As the Philippines continues to weather storms, earthquakes, and other environmental hazards, the National Electrification Administration (NEA) enjoined all electric cooperatives (ECs) to stay ready in the event of serious calamities by obtaining insurance policies for their critical assets.

In a memorandum dated 10 September 2024, the NEA through Deputy Administrator for Technical Services Engr. Ernesto Silvano, Jr. sought information from all ECs under its watch regarding insurance coverage for their technical and operational facilities.

“In the aftermath of a disaster/calamity, the cost of rehabilitation/restoration of the damaged assets can be substantial. Insurance helps ensure that assets are quickly restored or replaced, reducing downtime and maintaining operational efficiency,” Silvano wrote in the memo.

The NEA official underscored the importance of having vital equipment protected to ensure uninterrupted electricity services for the ECs’ member-consumer-owners in their respective coverage areas.

The state-owned corporation enumerated the following as critical power distribution assets: generation and sub-transmission facilities, distribution infrastructure (such as substations, feeder units, protection equipment, transformers, etc.), buildings and facilities, warehouses, vehicles, IT equipment, and related properties.

The NEA said the order is in line with the six pillars of the Resiliency Compliance Plan (RCP) based on a circular released by the Department of Energy in 2022 pertaining to “Disaster Risk Financing and Insurance.”

The ECs are requested to submit related documents before the NEA Disaster Risk Reduction and Management Department (DRRMD) on or before 20 September 2024.###