Philippines: Duterte signs law on Electric Cooperatives Emergency Fund
President Rodrigo Duterte has signed into law a measure providing support to electric cooperatives adversely affected by calamities.
Approved on June 29, Republic Act 11039 mandates the creation of an Electric Cooperatives Emergency and Resiliency Fund (ECERF) to be managed and administered by the National Electrification Administration (NEA).
An initial fund of P750 million shall be taken from the National Disaster Risk Reduction and Management Fund, and then be released to the NEA Quick Response Fund for proper disbursements to qualified electric cooperatives.
“In case of a deficiency of the fund, the NEA shall seek ... allocation of a supplementary budget from the NDRRM Fund, subject to approval by the President of the Republic of the Philippines,” the law stated.
NEA is mandated to formulate policies and coordinate implementation of activities involving electric cooperatives “relative to emergency and resiliency management” in consultation with the National Disaster Risk Reduction and Management Council (NDRRMC).
NEA has the power to compel electric cooperatives in submitting vulnerability and risk assessment and emergency response plans as well as review, approve, and certify, in consultation with the NDRRMC, the financial requirements of the cooperatives in relation to disaster mitigation, preparedness, and prevention.
All electric cooperatives are required to submit and update each year their respective vulnerability and risk assessments, resiliency compliance plans, and emergency response plans.
“The failure to submit said assessment and plans shall bar the ECs (electric cooperatives) from accessing the ECERF,” the law stated.
NEA is empowered to receive donations in cash and in kind such as materials, or equipment, intended to restore electric cooperatives’ infrastructure damaged by a “fortuitous event or force majeure” subject to existing auditing rules and regulations.
It is also mandated to determine the annual ECERF budget for approval by Congress.