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Meralco, private power distributors not part of energy subsidy program for poor —NEA


The National Electrification Administration (NEA) on Thursday clarified that the Manila Electric Co. (Meralco) and other private distribution utilities are not part of the program which will subsidize the electricity consumption of “lifeline” customers.

This after Cabinet Secretary Karlo Nograles announced Wednesday that some three million poor customers with an electricity consumption of less than 50 kilowatt hours a month will no longer be charged under the Pantawid Liwanag initiative of Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA).

To set the record straight, NEA said the subsidy program will be implemented by electric cooperatives, “which are non-stock and non-profit power distribution utilities.”

“Meralco and other privately owned power distribution companies are not involved in this...,” it said.

The NEA noted that Pantawid Liwanag program is a corporate social responsibility program of the rural electrification sector led by the PHILRECA in cooperation with the National Association of General Managers of Electric Cooperatives (NAGMEC).

It seeks to aid the member-consumer-owners of electric cooperatives (ECs) who are categorized as “lifeline consumers,” it said.

“These are people who live below the poverty line and used electricity not exceeding 50 kWh based on their power bills during the enhanced community quarantine period,” it added.

The definition, however, of “lifeline consumers” vary as determined by electric cooperatives’ respective managements, within the parameters set by state regulatory agencies.

The NEA said that the funding for the implementation of program will depend on the financial capability of electric cooperatives.

“There are electric cooperatives that have realigned budgets from some of their institutional activities, which were cancelled due to the extended ECQ to support this cause,” it said.

“Funds will not be drawn from their capital expenditures or operational expenses and it will not affect their financial obligations to their power suppliers and transmission providers,” it added.

The PHILRECA also gave the assurance that electric cooperatives are finding ways to finance the Pantawid Liwanag program, “as they are motivated by their strong desire to help the impoverished communities that they serve and have always counted on them for support in times of crises.”

“This philanthropic initiative was made in solidarity with the national government’s efforts to assist vast number of our countrymen in the provinces whose livelihoods and primary sources of income were adversely impacted by the ongoing public health emergency,” the NEA said.—AOL, GMA News