Communities in Ifugao, Isabela, and Nueva Vizcaya hosting renewable energy provider SN Aboitiz Power-Magat, Inc. (SNAP-Magat) received close to PhP4 million of Electrification Fund (EF) to support their fight against COVID-19.
EF worth PhP418,834.70 for the remaining host local government units in the said provinces also await endorsement from the Department of Energy (DOE). Once approved for remittance, this would bring the total EF for SNAP-Magat host communities to PhP4.4M excluding the regional share.
The EF is part of the ER 1-94 program under the Department of Energy (DOE) providing host communities with a one-centavo share for every kilowatt-hour (PhP0.01/kWh) of the total electricity sales of a generating company. Other than EF, the Development and Livelihood fund (DLF) and the Reforestation, Watershed Management, Health and Environment Enhancement Fund (RWMHEEF) make up the total ER 1-94 fund.
In 2018, DOE amended ER 1-94 so that power generation companies can directly download the fund to their host communities. It also expanded the categories of beneficiaries to include host regions and indigenous peoples groups, as well as designated distribution utilities in charge of the EF component for host beneficiaries. Last year, SNAP-Magat signed memorandums of agreement with its host communities to implement the amended ER 1-94.
With the public health emergency caused by COVID-19, DOE issued Department Circular (DC) No. 2020-04-00080 on April 6, 2020 to allow the use of ER1-94 for COVID-19 response projects and the downloading of the EF to host communities as back-up for DLF and RWMHEEF. Projects include the facilitation of mass testing by providing and constructing facilities, procurement of medical testing kits, emergency subsidy (non-food) or augmentation to existing subsidy programs, access to essential goods such as food and medicine through mobile markets or feeding programs, and protective personal equipment (PPEs) for frontliners.
SNAP-Magat remitted around PhP7.8 million worth of DLF and RWMHEEF in late 2019 and earlier this year. These accumulated from December 26, 2017 to December 25, 2019 while amendments to the ER 1-94 guidelines were being developed. In April, SNAP-Magat also provided food and PPE aid to its Magat host communities worth around PhP4.8 million from the company’s voluntary Corporate Social Responsibility (CSR) fund.
“We thank the DOE for exploring ways to support the nation’s fight against COVID-19. The newly signed DC backs our commitment to help our host communities in their battle against COVID-19,” SNAP President and CEO Joseph S. Yu said.
“SNAP Group is committed to powering positive change in our host communities. Social responsibility has always been at the core of our operations, and COVID-19 has in no way dented that commitment— it only strengthened it,” he added.
SNAP-Magat is a joint venture between SN Power of Norway and AboitizPower. It owns and operates the 360- to 388-megawatt Magat hydro on the border of Isabela and Ifugao; and the 8.5-MW Maris hydro in Isabela.