AboitizPower remits P508M to host communities

Aboitiz Power has announced that it has already remitted some P508 million to its host communities pursuant to ER 1-94 which provides for the latter’s share of P0.01 per kilowatt-hour (kWh) of the electricity sales of generation facilities and/or energy source development projects. The ER 1-94 funds may be used for the LGUs’ COVID-19 response. (Photo courtesy of AboitizPower)

Aboitiz Power Corporation or AboitizPower has remitted a total of P508.2 million shares to its host communities which the latter may use in their COVID-19 response programs.

In an e-mailed statement, AboitizPower said it has downloaded P148.2 million of the shares of 174 host communities nationwide with P34 million more awaiting turnover and  P359.97 million from various AboitizPower-led generation companies, accumulated as of 2019, which the Department of Energy has already turned over to the host beneficiaries.

The remittance of shares to host communities is pursuant to DOE’s Energy Regulation 1-94 (ER 1-94) which mandates that host communities will get one-centavo per kilowatt-hour (P0.01/kWh) of the electricity sales of generation facilities and/or energy resource development projects.

ER 1.94 is the implementing rules and regulations for Section 5 of the Department of Energy Act of 1992 and the Electric Power Industry Reform Act of 2001 (EPIRA) which mandates for the creation of mechanisms to provide benefits for host communities of energy development projects.

The remittance of the shares, the company said, marks its  “commitment to supporting its stakeholders and helping the country recover from the impact of the coronavirus disease (COVID-19.)”

The shares, under ER  1-94, are to be spent for electrification of the communities, development and livelihood programs, reforestation, watershed management, health, and environmental enhancement initiatives.

Quoting Energy Secretary Alfonso Cusi, Aboitiz Power said the DOE has come up with necessary circulars to alow the LGUs to use their ER 1-94 funds to augment their COVID-19 response funds.

 “We are glad that these funds are now with our communities as these will ensure they have the resources to fund crucial projects in their areas. Recent developments have also allowed them to use these remittances specifically to bolster their campaign against COVID-19,” AboitizPower President and CEO Emmanuel Rubio said.

“More than the fact that this is the obligation of power generation companies to its host communities, this is a manifestation of our commitment to supporting our partners in any way we can, especially during these challenging times,” Rubio added.

The latest remittances to host communities among the Aboitiz Power subsidiaries were made by Therma South, Inc. (TSI) and Hedcor which handed in around P26 million to Davao City alone. TSI and the DOE also remitted about P36 million of ER 1-94 funds to other parts of the Davao region.