briefing for doe secretary hon. carlos … 1 administrator edita s. bueno november 7, 2012 briefing...
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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
2
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%
4
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3
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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4
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
11/14/2012
5
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
11
11/14/2012
6
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
13
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7
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:
11/14/2012
8
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
17
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9
ACTUAL FIELD VISITATION
HAULING POLE ERECTION
STRINGING
ENERGIZATION
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
INITIATIVES ON P-NOY’S SEP & BLEP
19
11/14/2012
10
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
21
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11
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
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
THE AGENCY: NEA
25
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12
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
11/14/2012
13
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
11/14/2012
14
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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15
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
“Energizing the Countryside, Electrifying the Future”
VISION
33
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16
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
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
2012 CORPORATE PERFORMANCE COMMITMENTS
PERFORMANCE MEASURES TARGET ACTUAL
II. FINANCIAL PERSPECTIVE
Amount of Loan Facilitated (Php
Billion) 1.3 1.494
Collection Efficiency 98% 100%
Profitability Positive Positive
Debt Servicing 100% 100%
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
2012 CORPORATE PERFORMANCE COMMITMENTS
11/14/2012
17
PERFORMANCE MEASURES TARGET ACTUAL
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
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
2012 CORPORATE PERFORMANCE COMMITMENTS
GUIDING TENETS
37
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18
Honesty & Integrity
Leadership & Initiative
Commitment
Friendliness & Participation
Hardwork
Teamwork
Generosity
38
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
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
11/14/2012
20
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
43
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21
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
45
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22
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
11/14/2012
23
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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24
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
51
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25
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
53
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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
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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
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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
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
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
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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
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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
RURAL ELECTRIFICATION PROGRAM
`
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
RURAL ELECTRIFICATION PROGRAM
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
TECHNICAL
69
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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
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36
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
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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National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
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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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
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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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National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
PERFORMANCE ASSESSMENT OF ELECTRIC
COOPERATIVES
87
COLOR CODING SCHEME
ANNUAL CATEGORIZATION
ANNUAL CLASSIFICATION
NEXT . . .
KEY PERFORMANCE STANDARD
SCHEME
88
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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
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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
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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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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
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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
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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
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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
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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
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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
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54
CARAGA
ANECO GREEN
ASELCO GREEN
SURNECO GREEN
SIARELCO GREEN
DIELCO GREEN
SURSECO I GREEN
SURSECO II GREEN
ANNUAL ECs CATEGORIZATION
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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
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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
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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.
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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
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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
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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
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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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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
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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
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64
INSTITUTIONAL
PERFORMANCE STANDARDS
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
PERFORMANCE STANDARDS
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
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65
INSTITUTIONAL
PERFORMANCE STANDARDS
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
PERFORMANCE STANDARDS
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
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INSTITUTIONAL
PERFORMANCE STANDARDS
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
PERFORMANCE STANDARDS
C. Information ,
Education &
Communication
Technology
Website*
Short Messaging System*
Hotline for Complaints*
Automated Meter Reading
Billing & Collection
On-line Tellering
*For Off-Grid Ecs
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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
(Unplanned Interruptions)
CAIDI
Consumer Average Interruption
Duration Index
4.0
Hour Interruption
(Unplanned Interruptions)
TECHNICAL PERFORMANCE
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%
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TECHNICAL PERFORMANCE
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)
Every 21st of the following
month
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OTHER PERFORMANCE
STANDARDS
Monthly Engineering Report
(MER)
Every 21st of the following
month
Enhanced Integrated
Computerized Planning Model
(e-lCPM)
1st Quarter of the succeding
year
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
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
11/14/2012
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
National Electrification Administration www.nea.gov.ph
“Energizing the Countryside, Electrifying the Future”
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
System Loss Reduction Program
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
11/14/2012
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.
11/14/2012
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: neadmpcd@yahoo.com
For updates and inquiries:
158
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
System Loss Reduction Program
Voltage Upgrading of Distribution Line
Distribution Analysis Computer Software
PARTNERSHIP WITH
INTERNATIONAL INSTITUTION
n a e 159
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
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