BRIEFING FOR DOE SECRETARY HON. CARLOS … 1 ADMINISTRATOR EDITA S. BUENO November 7, 2012 BRIEFING FOR DOE SECRETARY HON. CARLOS JERICHO L. PETILLA Energizing the countryside, electrifying

11/14/2012

1

ADMINISTRATOR EDITA S. BUENO November 7, 2012

BRIEFING FOR DOE SECRETARY

HON. CARLOS JERICHO L. PETILLA

E n e r g i z i n g t h e c o u n t r y s i d e , e l e c t r i f y i n g t h e f u t u r e NATIONAL ELECTRIFICATION ADMINISTRATION

1

FLOW OF PRESENTATION

The Rural Electrification Program

The Agency: NEA

The Electric Cooperatives

Performance Assessment for ECs

Major Concerns

Accomplishments/Milestone

2

11/14/2012

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National Electrification Administration www.nea.gov.ph

“Energizing the Countryside, Electrifying the Future”

RURAL ELECTRIFICATION PROGRAM

“Rural Electrification is considered as an infrastructure

like roads & bridges” 3

STATUS OF ELECTRIFICATION PROGRAM STATUS OF BARANGAY ENERGIZATION

LEGEND

119 ECs

24 PIOUs/LGUs

As of August 2012

LUZON

3 Unenergized

99% Energized

VISAYAS

2 Unenergized

99% Energized

MINDANAO

9 Unenergized

99% Energized

TOTAL

14 Unenergized

99% Energized

ELECTRIC DISTRIBUTION UTILITIES

LUZON - 8 EDUs VISAYAS - 4 EDUs MINDANAO - 4 EDUs TOTAL 16 EDUs

As of June 1969

Source: EA Annual Report 1968-1969

Towns/Cities Potential 1,422 Energized 739 Energized 51.97%

Connections

Potential 6.210 M

Served 1.217 M

Energized 19.60%

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Electric

Distribution

Utilities

Municipalities/

Cities Barangays Connections

Coverage Energized % Coverage Energized % Potential Served %

Electric

Cooperatives 1,475 1,475 100 36,063 36,049 99.9 12,305,500 9,506,214 77

Meralco 111 111 100 4,332 4,332 100 4,979,955 4,931,696 99

PIOUs/LGUs/

Others 48 48 100 1,630 1,624 99.6 1,486,000 1,195,000 80

TOTAL

PHILIPPINES 1,634 1,634 100 42,025 42,005 99.9 18,771,455 15,632,910 83

PERFORMANCE BY UTILITY

(As of August 2012)

5

The remaining 14 barangays enumerated below are all beneficiaries of DOE – ER 1-94, BEP and RAES, either with grid or solar connection.

TOWN/PROVINCE BARANGAY TOWN/PROVINCE BARANGAY

Removed by DOE from government’s

target

Remaining 9 unenergized barangays

in the EC franchise area

REAL, QUEZON MAUNLAD MAPUN, TAWI-TAWI GUPPAH

CAMALIG, ALBAY ANOLING LUBBAK PARANG

DARAGA, ALBAY MI-ISI DUHUL BATU

MALINAO, AKLAN CAPATAGA DATU BLAH SINSUAT,

MAGUINDANAO RESA

STA. MARGARITA,

SAMAR AVELINO

GUINDULUNGAN,

MAGUINDANAO DATALPANDAN

DATU UNSAY,

MAGUINDANAO PAMALIAN

TALAYAN,

MAGUINDANAO FUKOL

MARADER

TAMAR 6

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COVERAGE AREA

(ECs vs. Total Philippines)

TOTAL

80

WITHIN

ECs

FRANCHISE

77

(96%)

TOTAL

1,494

WITHIN

ECs

FRANCHISE

1,387

(93%)

TOTAL

140

WITHIN

ECs

FRANCHISE

88

(63%)

TOTAL

42,027

WITHIN

ECs

FRANCHISE

36,063

(86%)

7

STATUS OF ENERGIZATION – 119 ECs

As of August 2012

REGION PROVINCE MUN/CITY BARANGAY SITIO CONNECTION

COVERAGE ENERGIZED % POTENTIAL CONNECTED %

I 4 116 3,027 8,094 7,784 96 887,800 821,567 93

II 5 96 2,369 1,926 936 49 701,900 600,584 86

CAR 6 73 1,112 5,093 3,370 66 333,200 278,078 83

III 6 100 2,236 5,071 4,417 87 1,213,300 1,145,099 94

IVA 3 71 1,945 5,626 4,788 85 688,400 622,985 90

IVB 5 69 1,416 6,367 3,972 62 559,900 416,903 74

V 6 112 3,408 5,606 2,272 41 1,041,900 832,434 80

LUZON 35 637 15,513 37,783 27,539 73 5,426,400 4,717,650 87

VI 6 132 3,870 13,659 10,006 73 1,338,700 1,044,598 78

VII 4 121 2,713 16,579 14,395 87 939,700 777,677 83

VIII 6 142 4,371 7,372 5,334 73 816,000 644,691 79

VISAYAS 16 395 10,954 37,610 29,735 79 3,094,400 2,466,966 80

IX 3 72 1,865 8,276 5,422 66 636,600 406,347 64

X 5 85 1,843 7,521 5,392 72 639,300 529,309 83

XI 4 44 896 6,101 3,088 51 534,700 349,587 65

XII 4 55 1,230 10,172 5,422 53 788,800 434,528 55

ARMM 5 114 2,438 1,503 546 36 686,400 154,319 22

CARAGA 5 73 1,310 6,126 5,189 85 498,900 447,508 90

MINDANAO 27 443 9,582 39,699 25,059 63 3,784,700 2,321,598 61

TOTAL 77 1,475 36,049 115,092 82,333 72 12,305,500 9,506,214 77 8

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Poverty Reduction and Empowerment of the Poor & Vulnerable

Social Protection &

Welfare

4Ps, KALAHI-CIDSS:KKB, Social Pension

for Indigent Senior Citizens, Supplemental

Feeding Program

Affordable housing, agrarian

reform, rural

electrification,

potable water, etc.

More classrooms, more

teachers, better delivery

system

Insurance Coverage, Accessible

facilities, More professionals

PRESIDENT AQUINO’S ECONOMIC FRAMEWORK

1969 to 2009 2010 to present

Barangay Electrification

Program Sitio Electrification Program/

HH connection

For on-grid areas

when the distribution line

reached the barangay hall

For off-grid areas

When at least twenty (20)

households have installed

one (1) solar PV system per

household

Completed sitio means:

Infrastructure for the standard

distribution system is in place

Electric cooperative is already

processing the requirements for

household connection

Household consumers are working

for LGU requirements

Energized sitio is when households in a

sitio are already receiving power

Definition of Rural Electrification

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SITIO ELECTRIFICATION PROGRAM

32,441

Sitios

4,487

3,783

12,114

10,537

134,610

222,800

606,700

526,850

TARGETS NO. OF

SITIOS

TARGET

HOUSEHOLDS

1.5 M

Households

2,789

3,877

12,114

10,537

PROJECT

COST (PM)

Total Project

Costs

P 30,131M

12

BARANGAY LINE ENHANCEMENT

PROGRAM

2,341

Barangays 391

600

600

750

TARGETS NO. OF

BARANGAYS

19,550

30,000

30,000

37,500

TARGET

HOUSEHOLDS

117,050

Households

1,087.5

1,500.0

1,500.0

1,875.0

PROJECT

COST (PM)

Total Project

Costs (PM)

P 5,962.50

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STATUS OF 2011-2012 SUBSIDY UTILIZATION

(Php Million)

As of October 31, 2012

Particulars RELEASED

TO NEA

ALLOCATED/

RELEASED TO

ECs

BALANCE NO. OF

SITIOS/BRGYS

SITIO ELECTRIFICATION

2011

STIMULUS PACKAGE 814.41 809.99 4.42 1,520

2012

2011 BATCH 2 585.95 556.14 29.81 833

2012 BUDGET 2,000.00 1,919.24 80.76 3,408

DAP – ARMM 200.00 189.68 10.32 246

DAP - BATCH 2 1,264.00 873.79 390.21 1,520

TOTAL 4,049.95 3,538.85 511.10 6,007

BRGY. LINE ENHANCEMENT

2011 STIMULUS PACKAGE 522.30 522.30 - 207

2012 BUDGET 568.50 171.93 396.57 189

TOTAL 1,090.80 694.23 396.57 396 14

President Aquino’s 2012

Sitio Electrification Program

Accomplishments (As of 31 October 2012)

SOURCE OF

FUNDS

2011

STIMULUS

FUND

2012

REGULAR

SUBSIDY

ARMM

STIMULUS

FUND

BARANGAY LINE

ENHANCEMENT

PASS-BY SITIOS

TOTAL

TARGET 833 3,408 246 - 4,487

ENERGIZED/

COMPLETED 885 2,834 207 345 4,271

% ENERGIZED 106% 83% 84% - 95%

UNDER

CONSTRUCTION - 618 13 - 631*

INITIAL HH

BENEFICIARIES 9,204 25,297 3,081 - 37,582

15

*To be completed by 30 November 2012 DAP Fund of Php 1.264 B, 2012 second batch for 1,520 sitios was released on 16 October 2012. Technical documents such as staking sheets and budget costs of sitios are under NEA evaluation As of to date, Php Php 873.79 M were allocated to 1,485 sitios.

NOTE:

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President Aquino’s 2012

Barangay Line Enhancement Program

Accomplishments

(As of 31 October 2012)

BATCHES TARGET ENERGIZED %

ENERGIZED

UNDER

CONS-

TRUCTION

INITIAL HH

BENEFICIARIES

FIRST 202 203 100% 7 7,304

SECOND 189* - - 79 -

TOTAL 391 203 52% 86 7,304

16

* Fund released on 16 October 2012

TYPICAL “LUKSORIOUS” ROAD TO FAR FLUNG SITIOS

USUAL MEANS OF TRANSPORTATION IS MOTORCYCLE CALLED

“HABAL-HABAL”

ACTUAL FIELD VISITATION

TRANSPORTATION OF ELECTRICAL MATERIALS

VIA ZIP LINE

HAULING OF POST

THROUGH “MANO-MANO”

METHOD TO HIGHLAND

SITIOS

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ACTUAL FIELD VISITATION

HAULING POLE ERECTION

STRINGING

ENERGIZATION



INITIATIVES ON P-NOY’S SEP & BLEP

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Creation of the Accelerated Total

Electrification Office (ATEO) to oversee full

implementation of SEP & BLEP

PROGRAM

DIRECTOR

PROJECT

OFFICE

FOR LUZON

PROJECT

OFFICE

FOR VISAYAS

PROJECT

OFFICE

FOR MINDANAO

PROGRAM

CONTROL

CENTER

Directly under the supervision of the Deputy Administrator for Electric Distribution Utilities

n a e 20

Tapping ECs & Regional Associations

• Proper planning of ECs for final & complete list of sitios for implementation until 2015

• Accreditation of technical evaluators

• Assistance from Regional Associations in the inventory & training of linemen and electricians; regional procurement of equipment & materials; and possibly final inspection & close out of projects.

• Participation of Task Force Kapatid

n a e

RESULT: CREATION OF A FORMAL INDUSTRY WITHIN THE ECs

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Strategies Formulated into Policies

to Facilitate Implementation

• Inclusion of housewiring cost for the first 20 to 30 marginalized households amounting to P2,500 each

• MOA between EC and LGU to ease compliance requirements such as permits, taxes & others; proper coordination with barangay officials to secure all requirements

• Parallel pre-membership activities; membership application & assistance to potential consumers

• Review & issuance of updated price index periodically

n a e 22



THE AGENCY: NEA

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PERTINENT LAWS

Converted NEA into a government owned

& controlled corporation

Capitalization:

P 1 Billion

Broadened NEA’s lending and

regulatory power over the electric

cooperatives

Capitalization:

P 5 Billion

Provided NEA with additional mandate

to prepare ECs to operate & compete in

a deregulated environment

Capitalization:

P 15 Billion

Presidential Decree 269

(1973)

Presidential Decree 1645

(1979)

Republic Act 9136

(2001)

REPUBLIC ACT 6038. STATE POLICY OBJECTIVE:

TOTAL ELECTRIFICATION OF THE COUNTRY

26

CORPORATE

SECRETARY’S

OFFICE

DEPUTY ADM INISTRATOR

CORPORATE RESOURCES

& FINANCIAL SERVICES

DEPUTY ADMINISTRATOR

FIELD

OPERATIONS

DEPUTY

ADMINISTRATOR

LEGAL SERVICES

DEPUTY ADMINISTRATOR

ELECTRIC DISTRIBUTION

UTILITIES

CORPORATE

PLANNING

OFFICE

INFO TECH &

COMMUNICATION

SERVICES

DEPARTMENT

ACCOUNTS

MANAGEMENT

& GUARANTEE

DEPARTMENT

HUMAN

RESOURCES &

ADMINISTRATION

DEPARTMENT

ENGINEERING

DEPARTMENT

INSTITUTIONAL

DEVELOPMENT

DEPARTMENT

EC AUDIT

DEPARTMENT

MANAGEMENT

ASSISTANCE

GROUP

PUBLIC

AFFAIRS

OFFICE

INTERNAL AUDIT

& QUALITY

STANDARDS

MGMT OFFICE

ADMINISTRATOR

FINANCE

SERVICES

DEPARTMENT

ACCELERATED

TOTAL

ELECTRIFICATION

OFFICE

OFFICE OF

CORPORATE

& ELECTRIC

COOPERATIVES

TRAINING

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NEA RESTRUCTURING

CY 2003 CY 2004 %

REDUCTION

Plantilla Position

965 422 56

Manned Position

730 316 57

Department 16 10 38

Division 49 23 53

AS OF OCTOBER

2012

416

290

10

23

PROFESSIONAL PROFILE

I CESOs, CES/CSE Eligibles 18

II Bar/Board

Engineers 44

CPAs 36

Lawyers 9

III Educational Attainment

Doctorate 1

Masterate 35

Accounting/Economics 87

Engineering 60

Other Disciplines 113

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MANDATE Total electrification on an area coverage basis and

competence enhancement of electric distribution

utilities in a deregulated environment

VISION Total electrification on an area coverage

basis by 2020

MISSION To pursue the mandate of rural electrification and to provide Financial, Institutional and Technical assistance to Electric Distribution Utilities to make them highly competitive in delivering quality service

30

Corporate Credo

Go where the darkness looms

Create the path of light Walk with the rural folks

Install the lines of progress

Work with the electric cooperatives

Spin the engine of growth Bring electricity to the industries

Communities and households

Protect the consumers’ interest Serve with your hearts

Share your talents And make a difference

Live Honestly

Work Efficiently Promote Solidarity

31

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CORE COMPETENCIES OF NEA

32

1. Loan & Subsidy Management

2. Internally Generated Fund Management

3. Guaranteeing

4. Fund Sourcing

1.Organizational Development Interventions

2. Human Resource Management

3 . Training & Development

4. Consumer Education & Protection

1.

1. Distribution System Analysis

2. Power Development Utilization

3. Distribution & Substation

4. System Planning & Design

5. Project Supervision

1. Management Assistance

2. Audit

3. Regulation & Remedies

4. Standards

FINANCIAL INSTITUTIONAL TECHNICAL SUPERVISORY

MISSION

To pursue the mandate of rural electrification and to provide FIT assistance to EDUs to make them highly competitive in delivering quality service

Total electrification on an area coverage basis by 2020

CORE VALUES

Absolute Honesty, Maximum Efficiency, Total Solidarity IN

TE

RN

AL

PR

OC

ES

S

FIN

AN

CE

S

TAK

EH

OL

DE

RS

LE

AR

NIN

G

&

GR

OW

TH

OPERATIONAL EFFICIENCY

To enhance the human resources’ knowledge, skills

and behavioral competencies

To continue the upgrade of organizational

infrastructures

To sustain the organization’s viability & ensure accountability &

transparency

To generate peak performance among the ECs to ensure

competitiveness

STRATEGIC ALLIANCE

To ensure that the ECs provide accessible, quality and reliable

service to the consumers

National Electrification Administration

www.nea.gov.ph


VISION

33

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PERFORMANCE MEASURES TARGET ACTUAL

I. STAKEHOLDERS’ PERSPECTIVE

Sitio Energization 4,487 3,858

Barangay Line Enhancement 391 203

Reduction of Ave Sys Loss from 11.87% in 2011 11.75% 12.81%

Consumer Connections 420,000 255,501

No. of NEA – Supervised ECs with Positive

Financial Operation 88 77



2012 CORPORATE PERFORMANCE COMMITMENTS


II. FINANCIAL PERSPECTIVE

Amount of Loan Facilitated (Php

Billion) 1.3 1.494

Collection Efficiency 98% 100%

Profitability Positive Positive

Debt Servicing 100% 100%




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III. INTERNAL PROCESS PERSPECTIVE

Average Response Time in Hours

Fast Lane Documents 42 40.83

Regular Lane Documents 160 124.32

IV. LEARNING & GROWTH

Average Performance Rating 94% 94%

Number of Officials/Employees graduates

from Certification /Competency Programs

NEA 335 444

ECs 3,000 3,254




GUIDING TENETS

37

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Honesty & Integrity

Leadership & Initiative

Commitment

Friendliness & Participation

Hardwork

Teamwork

Generosity

38



FINANCIAL

39

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19

SOURCES OF FUNDS

As of September 30, 2012

A. Government Equity (Php 5.147 B)

Authorized 150 M shares @Php 100 par value b 15.000

Subscribed and Paid 4.970

Donated Capital 0.177 5.147

B. Foreign Loans Availed (US$ 585.91 M)

Contracted 586.39

Availed 585.91

Paid 553.26

Unpaid 32.65*

* Php 857.71 M 40

SUMMARY OF FOREIGN LOANS AS OF 30 SEPTEMBER 2012

(US$ Million)

Rural Electrification:

Total Loan

Contracted Total Availed

Matured/

Paid

Outstanding

Principal Balance

USAID 77.455 77.455 66.498 10.957

IBRD 133.500 133.296 133.296 0

OPEC 13.600 13.557 13.557 0

OECF 80.834 80.834 63.742 17.092

EDC 18.930 18.930 18.930 0

CHASE MANHATTAN 16.000 15.872 15.872 0

ADB 53.100 53.060 53.060 0

KFW 44.690 44.688 42.974 1.714

SUB-TOTAL US$ 438.109 US $ 437.692 US $ 407.929 US $ 29.763

Mini-Hydro/Dendro-Thermal

UK (Restructured) 30.050 30.042 30.042 0

PROC 15.050 15.046 15.046 0

OECF 4.300 4.259 4.259 0

FRENCH (Restructured) 37.174 37.174 37.174 0

SUB-TOTAL US $ 86.574 US $ 86.521 US $ 86.521 0

TOTAL (NEA) US $ 524.683 US $ 524.213 US $ 489.363 US $ 29.763

Php 739,115

Notes: 1.First loan was contracted from USAID in 1971 2.Last loan contracted was OECF in 1994

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SUMMARY OF FOREIGN LOANS AS OF 30 SEPTEMBER 2012

(US$ Million)

Total Loan

Contracted

Total

Availed

Matured/

Paid

Outstanding

Principal Balance

Conduiting Services

OECF

- MERALCO 48.020 48.017 48.017 0

- VECO 13.690 13.681 10.788 2.893

TOTAL CONDUIT US $ 61.710 US $ 61.698 US $58.805 US $ 2.893

GRAND TOTAL US $ 586.393 US $585.911 US $ 553.255 US $ 32.656

Php 118,597

Php 857,712

Notes:

1. Amortization for US$2.893M and forex losses to be incurred paid directly to BTR.

2. NEA charged interest of 1% for MERALCO (fully paid on 12/14/2006) and 1.5% for VECO.

3. The loan was part of OECF contracted in 1990 and 1994.

42

Summary of Foreign Loans

As of 30 September 2012

(US$ Million)

Rural Electrification Loan Outstanding

Maturity Principal Balance

USAID 2017 10.957

OECF 2014 17.092 KFW 2015 1.714

Sub-Total US $ 29.763

Conduiting Services

VECO 2014 2.893 GRAND TOTAL US $ 32.656 Php 857,712

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NEA PAYMENTS January to September 2012 (Php Million) PRINCIPAL INTEREST TOTAL % NEA 644 66 710 100

SUMMARY OF TOTAL REPAYMENTS As of 30 September 2012 (In Million Pesos) PRINCIPAL INTEREST TOTAL % NEA 12,564 4,753 17,317 60 BTR 6,622 5,100 11,722 40 TOTAL 19,186 9,853 29,039 100

DEBT SERVICING

44

DEBT SERVICING OF FOREIGN LOANS

(Php ‘000)

YEAR BTR % NEA % TOTAL

2004 1,314,410 63% 777,661 37% 2,092,071

2005 200,354 12% 1,499,065 88% 1,699,419

2006 132,644 9% 1,343,077 91% 1,475,721

2007 - 988,799 100% 988,799

2008 - 1,008,100 100% 1,008,100

2009 - 1,103.055 100% 1,103,055

2010 - 996,573 100% 996,573

2011 - 952,247 100% 952,247

2012

(Jan – Sept) - 710,096 100% 710,096

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C. Subsidies from NG (Php 18.163B)

Regular Subsidy for RE 9.213 *

Stimulus Package (2011) 1.923

Disbursement Acceleration Program (DAP) 1.464

Congressional Initiative Allocation (CIA) 0.900

PDAF 0.892

CARE 0.500

Calamity Grant 0.669

ER-1-94 0.180

Pantawid Kuryente 2.422

D. Collection from PSALM (Php 14.579 B)

EC Loans Assumed 17.978

Payment As of September 30, 2012 14.579

Balance 3.399

SOURCES OF FUNDS

(As of September 30, 2012)

46 * As of October 31, 2012

CASH POSITION

As of November 5, 2012

Particulars AMOUNT

(Php M)

Subsidy Funds 3,475

Loan/General Funds 2,808

Restricted Funds 60

Total 6,343

(US $ M)

Insurance Proceeds 0.239

IFB 80 A 0.017

Damaged Transformer Claim 0.143

Retention Payable 0.237

Total 0.636

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INCOME STATEMENT (Php M)

For the Period Ended 30 June 2012

(With Comparative figures for 2011)

Particulars 2012 2011

Total Income 334 281

Expenses

Personal Services

MOOE

Financial Expenses

76

53

36

71

38

44

Total Expenses 165 153

Net Income from Operations 169 128

Other Income 22 13

Net Income before Income Tax 191 141

CORPORATE OPERATING BUDGET

(Php M)

PARTICULARS 2012 2013

OPERATING EXPENDITURES

Personal Services

MOOE

Office Furniture & Equip.

210.17

177.21

46.52

226.04

393.94

32.41

CAPITAL EXPENDITURES

Loans to ECs

Short Term Credit Facility (STCF )

1,000.00

3,200.00

1,500.00

3,600.00

SUBSIDY for SEP/BLEP 5,140.75 5,405.03

DEBT SERVICE 770.29 575.96

GUARANTEE FUND 500.00 500.00

OTHERS 246.00 -

TOTAL 11,290.94 12,233.38 49

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Particulars Adjusted

Budget

Amount

Utilized

% Actual

to Budget

Budget

Balance

Operating Expenditures

Personal Services

MOOE

210.17

177.21

123.98

119.56

59

67

86.19

57.65

TOTAL 387.38 243.54 63 143.84

Rural Electrification

Subsidy for SEP/BLEP

Loans

Office Furniture & Equipment

5,140.75

4,700.00

46.52

2,926.13*

3,215.45*

11.96

57

68

26

2,214.62

1,484.55

34.56

TOTAL 9,887.27 6,153.54 62 3,733.73

Debt Service 770.29 710.96 92 59.33

Others 246.00 65.70 27 180.30

TOTAL 11,290.94 7,173.74 64 4,117.20

STATEMENT OF BUDGET BALANCES (Php M)

As of September 30, 2012

50 * As of October 31, 2012

CORPORATE FINANCIAL PERFORMANCE

2004 2005 2006 2007 2008 2009 2010 2011

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E. Collection from Loan to ECs (Php B)

Total Outstanding Loan As of June 30, 2012 7.099

Average Annual Collection (Principal & Interest) 1.000

F. Other Sources

Service Fees

Training Fees

Interest Income on Deposits

SOURCES OF FUNDS

(As of June 30, 2012)

52

LOAN RELEASES FOR CAPITAL PROJECTS

(Php Billion)

YEAR EC FUNDING

REQUIREMENTS

NEA LOAN

RELEASES %

SEPT 2012 15.062 1.125 7.47

2011 11.598 0.914 8.03

2010 10.441 0.949 9.08

2009 14.903 1.388 9.31

TOTAL 52.004 4.376 8.41

AVERAGE/YEAR 13.001 1.094 8.41

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26

• NEA entered into MOA with the LGU Guarantee Corp. (LGUGC) &

DBP on June 16, 2009 and June 10, 2011, respectively, to co-finance

ECs’ capital expenditures

• LGUGC is the manager of the ECs – Partial Credit Guarantee

Program funded by the Global Environment Facility Grant through the

World Bank.

• LGUGC will guarantee the ECs’ loans (maximum of 80%), from the

Accredited Financial Institutions (11 AFIs).

• LGUGC-AFIs/DBP and NEA shall provide separate financing facilities

based on their individually approved terms and conditions. All facilities

granted by NEA and LGUGC/DBP shall contain a cross default

provision with respect to the financing facility provided by NEA or

LGUGC/DBP, as may be applicable.

CO-FINANCING WITH OTHER FINANCIAL

INSTITUTIONS

54

PARTICIPATING ECs IN THE NEA - LGUGC

CO- FINANCING PROGRAM For the Years 2010 – 2012

(Php’000)

NO. ECs NEA LGUGC

BANKS/FI/s Approved Loan Approved Loan

1. SURNECO 91,168 85,303 UCPB

2 BUSECO 189,558 135,901 BPI

3 FIBECO 382,556 142,877 ALLIED BANK

4 CANORECO 235,135 133,248 BPI

5 MORESCO II 119,739 215,490 BPI

6 SOCOTECO II 95,989 135,437 LGUGC / AFI

7 AURELCO 143,000 56,000 BPI

8 NEECO I 115,000 95,000 ALLIED BANK

9 MORESCO I 116,000 115,000 SECURITY BANK

10 SOCOTECO I 201,223 102,420 BPI

11 BOHECO I 118,270 109,922 DBP

GRAND TOTAL 1,807,638 1,326,598 55

11/14/2012

27

EC UNDER THE NEA – DBP CO- FINANCING

PROGRAM (Php’000)

ECs

Loan (Php’000)

NEA DBP

1 ZAMSURECO II 12,000 23,300

2 SUKELCO 199,260 256,336

3 CASURECO IV 134,424 268,503

4 ZAMECO I 109,819 62,496

Total 455,503 610,635

56

NEA IS COA AUDIT COMPLIANT

Commission on Audit declared the agency as

Audit Compliant for 5 consecutive years

This COA Unqualified Opinion is the fifth

since 2007

NEA is following the COA- prescribed

electronic - National Government Accounting

System (e-NGAS)

An affirmation that NEA is transparent and is

doing its business the right and honest way

57

11/14/2012

28

RESPONSIBLE CITIZENSHIP

One of the first batch of GOCCs and GFIs to pay corporate dividends.

For 2011, a total amount of P 63.36 million was remitted to Department of Finance as dividends and total amount of P51.72 million as income taxes to the Bureau of Internal Revenue.

In sum, NEA paid from 2004 to 2011 a total amount of P280.25 million, of

which P154.31 million as dividends and P125.94 million as taxes.

58

NEA COLLECTION EFFICIENCY (%)

2004 2005 2006 2007 2008 2009 2010 2011

95 100 100 100 97 100 98 98

SUSTAINED HIGH LEVEL COLLECTION EFFICIENCY OF

ELECTRIC COOPERATIVES’ LOANS

59

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29



INSTITUTIONAL

60

HUMAN RESOURCE STRENGTHENING

PROGRAM for NEA & ECs

Training & Development

Creation of the Office for Corporate &

Electric Cooperatives Training

Certification Program on Good

Governance & Competency Upgrading

in Partnership with University of the

Philippines & Ateneo de Manila

University

Program on Leadership, Management &

Values in Partnership with People

Development Academy (PDA) in Toledo

City

61

11/14/2012

30

ORGANIZATION DEVELOPMENT

Formulation of Management Tools

Organizational Structure

Work Flow Process

Plantilla Position

Salary Scale

Job Description

Job Ranking

62

CORPORATE COMMUNICATION

Networking with various

Public

Coalition with Multi-

Sectoral Stakeholders

63

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31

MANAGEMENT ASSISTANCE

Selection and Hiring of Electric Coop (EC) General

Managers

Conduct of EC Board of Directors District Elections

Organization and conduct of briefing /orientation of

the Multi-Sectoral Electrification Advisory Council

(MSEAC)

Development of EC integrated planning system

Conduct of Multi-dimensional Audit (Finance,

Institutional and Technical)

64

CONSUMER EDUCATION & PROTECTION

Assistance in the development

of effective education &

information programs

Development of mechanism to

address various forms of

complaints

Introduction of programs to

encourage consumers’

participation in EC activities

65

11/14/2012

32

OVERSIGHT FUNCTIONS

Formulation of policies, plans and

programs

Temporary deployment of NEA

personnel to manage ECs that need

improvement on their operations

66

CHOSEN BY ASEAN AS MODEL IN

PIONEERING THE


`

ASEAN countries visit NEA to study the organization and

management of Electric Cooperatives and the

implementation of Rural Electrification Program.

MONGOLIA

KENYA INDIA VIETNAM

11/14/2012

33

KENYA (FOURTH BATCH)

MONGOLIA (SECOND BATCH)

INDIA (THIRD BATCH)

CHOSEN BY ASEAN AS MODEL IN

PIONEERING THE




TECHNICAL

69

11/14/2012

34

System Loss Reduction Program

Macro Engineering

Area Engineering

SL Segregation

Linemen & Meter Reading Seminars & Workshops

Upgrading/Rehab of Electric DX System

Acquisition of Sophisticated Electrical Testing Equipment

70

15.15

14.45 14.28 14.30

13.87

13.19

12.59 12.33

11.87

11

12

13

14

15

16

2003 2004 2005 2006 2007 2008 2009 2010 2011

NATIONAL

System loss level continued to improve from a high 15.15% in 2003 to a relatively low 11.87% in 2011. Attainment for the 1st time, a system loss level below the 14% cap in 2007, & still within the 13% cap in the succeeding years.

71

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35

IMPROVEMENT IN

SINGLE DIGIT SYSTEM LOSS

N

U

M

B

E

R

O

F

E

C

s

72

28 SINGLE DIGIT SYSTEMS LOSS

LUZON – 12 ECs VISAYAS – 10 ECs MINDANAO – 6 ECs

BATANELCO 7.18% AKELCO 9.63% MORESCO I 6.66%

BENECO 9.82% ANTECO 9.64% DASURECO 7.74%

AURELCO 9.71% ILECO I 9.60% SIASELCO 8.17%

TARELCO I 7.55% CEBECO I 8.81% DIELCO 5.26%

TARELCO II 8.05% CEBECO II 7.73% SIARELCO 8.93%

PRESCO 9.83% CEBECO III 5.96% SURNECO 9.56%

PELCO I 8.80% CELCO 9.80%

PENELCO 8.96% BANELCO 8.60%

NEECO II- A I 9.03% BOHECO I 7.03%

ORMECO 9.75% LEYECO II 9.89%

TIELCO 9.45% Lowest In Mainland

CANORECO 9.96% Lowest in SPUG

73

11/14/2012

36



SUPERVISORY

74

AUDIT Reviews, approves and recommends to the Board

proposed policies on the organization audit and

control functions, financial and operational

management activities, and approves audit reports

of the Internal Audit.

GOVERNANCE Reviews, approves and recommends to the Board

proposed policies for the operationalization of

NEA’s vision, mission and Corporate Culture and

Corporate Governance principle.

CREDIT & RISK

MANAGEMENT

Reviews, approves and recommends to the Board

the proposed policies and procedures related to

lending functions; management of credit risk and

confirmation of loans approved by the

Administrator delegated by the Board.

THE NEA BOARD AS A POLICY MAKING BODY

THREE WORKING COMMITTEES

75

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37

AUDIT

COLOR

CODING

SCHEME

– Minor findings with

some procedural lapses

that need to be

corrected immediately

– Moderately adverse

findings, and with

procedural lapses that

need immediate

corrections

– – Findings/observations

considered gravely

adverse to good

management

76

THE ADMINISTRATIVE COMMITTEE

As part of the quasi-judicial power of NEA, an Administrative

Committee was created.

Functions:

Investigate & hear all administrative complaints and/or NEA’s

adverse findings against the EC Board of Directors and management

Review & hear all administrative or disciplinary cases decided by the

EC Board of Directors against any member and/or GM imposing a

penalty of dismissal or termination from the service

Review & recommend the “preventive suspension” of EC officials for

Administrator’s approval

Issue through the ADCOM Chair interlocutory orders or the

production of witness/documents

Administer oaths on documents & testimony of witness presented

during hearings/investigations

77

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THE ELECTRIC COOPERATIVES

78

WHAT IS A TYPICAL ELECTRIC

COOPERATIVE

Non-stock, non-profit, service-oriented entity

Corporate powers vested in an elected Board of Directors

Managed by a professional General Manager

Consumers mostly residential (93%), concentrated in

the rural areas

32% of the residential consumers are lifeliners

Average number of municipalities served – 15 to 20

79

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WHAT IS A TYPICAL ELECTRIC

COOPERATIVE

Serves an average of 89,032 consumers in mainland

EC while 31,751 consumers in island EC

Average consumption of residential consumer is

between 50 to 140 KwH per month

Tariff: Cost recovery

Average workforce : 190

119 ELECTRIC COOPERATIVES NATIONWIDE

80

BOARD OF DIRECTORS

GENERAL MANAGER

Financial Services

Department

MEMBER-CONSUMERS

Institutional Services

Department

Technical Services

Department

Internal Audit

Department

Area/Sub- Offices

Meter Reading Billing &

Collection Division

Finance Division

Member Services Division

Human Resource &

Administration

Network Services Division

Asset Management

Division

Technical Audit

Division

Operation Audit

Division

Energy Trading Office

Energy Retail Services

Department

Operation & Maintenance

Division

Office Services Division

Unregulated Retail

Services Division

Regulated Retail

Services Division

Corplan/Info Tech. Office

EC ORGANIZATIONAL CHART

New units

81

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40

PERFORMANCE INDICATORS NATIONAL LUZON VISAYAS MINDANAO

Ave. Revenue/EC/Month P77M P87M P76M P64M

Ave. System Rate (Php/KWH) 8.26 8.99 8.71 6.63

Ave. Investment/Consumer (Php) 6,588 6,907 5236 7377

Ave. Connection/EC 79,448 85,395 79053 69908

Ave. Kms. Of Line Constructed/EC 2,440 2,183 2385 2880

Ave. Conns/Circ. Km of Line 33 38 33 24

Ave. MWH Sales /EC/Month 9,387 9,655 8676 9601

Ave. Monthly KWH

Consumption/ Connection 115 111 106 133

Ave. System Loss (%) 12.81 13.52 12.01 14.19

Ave. No. of Employee/EC 190 217 167 165

Peak Load (MW) 2,822 1,333 648 841

ELECTRIC COOPERATIVES : 2012 AVERAGES

83

ECs POWER MARKET PROFILE

RESIDENTIAL

COMMERCIAL

INDUSTRIAL

PUBLIC BUILDING

OTHERS

93%

5% 1%

1%

4%

2% 5%

17%

24%

52%

5% 15%

23%

53%

CONNECTION SALES

REVENUE

84

11/14/2012

41

Bill Subgroup LUZON VISAYAS MINDANAO NATIONAL

P/kWh % P/kWh % P/kWh % P/kWh %

Generation 5.0709 49.90 5.3256 52.89 3.2597 42.91 4.5521 49.07

Transmission 1.2794 12.59 0.9949 9.88 1.1632 15.31 1.1458 12.35

System Loss 0.9041 8.90 0.8769 8.71 0.6326 8.33 0.8045 8.67

Distribution * 2.0995 20.66 2.1316 21.17 1.9662 25.88 2.0658 22.27

Subsidies** 0.0780 0.77 0.0646 0.64 0.0817 1.07 0.0747 0.81

Gov’t. Taxes *** 0.7301 7.18 0.6762 6.71 0.4937 6.50 0.6332 6.83

Total 10.1620 100.00 10.0698 100.00 7.5971 100.00 9.2761 100.00

ECs’ Effective Unbundled Rates for Residential Customers

June 2012

* Includes Distribution, Supply and Metering Charges ** Includes Lifeline and Senior Citizen *** Includes Universal Charges and Value Added Tax 85

Bill Subgroup

Off-Grid

NATIONAL

P/kWh %

Generation 6.9422 59.06

Transmission 0.0935 0.80

System Loss 0.9254 7.87

Distribution * 2.5052 21.31

Subsidies ** 0.0777 0.66

Government Taxes *** 1.2114 10.30

Total 11.7554 100.00

ECs’ Effective Unbundled Rates for Residential Customers

June 2012

* Includes Distribution Supply and Metering Charges

** Includes Lifeline and Senior Citizen

*** Includes Universal Charges and Value Added Tax 86

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PERFORMANCE ASSESSMENT OF ELECTRIC

COOPERATIVES

87

COLOR CODING SCHEME

ANNUAL CATEGORIZATION

ANNUAL CLASSIFICATION

NEXT . . .

KEY PERFORMANCE STANDARD

SCHEME

88

SEC PETILLA BRIEFING.pptx




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43

OVER-ALL EC PERFORMANCE ASSESSMENT BY

COLOR CODING

OBJECTIVES

To measure the over-all performance and capability of ECs, using critical operational parameters, other than the yearly categorization rating

To determine the level of supervision/assistance which could be extended by NEA

11/14/2012

44

SCHEME

COLOR CODE DEFINITION SCORE

Good performing ECs

Less NEA intervention

More flexibility in operations

85 &

above

Border-liners ECs

Needs “case to case”

supervision

55 - 84

Poor performing ECs

Definite NEA intervention

54 &

below

CRITERIA

MEASURES SCORE

1. EC’s Point Score in the Categorization 70

2. Audit Findings 10

No adverse findings and major

procedural lapses

10

With procedural lapses and/or minor

findings

5

With adverse findings (either on

procurement, employees and official’s

benefit, cash advances, malversation of

funds)

0

11/14/2012

45

CRITERIA

MEASURES SCORE

3. Institutional Strength

Demerit Points: 10

Board - Management Problem/s 3

GM - Employee Relationship Problem/s 3

Non-conduct of AGMA 2

Non-conduct of District Election 2

4. EC Financial Operating Results 10

EC with Net Margin 10

EC with Net Loss 0

TOTAL 100

OVER-ALL SCORING SYSTEM

SCORE CODE

85 & Above GREEN

55 to 84 YELLOW

Below 55 RED

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46

2009 – 13 2009 – 29 2009 – 64

2011 - 64

2010 – 70

GREEN

2011 - 32

2010 - 26

YELLOW

2011 - 10

2010 - 10

RED

RESULTS

2008 – 9 2008 – 29 2008 – 62

REGION I

INEC GREEN

ISECO GREEN

LUELCO GREEN

CENPELCO YELLOW


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47

REGION II

BATANELCO YELLOW

CAGELCO I GREEN

CAGELCO II GREEN

ISELCO I YELLOW

CAR

BENECO GREEN

IFELCO YELLOW

KAELCO YELLOW

MOPRECO GREEN

11/14/2012

48

REGION III

AURELCO GREEN

TARELCO I GREEN

TARELCO II GREEN

NEECO I YELLOW

NEECO II A1 GREEN

NEECO II A2 GREEN

PRESCO GREEN

PELCO I GREEN

PELCO II YELLOW

PELCO III RED

PENELCO GREEN

ZAMECO I YELLOW

ZAMECO II GREEN

REGION IV A

FLECO YELLOW

BATELEC I GREEN

BATELEC II GREEN

QUEZELCO I YELLOW

QUEZELCO II YELLOW

11/14/2012

49

REGION IV B

LUBELCO YELLOW

OMECO YELLOW

ORMECO GREEN

MARELCO YELLOW

TIELCO GREEN

ROMELCO YELLOW

BISELCO YELLOW

REGION V

CANORECO YELLOW

CASURECO I YELLOW

CASURECO II YELLOW

CASURECO IV YELLOW

SORECO I YELLOW

FICELCO GREEN

MASELCO RED

TISELCO RED

11/14/2012

50

REGION VI

AKELCO GREEN

ANTECO GREEN

CAPELCO GREEN

ILECO I GREEN

ILECO II GREEN

ILECO III GREEN

GUIMELCO GREEN

VRESCO YELLOW

CENECO YELLOW

REGION VII

NORECO I GREEN

BANELCO GREEN

CEBECO I GREEN

CEBECO II GREEN

CEBECO III GREEN

PROSIELCO GREEN

CELCO GREEN

BOHECO I GREEN

BOHECO II GREEN

11/14/2012

51

REGION VIII

LEYECO I YELLOW

LEYECO II GREEN

LEYECO III GREEN

LEYECO IV GREEN

LEYECO V GREEN

SOLECO GREEN

BILECO GREEN

NORSAMELCO RED SAMELCO I YELLOW SAMELCO II GREEN

ESAMELCO YELLOW

REGION IX

ZANECO YELLOW

ZAMSURECO I GREEN

ZAMSURECO II RED

ZAMCELCO YELLOW

11/14/2012

52

REGION X

MOELCI I YELLOW

MOELCI II GREEN

MORESCO I GREEN

MORESCO II GREEN

FIBECO GREEN

BUSECO GREEN

CAMELCO GREEN

LANECO YELLOW

REGION XI

DANECO YELLOW

DASURECO GREEN

DORECO GREEN

11/14/2012

53

REGION XII

COTELCO GREEN

SOCOTECO I GREEN

SOCOTECO II GREEN

SUKELCO GREEN

ARMM

TAWELCO RED

SIASELCO YELLOW

SULECO RED

BASELCO RED

LASURECO RED

MAGELCO RED

11/14/2012

54

CARAGA

ANECO GREEN

ASELCO GREEN

SURNECO GREEN

SIARELCO GREEN

DIELCO GREEN

SURSECO I GREEN

SURSECO II GREEN

ANNUAL ECs CATEGORIZATION

11/14/2012

55

OBJECTIVES

To guide NEA in taking appropriate measures in

ECs that need improvement in over-all

operational system.

To maintain established standards to achieve

financial viability.

To guide NEA in approving financial

benefits/incentives to ECs.

ENHANCED EC CATEGORIZATION CRITERIA

CRITERIA POINTS INCENTIVES

Amortization Payment 15 2

System Loss 25 2

Collection Efficiency 15

Payment to GENCOs/TRANSCO 15

Non-Power Cost

(Actual vs. Budget) 10

Energization

Sitio

Connection

7

3

1

Results of Financial Operations 5

TOTAL 95 5

NOTE: Maximum 20 demerit points for Cash Advance

11/14/2012

56

POINTS SCORE

SCORE CATEGORY ADJECTIVAL RATING

90 & ABOVE A+ OUTSTANDING

75 TO 89 A VERY SATISFACTORY

65 TO 74 B SATISFACTORY

55 TO 64 C FAIR

30 TO 54 D POOR

29 & BELOW NO IMPROVEMENT IN

OPERATIONS E

CATEGORIZATION IN RETROSPECT

CATEGORY YEAR/NUMBER OF ECs

2005 2006 2007 2008 2009 2010 2011 %

A+ 58 52 61 62 65 70 58 48

A 14 15 12 12 15 15 24 20

B 16 19 13 14 12 10 10 8

C 10 6 6 4 3 1 4 3

D 9 5 4 4 3 5 4 3

E 10 13 7 4 8 5 6 5

Not

Evaluated 3 10 17 20 14 14 14 12

TOTAL 120 120 120 120 120 120 120 100


11/14/2012

57

ANNUAL ECs CLASSIFICATION

OBJECTIVES

To classify ECs according to their volume of business

without losing their sense of mission for rural

electrification.

To establish guidelines and uniform standards for ECs

belonging to the same classification, including the

grant of proportionate benefits and incentives.

11/14/2012

58

CRITERIA

AVERAGE FOR THE LAST 3 YEARS POINTS

NUMBER OF SERVICE CONNECTIONS 30

VOLUME OF ANNUAL MWH SALES 40

CIRCUIT KILOMETERS OF LINES 30

TOTAL 100

POINTS SCORE

SCORE CLASS

86 TO 100 MEGA LARGE

71 TO 85 EXTRA LARGE

56 TO 70 LARGE

40 TO 55 MEDIUM

BELOW 40 SMALL

11/14/2012

59

CLASSIFICATION IN RETROSPECT

CATEGORY YEAR/NUMBER OF ECs

2005 2006 2007 2008 2009 2010 2011 %

MEGA LARGE 34 35 33 36 37 35 43 36

EXTRA LARGE 36 32 31 30 32 34 31 26

LARGE 31 26 23 20 24 24 19 16

MEDIUM 10 10 11 9 7 7 8 7

SMALL 8 7 4 5 6 6 5 4

NOT

CLASSIFIED 1 10 18 20 14 14 14 12

TOTAL 120 120 120 120 120 120 120 100

KEY PERFORMANCE STANDARDS FOR ECs


11/14/2012

60

OBJECTIVE No. 1

Establish standards as a tool to measure the ECs

financial, institutional and technical performance

as distribution utilities thus determining level of

development and protection of its consumers

KEY PERFORMANCE STANDARDS FOR

ECs

OBJECTIVE No.2 Ensure technical compliance with the standards set in

the Philippine Electrical Code (PEC), Philippine

Grid/Distribution Code (PG-DC), and Distribution

System Open Access Rule (DSOAR), Magna Carta for

Residential Electricity Consumers thus will be

operating in a safe and efficient manner with high

degree of reliability

PEC

PG-DC

DSOAR

11/14/2012

61

OBJECTIVE No. 3 Serve as basis for developing performance

incentive mechanisms for EC officials and

employees

Prescribe reportorial requirements thus

promoting accountability and responsibility in

ECs’ compliances and fiduciary obligations

Overall Performance Rating Scheme

PERFORMANCE RATING POINTS SCORE

Highest 95-100

High 90-94

Good 85-89

Average 75-84

Low 50-74

Poor 49 and Below

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62

Mandatory Performance

Indicators (MPIs)

MPIs should be met to attain a final rating of Good to Highest. Non-

compliance to any MPI even if score is high will result to an

“Average” rating.

PERFORMANCE INDICATORS STANDARDS POINT

FINANCIAL

Profitability Positive 5

Payment to Power Supplier Current 5

INSTITUTIONAL

Customer Service Compliant 14

5% AGMA Attendeed Conducted 3

District Election Conducted 3

TECHNICAL

System Loss Within the Cap 4

Reliability Indices Compliant 15

FINANCIAL PERFORMANCE

STANDARDS

LEVERAGE

Debt Ratio

Debt Service Cover

Up to 0.60x

At least 1.20x

LIQUIDITY RATIO

Quick Ratio

Main Grid

Off Grid

Year 1

At Least

1.00x

At Least

0.70x

Year 2

At Least

1.00x

At Least

1.00x

11/14/2012

63

FINANCIAL PERFORMANCE

STANDARDS

EFFICIENCY

Payment to Power

Supplier/Transmis-sion

(Main Grid)

Payment to NEA

Current

Current

Average Collection Period

Year 1

Not > 45

days

Year 2

Not > 40

days

Year 3

Not >

35 days

PROFITABILITY Positive

INSTITUTIONAL

PERFORMANCE STANDARDS

HUMAN RESOURCE

Leadership and Management

A. Good Governance

Performance Rating of

BOD

Performance Rating of

GM

Very Satisfactory

NEA Audit Rating Blue (ECAD Color

Coding)

External Audit

Opinion

Unqualified

11/14/2012

64

INSTITUTIONAL


B. Employee-Customer Ratio 1:350

C. Capacity Building One (1) training per

employee per year

D. Retirement Fund Funds Availability based on

Updated or Periodic Actuarial

Study (at least 5 yrs)

E. Average Performance

Rating of Employees

At least 90%

INSTITUTIONAL


STAKEHOLDERS:

A. Customer Service

Processing / Approval of

applications service

connection (with

complete requirements)

Within one (1) day upon

application

Service-drop connection Within two (2) days

11/14/2012

65

INSTITUTIONAL


Restoration of service after

line fault on the secondary

side, including sevice

drop/lateral

Within four (4) hours after

receipt of the report

Response time on Consumer

Complaints (Billing,Payment

& Meter Complaints)

Within twenty-four (24)

hours after receipt of

complaints

INSTITUTIONAL


Timeframe in informing

customer on scheduled

power interruptions

At least three (3) days

before scheduled

interruption

Response time to emergency

calls

Within thirty (30)

minutes

Response time to

reconnection of service due

to disconnection

Within twenty- four (24)

hours

11/14/2012

66

INSTITUTIONAL


B. Member’s Participation/Involvement

Annual General

Membership Assembly

(AGMA)

5% of total member-consumers

District Election 5% of Total Members (Except for districts with unopposed

candidates)

INSTITUTIONAL


C. Information ,

Education &

Communication

Technology

Website*

Short Messaging System*

Hotline for Complaints*

Automated Meter Reading

Billing & Collection

On-line Tellering

*For Off-Grid Ecs

11/14/2012

67

TECHNICAL PERFORMANCE

STANDARDS

A. Power Realiability

SAIFI

System Average Interruption

Frequency Index

30

Interruption-Consumer-

Year

(Unplanned Interruptions)

SAIDI

System Average Interruption

Duration Index

45

Hour-Year


CAIDI

Consumer Average Interruption

Duration Index

4.0

Hour Interruption



STANDARDS

B. Performance Quality

Voltage Level

Nominal Voltage

Over Voltage

Under Voltage

230 V

provided that Supply Voltage

(69 KV) is within + or – 5%

variation

Not more than 253 V

Not more than 207 V

Voltage Unbalance Not greater than plus or

minus 2.5%

Loading Unbalance Not greater than plus or minus

10%

11/14/2012

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STANDARDS

C. System Efficiency

System Loss cap Within the cap

Power Factor 90% and above

(Lagging)

OTHER PERFORMANCE

STANDARDS

D. Reportorial Requirements Compliance

Monthly Financial and

Statistical Report (MFSR)

Every 21st of the following

month

Audited Financial Statement Every Mar 31st of the

succeding year

Performance Standard

Monitoring Report (PSMR)


month

11/14/2012

69

OTHER PERFORMANCE

STANDARDS

Monthly Engineering Report

(MER)


month

Enhanced Integrated

Computerized Planning Model

(e-lCPM)

1st Quarter of the succeding

year



MAJOR ISSUES

142


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70

Unavailability of electrical posts, peripherals and accessories

Delayed delivery of: Poles, conductors & hardwares

Construction materials and equipment

Right of Way

Peace and Order

Geographical Location

IMPLEMENTATION CONCERNS

ON SEP & BLEP

n a e 143

1) Certification from the Barangay Chairman on the following

information per sitio:

a. Population

b. Number of households

c. Sitios that need to be energized

d. Definition of the sitio under the SEP

e. Map indicating the sitio to be energized

2) For barangay to be enhanced

a. Map indicating the barangay for enhancement

b. Definition of the barangay under the BLEP

Requirements by the DBM for the release of subsidy fund (Section

11. Special Provisions of the FY 2012 General Appropriations Act:

n a e 144

IMPLEMENTATION CONCERNS

ON SEP & BLEP

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71

Compliance to Building Code requirements : Submission of electrical plan/layout duly signed

by a Professional Electrical Engineer

Local Government Regulation Real Property Tax

Permits/Fees: Mayor Fire Safety Barangay Clearance

CONSUMER CONNECTIONS

n a e 145

No deferment of district elections

Audit

Procurement policy

Hiring & selection of new & technology driven

workforce; Succession Planning

HR capacitating for NEA & ECs

More responsible & knowledgeable Board

Member-consumer focused program/

membership participation

Managing politics

n a e

GOVERNANCE ISSUES

146

11/14/2012

72

Question on Rate Methodology for ECs

Political interference

Conversion to stock cooperative (CDA issue)

n a e

OTHER IMPORTANT ISSUES

147



ACCOMPLISHMENTS/

MILESTONES

148

11/14/2012

73

• ADB Program on Energy For All Partnership – NEA being the only Filipino agency as member of the Steering Committee

• NRECA International Ltd. on Governance Training and Capacity Building for EC BODs until 2015

• World Bank on Rural Electric Cooperatives Reform & Restructuring

• JICA-assisted Projects


Voltage Upgrading of Distribution Line

Distribution Analysis Computer Software

PARTNERSHIP WITH

INTERNATIONAL INSTITUTION

n a e 149

MINI-HYDRO PROJECTS

(2004 to 2011)

MINI-HYDRO PROJECTS

INSTALLED CAPACITY (IN MW)

ELECTRIC COOPERATIVE

Cantingas 0.900 MW ROMELCO

Lower Cascade Linao Cawayan

2.100 MW ORMECO

Sevilla 2.500 MW BOHECO I

n a e 150

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74

NEA

FIRST NATIONAL GOVERNMENT AGENCY & GOCC TO BE

PGS - INSTITUTIONALIZED

AWARDED TO NEA BY THE INSTITUTE FOR SOLIDARITY IN ASIA ON

SEPTEMBER 29, 2010 AT SOFITEL HOTEL, MANILA 151

Recognized as

No.9 among

700 GFIs &

GOCCs on

Corporate

Governance

152

11/14/2012

75

For the first time, August was declared the

NATIONAL ELECTRIFICATION MONTH

Proclamation No. 1743

declared August of

every year as National

Electrification Awareness

Month. 153

First government corporation to comply with the Electronic-New Government Accounting System (E-NGAS)

First government corporation awarded as an Eco-Friendly Government Office by the DENR on June 29, 2011

154

11/14/2012

76

5-STAR Rating in the

National Energy

Conservation Program

in 2005 & 2008

3rd Place among

top 5 National

Awardees in Energy

Management

Program in 2006

155

156

DA Mariano T. Cuenco

was awarded GAWAD CES

for his financial reforms

that turned around NEA ‘s

financial performance in

the black

BEST CUSTOMER AWARD

from the University of the

Philippines, recognizing

organization-client

relationship in HR

competency-based

programs.

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77

Given recognition by the

National Rural Electrification

Cooperative Association

(NRECA), USA for the success

in the Philippine Rural

Electrification Program on

August 4, 2009 during the

International Convention on

Rural Electrification in Manila,

Philippines.

RECOGNITION FROM NRECA, USA

www.nea.gov.ph

email address: [email protected]

For updates and inquiries:

158

http://www.nea.gov.ph/

mailto:[email protected]

11/14/2012

78

ADB Program on Energy For All Partnership – NEA being the

only Filipino agency as member of the Steering Committee

NRECA International Ltd. on Governance Training and Capacity

Building for EC BODs until 2015

World Bank on Rural Electric Cooperatives Reform &

Restructuring

JICA-assisted Projects


Voltage Upgrading of Distribution Line

Distribution Analysis Computer Software

PARTNERSHIP WITH

INTERNATIONAL INSTITUTION

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MINI-HYDRO PROJECTS

(2004 to 2011)

MINI-HYDRO

PROJECTS

INSTALLED

CAPACITY

(IN MW)

ELECTRIC

COOPERATIVE

Cantingas 0.900 MW ROMELCO

Lower Cascade Linao

Cawayan 2.100 MW ORMECO

Sevilla 2.500 MW BOHECO I

n a e 160