business.
SRH: Lastly, we were informed that the YES vote finally prevailed in favor of the controversial JVA. Sa totoo lang po, nangangamba ngayon ang unyon ng mga manggagawa sa CENECO na maapektuhan ang kanilang job security dito sa napipintong takeover ng NEPC dahil nakalagay sa JVA na may nakalaang pondo para sa kanilang separation sa CENECO.Totoo po ba ito?
Almeda: Honestly ma'am I am not yet aware of the details of the joint venture agreement actually the process prescribed is that the JV proposal should first procure 50 percent + 1 majority vote before it reaches NEA now it was proclaimed by the over-all plebiscite committee that indeed 50+1 was achieved, that's the only time I will be looking into the details of the JVA that's why on my earlier statement, the JV process is not yet over.
If I may respond to the request of the local chief executives to extend or to stop or purge the list, ma'am we did that not just to give chance to local chief executives to gather 50+1 but we are preventing a massive disenfranchisement. We wanted all majority if not all of the member-consumer-owners to participate in this exercise and it was even explicitly included in our directive in the board of directors.
SRH: Understood. Just to close on this topic, since sai nga ni administrator hindi nyo pa po nakikita yung detalye ng JVA, at least may I bring to your urgent concern ng mga manggagawa sa unyon, ang tanong po nila, mawawalan ba ng trabaho o tenure ang mga empleyado ng CENECO dahil sa JVA? Ano ang assurance na maibibigay ng NEA sa komiteng ito na walang mababago sa kanilang status of employment bilang regular na empleyado at mananatili ang unyon?
Almeda: The labor situation is not within the mandate of NEA but what I can assure this committee is that NEA will protect on its utmost capability and authority the interest of the member-consumer-owners but with regards to the status of present employees of CENECO, I don't think it is within the mandate of NEA to further touch on that situation because it's all but contractual now.
SRH: I'm hoping the administrator eventually looking at the details of JVA ay pwedeng makadiskubre ng slightly larger mandate ng NEA lalo na po yung mga manggagawa, miyembro ng unyon ay mga MCOs din and I think these kinds of concern and seeming policy gap ang nagiisang problemaTIC precisely ng mga private takeover ng electric cooperatives.
I hope pag nareach ng NEA ang 100 percent electrification by 2027, kung may mga best practices magawa siya in relation to electric coops and especially in relation to electric coops isubject of privatization gamabat mas kaunti yan, in those cases na magkaroon ng privatization tulad sa CENECO, that in last year, the 2028, mainstrotulize ng NEA yung klaro at malakas na proteksyon para sa mga manggagawa para sa mga miyembro ng unyon.
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