House OKs NEA reforms, ups capital to P25 billion

Rep. Erico B. Aumentado

2nd district, Bohol

 

By JUNE S. BLANCO and ROY PADEL

 QUEZON CITY. – The Lower House has approved House Bill 6214 seeking reforms in the National Electrification Administration (NEA) and raising its capital to P25 million.

Principally authored by Rep. Erico Aumentado (2nd District, Bohol), Rep. Henedina Abad (Batanes), Rep. Arnulfo Fuentebella (Camarines Sur), Rep. Eduardo Gullas (Cebu), Rep. Salvador Cabaluna III (Party list 1CARE) ug Rep. Rufus Rodriguez (Cagayan De Oro), among others, the bill aims to provide electricity to more puroks and public schools especially in the countryside.

Aumentado envisions the increased agency capital to replenish and to add to the original capital of P5 million for NEA to expand its services especially now that President Aquino has tasked it to expand the coverage of its rural electrification program through electric cooperatives to include the remote barangays and islets.

The bill also tasks NEA to strengthen electic cooperatives to make them economically developed and competitive in distributing power as provided for in Republic Act 9136 or the Power Industry Reform Act of 2001 that mandates NEA to supervise the operations of all electric cooperatives as well as provide financial and technical assistance.

The reforms bill also empowers NEA to take over the operations of electric cooperatives that are financially bleeding due to mismanagement.

The bill also provides these cooperatives with the right to own and maintain electric sub transmission and distribution lines along with the establishment of plants to generate electricity within their respective franchise areas. Along this line, the bill also allows electric cooperatives to participate in biddings – and gives them preference should their bids tie with the rate of competitors.

Another proposed reform is the provision of autonomy to these electric cooperatives and their respective boards of directors as a cushion against politics and politicians and chief executives who have axes to grind against them, debts of gratitude to repay or vindictiveness against connection applicants who did not vote for them in prior elections like in the cases of Trinidad and Inabanga towns where applicants were refused permits to tap to the system through the Bohol II Electric Cooperative, Inc. (BOHECO II).

To note, Aumentado had signed a memorandum of agreement (MOA) with NEA Administrator Edita Bueno and Boheco to vigorously implement the rural electrification program under the Aquino administration. Aumentado and NEA provided counterpart funds while Boheco II implemented the energization program especially in schools at the sitio level and other communities.

Aumentado had poured P16 million into the project as counterpart to NEA’s over P128 million as Bueno signed. Engr. Carlos Itable, general manager of Boheco II had signed for the electric cooperative.