The National Electrification Administration (NEA) expressed confidence that the full implementation of an executive order (EO), which hopes to curb red tape on crucial energy projects, will encourage more electric cooperatives (ECs) to venture into power generation.
Administrator Edgardo Masongsong made the statement Tuesday after Energy Secretary Alfonso Cusi announced that the implementing rules and regulations (IRR) on EO 30 has been released.
Signed by President Rodrigo Duterte last year, EO 30 was meant to streamline all regulatory procedures affecting Energy Projects of National Significance (EPNS) through the creation of an Energy Investment Coordinating Council (EICC).
With the IRR in place, Cusi said stakeholders can now expect prompt delivery of basic energy services. Masongsong welcomed this development, especially since a great deal of non-profit distribution utilities have many new projects at hand that are only waiting to be approved.
“With the 121 electric cooperatives having several embedded projects, this policy on the fast-tracking of energy-related projects would not only improve the lives of people in the rural areas, but would also introduce potential livelihood programs for them,” the NEA chief said.
“Hopefully, the EO 30 through the EICC would likewise be supportive of electric cooperatives that wanted to construct and operate their own embedded generation facilities. I believe this could serve as a good avenue to reduce the costs of electricity in the country,” he added.
Masongsong further mentioned that the early approval and resolution of energy-related projects will help cut “predevelopment costs” on the part of generation companies, which, in turn, scales down the rates of power supply to be contracted.
In a statement released to the media by the Department of Energy (DOE), Cusi said the IRR marks the end of slow-moving energy projects that are impeding the economic development of our nation because of rigid regulatory processes.
The DOE issued the official guidelines on the implemention of EO 30 last April 25 through Department Circular No. DC2018-04-0013. It was published in newspapers of general circulation on May 4, 2018 and is already taking effect.
Under the IRR, the processing of permits and licenses shall be done within a maximum period of 30 days for projects declared as EPNS. This starts from the date of submission of the complete documentary requirements to the relevant government agencies.
