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POWER FIRM TO REMIT DIRECTLY CAPITOL’S SHARE IN INCOME
By: Vanessa Almeda | Published Friday, October 25, 2019

The Province of Cebu will directly receive its P2 million income representing its 30-percent share of the one centavo per kilowatt hour produced by Therma Visayas Inc. (TVI), instead of coursing it through the energy department.

In a memorandum of agreement (MOA) signed on October 24, TVI, a a subsidiary of AboitizPower, is going to deposit P1,967,968.07 to the trust fund of the Province which will be downloaded on or before December 31, 2019.

The amount represents the share for development and livelihood and environmental conservation activities covering the period December 26, 2017 to September 30, 2019.

The signing of the MOA is in line with Energy Regulations No. 1-94 (ER 1-94) promulgated by the Department of Energy (DOE) on August 1, 1994 to make host communities and power generation companies work together. This is provided for in Section 5 of Republic Act 7638 or the Department of Energy Act of 1992.

Gov. Gwendolyn Garcia earlier said local government units can only avail of the fund by submitting a project proposal to the DOE which holds the trust account. But with the amended ER 1-94 issued by Energy Secretary Alfonso Cusi on July 26, 2018 through Section 8 of DOE Circular 2018-08-0021, and which took effect August 23 on the same year, power generators and their beneficiaries are required to open “interest-bearing current accounts” for the direct remittance of “financial benefits” to host beneficiaries.

With the signing of the agreement, the Capitol will be responsible in the opening and maintenance of two accounts: one for development and livelihood; and another for environment conservation activities.

TVI, on one hand, shall remit directly to the Province which will be deposited to these accounts, its share of the development and livelihood fund (DLF) and reforestation, watershed management, health and/or environment enhancement fund (RWMHEEF).

The funds will be remitted on a quarterly basis based on the reported electricity sales wherein the first billing will be remitted on or before December 31, 2019.

For its next remittance, the power generator will deposit the funds within 15 calendar days after the end of each billing quarter.

Last Monday, October 21, the Provincial Board (PB) signed a resolution authorizing Garcia to sign and execute, for and in behalf of the province of Cebu, the MOA with TVI.

During the MOA signing, TVI was represented by its president and chief operating officer Daniel C. Aboitiz, Gov. Garcia for the Province of Cebu, and witnessed by PB members John Ismael Borgonia (3rd District) and Horacio Franco (4th District). 

Gov. Gwen Garcia had asked other power generation companies to come forward with similar draft agreements for the Capitol to get its share of income. (Vanessa L. Almeda)