NEA tells electric cooperatives to conserve on fuel amid oil price spikes
MANILA, Philippines — The National Electrification Administration (NEA) directed electric cooperatives (ECs) to save on fuel consumption through cost cutting measures as the country continues to bear the impacts of the oil price spikes.
The prudent use of funds ensures the financial stability of a power distributor, NEA said in an advisory dated June 23 and signed by Administrator Emmanuel Juaneza.
"The rising fuel costs can put major strain on the financial operations of ECs. Thus, ECs are enjoined to re-evaluate their practices on cutting operating expenses, particularly fuel consumption," the agency said.
It added that policy on the use of vehicles should also be reviewed.
If fuel expenses exceed the allocated budget, the EC must get approval for additional funds and/or a budgetary re-alignment from NEA.
This comes days after local oil companies announced another round of price increases for their petroleum products. Consumers and motorists have to shell out 50 centavos more for a liter of gas; an extra P1.65 per liter of diesel and an additional 10 centavos for a liter of kerosene, oil price advisories showed.
Pump prices rose for the fourth consecutive time, although they have been consistently increasing since the start of the year due to global developments in the world market, which the Philippines is heavily reliant on for its oil requirements. Supply in the market was partly worsened by the war waged by large oil producer Russia against Ukraine.
NEA, which is in charge of the total electrification of the Philippines, is working with more than 120 ECs across the country. — Angelica Y. Yang
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