Republic of the Philippines


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Electric Cooperatives Resiliency Act A Welcome Development - Devanadera

Energy Regulatory Commission Chairperson and CEO Agnes VST Devanadera expressed enthusiasm with the recent enactment into law of R.A. 11039 entitled:  “An Act Institutionalizing the Electric Cooperatives Emergency and Resiliency Fund and Appropriating Funds Therefor”.

“The Electric Cooperatives Resiliency Act is a welcome development and will benefit the electric cooperatives (ECs) that get affected by natural calamities.  Having the Electric Cooperatives Emergency and Resiliency Fund (ECERF) in place, the ECs will have a ready fund that they can tap to quickly restore distribution lines and networks damaged by typhoons and other natural calamities,” Chair Devanadera said.  

Under the Electric Cooperatives Resiliency Act, the ECs are assured of the availability of funds in times of fortuitous event or force majeure.  Accordingly, thirty percent (30%) of the allotted fund will be earmarked for the ECs’ disaster prevention, disaster preparedness and disaster mitigation measures.  Meanwhile, sixty percent (60%) of the fund will be used for the restoration or rehabilitation of the ECs’ damaged infrastructures by fortuitous event or force majeure.  Lastly, ten percent (10%) will be reserved for the repayment of outstanding obligations incurred by the ECs in financing the rehabilitation of their damaged infrastructures.

The ECERF, which will have an initial funding of PhP750 Million, will be managed by the National Electrification Administration (NEA).  The initial funding will be drawn from the National Disaster Risk Reduction and Management Council’s (NDRRMC) funds.  The NEA is tasked to formulate the implementing policies in consultation with the NDRRMC to ensure the law’s effective implementation.  

“This positive development will benefit the electric cooperatives and their member-consumers in terms of faster restoration of electricity and power facilities damaged by natural calamities,” ERC Chair Devanadera stated.  


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