National Electrification Administration

Summary

The National Electrification Administration (NEA; Filipino: Pambansang Pangasiwaan ng Elektripikasyon) is a government-owned and controlled corporation (GOCC) attached to the Department of Energy of the Philippines tasked in the full implementation of the rural electrification program (REP) and reinforce the technical capability and financial viability of the 121 rural electric cooperatives (ECs).

National Electrification Administration
Pambansang Pangasiwaan ng Elektripikasyon
National Electrification Administration (NEA).svg
Agency overview
FormedJuly 28, 1969; 52 years ago (1969-07-28)
Headquarters57 NIA Road, National Government Center, Diliman, Quezon City 1100, Metro Manila, Philippines
Agency executive
  • Emmanuel P. Juaneza, Administrator
Parent departmentDepartment of Energy
Websitewww.nea.gov.ph

Formerly located at the D&E and CDC Buildings, 1050 Quezon Avenue, Paligsahan, their office is now inside Triangle Park at the National Government Center in Quezon City.

HistoryEdit

General Pedro Gallarza Diaz Dumol is considered to be the "Father of Rural Electrification (in the Philippines)" when approximately 2,700,000 connections had been made from zero when he moved in as chief of the National Electrification Administration until his retirement in 1986.[1]

One of the thrusts of the previous NEA leadership is to intensify the implementation of the Sitio Electrification Program (SEP) Phase 2 and the Barangay Line Enhancement Program (BLEP).[2]

CreationEdit

The Electrification Administration was initially created and established through Republic Act 2717 without Executive approval on June 19, 1960 in order to promote and accelerate the agricultural and industrial development of the Philippines. The agency was headed by an Administrator (appointed by the President with the consent of the COA or Commission of Appointments) for a term of ten (10) years, and two (2) Deputy Administrators.[3]

The agency maintains a revolving fund consisting of 5 million appropriated annually starting fiscal year 1961 until 1965, other fund or assets received from or out of Japanese reparations and loans obtained under the same.[4] Out of this fund, the Administration was authorized and empowered to make loans to local governments, electric consumers cooperative associations and Filipino electric franchise holders for the purpose of financing the construction and operation of generating plants, electric transmission and distribution lines or systems for the furnishing of electric energy, particularly in remote areas.

Reorganization of Electrification Administration and Electric Cooperatives (ECs)Edit

Nine (9) years after the creation of Electrification Administration, a National or State policy of total electrification on an area coverage service basis was declared through Republic Act 6038 approved on July 28, 1969 and signed by then President Ferdinand Marcos, including Presidential Decree No. 40 and Letter of Instruction No. 38, dated November 7, 1972 effectively repealing Republic Act 2717.[5]

The Board of Administrators were introduced in the agency, which shall be composed of a Chairman and four (4) members, one of whom shall be the Administrator as Ex-officio Member of the Board and Chief Executive Officer (CEO) of NEA. General Pedro Gallarza Diaz Dumol became the Administrator after being offered the post by then Executive Secretary Alejandro Melchor.

Chapter III of this law also called for the organization, promotion and development of cooperative non-stock, non-profit membership corporations and electric cooperative corporations (ECs) formed or registered under Republic Act 2023 or the Non-Agricultural Co-operative Act for the distribution of power in the countryside.

Additional appropriations to the revolving fund consisted of 20 million (but not limited as to the amount Congress may further appropriate) annually starting fiscal year 1970 until 1979, proceeds to the share of the National Government in all franchise taxes paid by electric service entities, and continuing funds or physical assets received from or out of Japanese reparations.

NEA Decree and Franchising PowersEdit

On August 6, 1973, the National Electrification Administration through Presidential Decree No. 269 was converted into a corporation, wholly owned and controlled by the Philippine government under the supervision of the Office of the President. Possessed with borrowing authority and corporate powers, the authorized capital stock of NEA was pegged at 1 billion divided into ten (10) million shares having a par value of one hundred (100) pesos each. Six (6) years later, Presidential Decree No. 1645 increased the authorized capital stock by 4 billion with an additional forty (40) million shares.[6]

Sections 42 and 43, Chapter IV of the NEA decree effectively repealed the power to grant "electric system" franchises from the Municipal, City and Provincial Governments in favor of the NEA. As such, the corporation will also receive from Electric Cooperatives (ECs) all articles of incorporation, amendments, consolidation, merger, conversion and dissolution, and all certificates of changes in the location of principal offices and of elections to dissolve.

The composition of the Board of Administrators (BOA) was retained, composed of a Chairman and four (4) members appointed by the President, one of whom shall be the Administrator as Ex-officio Member of the Board with a term of six (6) years. The BOA shall administer, acting as a Commission, all the provisions found on Chapter IV of the NEA decree.

Electric Power Industry Reform Act of 2001 (EPIRA)Edit

Republic Act 9136 or the “Electric Power Industry Reform Act of 2001” (EPIRA) effectively condoned all outstanding financial obligations of Electric Cooperatives (ECs) to NEA and other government agencies (incurred for the purpose of financing the Rural Electrification program [REP]) and was assumed by the Power Sector Assets and Liabilities Management Corporation (PSALM).[7]

Then President Gloria Macapagal Arroyo also issued Executive Order 119 ordering the reorganization of NEA to bring down the power rates considerably. The reorganization was approved and implemented by the Department of Energy (DOE) and Department of Budget and Management (DBM).

Electric Cooperatives (ECs) between NEA and CDAEdit

The enactment of Republic Act 6939 creating the Cooperative Development Authority (CDA) as amended by Republic Act 9520 or the Philippine Cooperative Code of 2008 may have allowed Electric Cooperatives (ECs) to qualify for certain tax exemptions or pay lower taxes[8] but also raised questions on NEA's jurisdiction over ECs.

Arguments raised as follows: 1) The ECs don't have autonomy and independence and democratic control of member-consumers because NEA appoints the General Manager who may ignore policy decisions of the General Assembly-elected members of the Board of Directors.[9] 2) The transfer of all outstanding obligations of ECs from NEA to PSALM through the EPIRA law extinguished the basis of the regulatory and supervisory powers of NEA, i.e. loans previously extended.[10]

National Electrification Administration Reform Act of 2013 and the Electric Cooperatives (ECs)Edit

When Republic Act 10531 was enacted on February 4, 2013, it declared a threefold National or State policy: First, to empower and strengthen the NEA; Second, to empower and enable Electric Cooperatives (ECs) to cope with the changes brought about by the EPIRA law; and Third, to promote the sustainable development in the rural areas through rural electrification.[10]

This law may as well be considered as curative statute that is intended to address the impact of a restructured electric power industry under the EPIRA on Electric Cooperatives (ECs), which has not been fully addressed by the Philippine Cooperative Code of 2008.

From Administration to AuthorityEdit

In some June 2017 newspaper articles, then Administrator Masongsong was quoted as saying there's a move to amend the NEA Charter to allow it to regulate Electric Cooperatives (ECs) aside from monitoring and supervision, to be unofficially named National Electrification Authority. The policy change seeks to allow NEA to propose policies and legislation to improve the power industry and expand the NEA's mandate to cover other electricity distribution utilities like private investors owned utilities and private distribution utilities.[11][12]

ElectrificationEdit

Electrification, one of the several form of energization, refers to the ratio of entities with active electric connection within a category (e.g. cities, barangays, sitios, puroks, households, etc) out of the total number of entities within that category. For example, all of the 1,475 cities have electricity connection to at least one house or business, thus each city is electrified, i.e. 100% electrification ratio at city level. However, not all barangays with in the city are connected to electricity, if we calculate the electrification ratio at barangay level it will be less than 100%. In those brangays that have electric connection, not all houses are connected to the electricity, thus if we calculate the ratio of electric connection at household level across the district, province or nation then it will provide a different numbers.

Percentage 2016 To date Potential Division
100.00% 1,475 1,475 1,475 Cities/Municipalities
99.97% 36,051 36,051 36,061 Barangays
89.82%[13] 118,693 131,315[13] 146,191 Sitios
87.73%[13] 11,724,640 13,184,523[13] 15,028,900 Households

New power connections as of June 30, 2018.[14]

FY 2018 H1 2018 Luzon Visayas Mindanao
460,000 260,224 106,898 69,784 83,542
100.00% 56.57% 23.24% 15.17% 18.16%

OrganizationEdit

List of board of administratorsEdit

Designation Full Name Term Began Term Ended
Chairman of the Board Secretary Alfonso G. Cusi July 1, 2016 Incumbent
Ex-officio Member Emmanuel P. Juaneza October 19, 2021 Incumbent
Member Agustin L. Maddatu July 1, 2013 Incumbent
Member Eugene A. Tan March 20, 2015 Incumbent
Member Joseph D. Khonghun July 1, 2013 March 9, 2015*
Member Rene M. Gonzales May 10, 2017* Incumbent
Member Victor G. Chiong May 21, 2015 May 9, 2017
Member Wilfred L. Billena July 1, 2011* August 15, 2014

List of NEA administratorsEdit

Administrator Term Began Term Ended President
Emmanuel P. Juaneza October 18, 2021[15] Incumbent Rodrigo Duterte
Rossan SJ. Rosero-Lee (Acting) September 8, 2021[16] October 15, 2021 Rodrigo Duterte
Edgardo R. Masongsong November 18, 2016 August 21, 2021[17] Rodrigo Duterte
Sonia B. San Diego (Acting) July 1, 2016 November 17, 2016 Rodrigo Duterte
Edita S. Bueno August 1, 2010* June 30, 2016 Benigno Aquino III
Father Francisco G. Silva July 1, 2004* June 30, 2010* Gloria Macapagal Arroyo
Manuel Luis Sanchez January 20, 2001* June 30, 2004* Gloria Macapagal Arroyo
Conrado Estrella III July 1, 1999* January 19, 2001* Joseph Estrada
Rodrigo Cabrera 1986* 1998* Corazon Aquino
General Pedro Gallarza Diaz Dumol 1972* 1986* Ferdinand Marcos

List of deputy administratorsEdit

Deputy Administrator Current Department/Division (Effective January 2019)[18] Previous Department/Division
Sonia B. San Diego Corporate Resources and Financial Services (CRFS) Electric Cooperatives Management Services (ECMS)
Atty. Rossan SJ. Rosero-Lee Legal Services Special Concerns Office
Atty. Vicar Loureen G. Lofranco Electric Cooperatives Management Services (ECMS) Corporate Resources and Financial Services (CRFS)
Engr. Artis Nikki L. Tortola Technical Services Technical Services

See alsoEdit

ReferencesEdit

  1. ^ "Memorial to PGD". capelco.com.
  2. ^ "NEA chief's top priority: Cheaper power for barrios". Manila Standard.
  3. ^ "R.A. 2717". The LawPhil Project.
  4. ^ "Reparations Agreement between Japan and the Republic of the Philippines" (PDF). 1956-07-23 – via The George Washington University.
  5. ^ "R.A. 6038". The LawPhil Project.
  6. ^ "Presidential Decree No. 269, s. 1973". Official Gazette of the Republic of the Philippines. December 2019.
  7. ^ "REPUBLIC ACT 9136". www.nea.gov.ph.
  8. ^ "Phil Rural Electric Cooperatives Ass'n Inc vs DILG : 143076 : June 10, 2003 : J. Puno : En Banc". sc.judiciary.gov.ph.
  9. ^ Ellorin, BenCyrus G. "FASTLANES: NEA electric cooperatives are not genuine - MindaNews". MindaNews.
  10. ^ a b Diaz, R.E. "G.R. Nos. 176935-36, October 20, 2014 - ZAMBALES II ELECTRIC COOPERATIVE, INC. (ZAMECO II) BOARD OF DIRECTORS". www.chanrobles.com.
  11. ^ "NEA urges electric cooperatives to help lower power charges". The Philippine Star.
  12. ^ "NEA seeking expanded powers". Manila Standard.
  13. ^ a b c d "Status of Energization". www.nea.gov.ph.
  14. ^ "NEA on track to hit 460K new power connections". The Philippine Star.
  15. ^ "NEA welcomes new Administrator". www.nea.gov.ph.
  16. ^ "New NEA OIC designated". www.bworldonline.com.
  17. ^ "Duterte fires NEA chief over corruption". www.pna.gov.ph.
  18. ^ "Log In or Sign Up to View". www.facebook.com.

External linksEdit

Official website