DOF crafts IRR to boost NEA

MANILA, Philippines - The Department of Energy (DOE) is crafting the implementing rules and regulations (IRR) of a new law strengthening the National Electrification Administration (NEA).

The new law essentially gives NEA more teeth over electric cooperatives, some of which are financially bleeding and heavily indebted because of mismanagement and unpaid services.

For instance, the law strengthened NEA’s authorized capital stock from P1 billion to P25 billion.

In the draft circular issued by the DOE, NEA may now issue orders, rules and regulations and conduct investigations on all matters affecting electric cooperatives.

NEA is now also allowed to appoint independent board of directors in the electric cooperative.

Furthermore, the Energy department said in the draft circular that no injunction or temporary restraining order (TRO) shall be issued against the implementation of any order, ruling or decision of the NEA, except by the Court of Appeals.

The new law also provides for incentives for electric cooperatives that comply with the financial and operational standards set by the NEA.

According to the draft circular,  NEA may prioritize the grant of incentives in favor of electric cooperatives that are managed effectively and efficiently and comply consistently with its mandates and directives.

It also allowed NEA to act as guarantor to electric cooperatives in their transactions to various parties including their power supply contracts.

Furthermore, according to the new law, NEA may now grant loans to electric cooperatives for the construction or operation of subtransmission and distribution facilities necessary to supply power to their service areas.