TAGUIG CITY - Since the outbreak of the COVID-19 pandemic early this year, the Department of Energy (DOE) was able to remit a total of PhP4,155,844,726.88 from the Energy Regulations No. 1-94 (ER1-94) Funds to the concerned host local government units (LGUs) nationwide to support the fight against the spread of the virus and manage the effects of the health crisis.

“At the onset of the COVID-19 crisis in the country, we have issued Department Circular (DC) No. DC2020-04-0008, to help host LGUs by making available ER 1-94 Funds to be used in their fight against the pandemic, in accordance with Republic Act 11469, or the ‘Bayanihan to Heal as One Act,’” Energy Secretary Alfonso G. Cusi said.

“The DOE has successfully implemented and monitored the direct remittance of the financial benefits to host communities/region to ensure that ER 1-94 Funds are utilized immediately for their development needs and for the delivery of essential health services to mitigate the socio-economic impact of the crisis,” he added.  

The ER 1-94 program is a policy under the Electric Power Industry Reform Act of 2001 (EPIRA), which stipulates that host communities will get a share of one centavo for every kilowatt-hour (P0.01/kWh) of the total electricity sales of power generation companies operating in its area. Through DOE Department Circular No. DC2018-08-0021, power generation companies are now allowed to directly download the ER 1-94 funds to their host communities. Streamlining the release of funding will ease the process of implementing projects that benefit the host communities.

Also as of 30 September 2020, initial reports received by the DOE showed that at least Php462 million were directly remitted by the concerned Generation Companies to the host LGUs for their immediate utilization for COVID-19 related responses.

Notably, at the onset of pandemic and containment measures, the DOE DC2020-04-0008 for COVID-19 Response Policy through funding arrangements, were responsive in complementing the needed fund source in the delivery of immediate needs of the host communities.  

While the country was placed on various stages of lockdowns, the ER 1-94 Funds were immediately utilized for a) feeding programs, including the provision of relief goods; b) acquisition of Personal Protective Equipment (PPE) for frontline medical workers, medical  and other decontamination/disinfecting supplies and equipment including alcohol disinfectants, sanitizers, common medicines, thermo-scanners and contactless thermometers, respirators and/or ventilators, UV Lights; and c) for constructing or leasing of medical facilities, tents, safe holding areas, including quarantine centers.
 
Before the year ends, the DOE is processing the transfer of an estimated amount of Php278 million additional ER Funds to various host communities/region (please see Table 2).

This unprecedented experience has given the energy sector the opportunities for creativity, flexibility and ingenuity to reorganize, on the local and national level, and find innovative ways of providing essential health services to all.  

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