NEA supports proposed P9 billion budget for 2021

MANILA, Philippines — The National Electrification Administration (NEA) is supporting a resolution filed by the power bloc of the House of Representatives to restore the agency’s P9-billion proposed budget for fiscal year 2021.

NEA Administrator Edgardo Masongsong said the additional budget is important to realize the goal of total electrification by 2022.
“NEA will appreciate a favorable action from Congress as initiated by the power bloc for the restoration of the original request for subsidy, if only to fast-track the national government’s Total Electrification Program,” Masongsong said.

NEA initially proposed a P10.8 billion budget for next year’s projects such as Sitio Electrification Program (SEP) Phase II, Barangay Line Enhancement Program, Strategized Sitio Electrification for Off-Grid Areas, among others.

However, the Department of Budget and Management (DBM) recommended only a P1.8 billion subsidy as indicated in the 2021 National Expenditure Program (NEP).

Of the P1.8 billion, P1.6 billion will be allocated for the SEP and P200 million for the Electric Cooperatives Emergency and Resiliency Fund (ECERF).

Masongsong said earlier that the DBM-recommended P1.6-billion subsidy for SEP will only energize 1,085 sitios.

He emphasized that some 12,000 sitios or 1.7 million households across the country remain without access to electricity. He added that around P15 billion would be needed for total electrification by 2022.

Power bloc Reps. Presley de Jesus (PHILRECA), Sergio Dagooc (APEC), Godofredo Guya (RECOBODA) and Adriano Ebcas (Ako Padayon Pilipino) said restoring the proposed budget would allow NEA, to energize an additional 3,915 sitios and enhance the grid connections of 74 barangays including seven barangays under the National Task Force to End Local Communist Armed Conflict, and 13 submarine cabling projects.

The lawmakers said the proposed budget will also augment the recommended P200-million budget for ECERF, a financial assistance to electric cooperatives for the restoration or rehabilitation of damaged infrastructure after a fortuitous event or force majeure.

“To be able to fully and effectively implement the directive of President Duterte as well as to finally provide access to electricity for all Filipinos, the NEA should be given the full amount it has proposed,” the power bloc said in their House resolution.

As of June 30, 2020, NEA and the 121 electric cooperatives (ECs) have energized 123,726 sitios or 84 percent of the targeted 147,989 sitios.

At present, the rural electrification program contributed to the provision of electricity to 13.85 million consumer connections nationwide.