The National Electrification Administration (NEA) gathered key electric cooperative (EC) officials in a summit with the Land Bank of the Philippines (LBP) on Friday, May 10, to discuss its “Anti-Bill Shock” lending program and other services that can help resolve the ECs’ ongoing financial challenges.
NEA Administrator Antonio Mariano Almeda initiated the forum in light of the recent power grid updates that triggered rising electricity costs, causing financial stress to many customers, including the EC member-consumer-owners (MCOs).
“Let’s take advantage of this forum for us to familiarize, strategize how we can make use of the facilities of the Land Bank… Not only the anti-bill shock, but (also) other programs that can augment the financial situations, working capital of the electric cooperatives,” he said.
LBP President and Chief Executive Officer Lynette Ortiz welcomed the opportunity to speak and engage with the power co-ops, as the state-owned bank aims to reinforce its ongoing partnership with the Department of Energy (DOE) and the agencies attached to it.
“We’re going beyond lending facilities today. We are also looking to present to you our digital platform because Land Bank has invested and made our systems very robust to ensure that digital solutions are available to all our clients,” Ortiz told the EC general managers present.
“Land Bank is working very closely with NEA and the Department of Energy in a collaborative effort to support you and ensure reliable and affordable electricity supply nationwide… This is an excellent partnership that we further wish to intensify and cement,” she added.
The ‘Anti-Bill Shock’ lending program was first introduced in April 2023. It was designed to assist power distribution utilities, such as ECs, to cushion the impact of high electricity bills due to increased consumption, especially during extremely hot months, on the MCOs.
Aside from this short-term credit facility, NEA also wants the power co-ops to consider working with state-owned financial institutions in terms of managing their retirement funds and cash flow. “I’m sure Land Bank can offer better being a government financial institution,” Administrator Almeda said.
The NEA chief encouraged the EC general managers to explore other viable options through government financial institutions in managing their resources because he wants to “maintain the sanctity and restrictive nature of the retirement fund.”
In the afternoon session, Administrator Almeda gave a marching order for ECs that have yet to safeguard their financial resources to “immediately to look for an accredited trust fund manager and to turn over the management of the retirement fund.”
The NEA chief said that EC retirement funds have to be strictly regulated.
At least 113 representatives from 102 ECs attended the summit. Other topics discussed during the whole day session include the issues concerning the EC allied organizations, the power supply procurement plan (PSPP), and expiring emergency power supply agreements (EPSA) of some co-ops.
Administrator Almeda and other NEA executives present reiterated their reminders to the EC management personnel to prepare the necessary documents ahead of time for their respective power supply contracts to ensure uninterrupted services to their MCOs down the line. ###
