Meralco inks memorandum of agreement to energize all barangays in its franchise areas

MANILA, Philippines - The Department of Energy (DOE) has signed a memorandum of agreement with Lopez-controlled Manila Electric Co. (Meralco) for the full energization of all barangays within Meralco’s franchise areas this year.

The MOA will signify Meralco’s commitment to electrify the remaining 6.35 percent of barangays in its franchise areas.

This initiative will be in line with government’s thrust of 100 percent electrification by 2009 and 90 percent household electrification by 2017.

The electrification level in the country pegged at 97.71 percent as of end-December 2008.

Based on DOE data, there are only 962 barangays still without electricity out of 41,980 barangays in the country.

It was also noted that 61, or 6.35 percent, of the 962 unelectrified barangays are in Meralco’s franchise areas, 22 of which are located in Laguna, 35 in Quezon and four in Batangas.

Under the agreement, funding for the energization will be sourced from ER 1-94 Electrification Fund accrued from 20 power plants in Region IV-A.

It was estimated that the energization of one barangay alone will require a budget of about P1.5 million. Thus, Meralco would need P91.5 million to energize 61 barangays in its franchise areas. 

Under ER 1-94, the generation company and/or energy resource developer sets aside one centavo per kilowatthour (kwh) of the total electricity sales as financial benefit of the host communities.

These financial benefits are given directly to the host local government or region, especially to the community and people affected while equitable preferential benefits are provided to the host region.

Among the power plants located in Region IV-A with E 1-94 trust accounts are: Malaya thermal power plant, Batangas power plant, FELs power barge, Caliraya hydro electric power (HEP) plant, Kalayaan HEP, Makban geothermal, CBK-Caliraya/Botocan and /Kalayaan HEP, Magellan diesel power plant, Pinamucan power plant, Pagbilao power plant, Mauban (Quezon Power), Sta. Rita gas fired power plant, San Lorenzo gas power plant, Ilijan gas power plant, EEI Power Corp., CIP II Power Corp. and Magellan Cogeneration Inc.