Presentation on theme: "RURAL ELECTRIFICATION PROGRAM"— Presentation transcript:
1 RURAL ELECTRIFICATION PROGRAM 36 YearsRURAL ELECTRIFICATION PROGRAM5 October 2005Honesty, Efficiency and Solidarity Auditorium
2 REPUBLIC ACT 6038 (1969)Created NEA as the Primary Agency to implement the RURAL ELECTRIFICATION PROGRAM (REP)Provided for the organization & supervision by NEA of ELECTRIC COOPERATIVES (ECs) nationwide
3 Characteristics of Rural Electrification During the Early Years of Implementation Electrification was made possible by using small generating units of 30 to 60 kwService was only available in municipal centersLow voltage of electricity suitable only for lightingService was available for 3 to 6 hours usually in the evening
4 Davao Light & Power Co., Inc. STATUS OF RE PROGRAMJune 1969Cabanatuan Elect CorpSapang Palay RuralElectric ServiceCooperativeDagupan Elect CorpNorthern Nueva EcijaElectric Service CooperativeMERALCOInfanta Light & PowerService CooperativePorac Electric ServiceAEC & SFELAPCOCabatuan CommunityElectric Coop Assoc,Inc.Six Mexican BarriosElectric ServiceCooperativePECOVECO & MECOLubang Electric Service CooperativeCEPALCOVictorias Electric Service CooperativeBOHOL Provincial Elect SystemILPICOLIGHTMisamis Oriental Rural Electric ServiceDavao Light & Power Co., Inc.Source:EA Annual ReportSouthern Farmers Cooperative
5 PRESIDENTIAL DECREE 269 (1973) TRANSFORMED NEA INTO A GOVERNMENT CORPORATION AND DECLARING AS A NATIONAL POLICY OBJECTIVE THE TOTAL ELECTRIFICATION OF THE PHILIPPINES
7 OVER-ALL STATUS THEN AND NOW FIRST YEAR (1969)Status of EnergizationMunicipalities/Cities (52%)Potential 1,422EnergizedConnections (19%)Potential MEnergized M2005Status of EnergizationMunicipalities/Cities(100% energized) 1,609BarangaysCoverage 41,930Energized 38,978% Energization %ConnectionsPotential MServed M% Energization %Population Served M(Approximate)
8 PERFORMANCE BY UTILITY As of July 31, 2005ElectricMunicipalities/CitiesBarangaysConnectionsDistributionUtilitiesCoverageEnergized%CoverageEnergized%PotentialServed%Electric Cooperatives1,4511,45110036,00333,1659311,141,2006,939,95362MERALCO1111111004,3174,243984,416,0004,173,50895PIOUs/LGUs/Others47471001,6101,570981,486,0001,165,36378TOTAL PHILIPPINES1,6091,60910041,93038,9789317,043,20012,278,82472
9 STATUS OF BARANGAY ENERGIZATION As of July 2005 PERCENT ENERGIZED BASCOPERCENT ENERGIZED% ECs% ECs% ECs% ECs59 & Below ECsPIOUs / LGUs - 26
12 Note: Savings due to the restructuring amounts to approximately P161 M or 49% reduction in operating expenditures.
13 SEC. 58. Additional Mandate of the National Electrification (NEA) SEC.58. Additional Mandate of the National Electrification (NEA). – NEA shall develop and implement programs:To prepare electric cooperatives in operating and competing under the deregulated electricity market within five (5) years from the effectivity of this Act, specifically in an environment of open access and retail wheeling;To strengthen the technical capability and financial viability of rural electric cooperatives; andTo review and upgrade regulatory policies with a view to enhancing the viability of rural electric cooperatives as electric utilities.
14 Short Term Credit Facility aims to finance the ECs’ monthly shortfall on the settlement of power accounts with the NAPOCOR and TRANSCO. Funds allocated for this purpose amounts to P300M.Equity Financing Scheme was introduced to assist ECs in complying with the Distribution and Grid Code. NEA will finance the actual equity requirement or up to 20% of the total purchase price of the distribution equipment being procured through financing but not to exceed P8M. The initial funding allocation is P100M.FINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
15 Single Digit System Loss Program for the reduction of the national system loss average by at least 1% annually starting 2004 to attain the single digit level before The amount of P300M was allocated for this program.Enhancement of ECs’ Capital Resources through the adoption of a policy allowing ECs to secure loans (collateral-sharing) outside of NEA to finance their upgrading and rehabilitation projects.FINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
16 Credit Facility for EC Power Accounts with GENCOs and Market Operator (WESM) provides Stand-By Credit Facility for ECs which fail to meet the credit worthiness indicators set in their contracts with the GENCOs, and/or to avoid suspension in the WESM and the claim of the security provided to the Market Operator due to default in payment. Initial funding allocation is P500 M.Credit Facility for the Acquisition of Sub-transmission Facilites (69 kv lines) from TRANSCO aims to finance the ECs’ equity requirement of up to 20% of the total acquisition cost of the NAPOCOR/TRANSCO sub-transmission facilities. initial funding allocation of P100M was established.FINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
17 SYSTEM LOSS As of June 2005 SINGLE DIGIT - 8 ECs 10% to 14% - 42 ECs BASCOSINGLE DIGIT ECs10% to 14% ECsABOVE 20% ECs15% to 20% ECsNO DATA AVAILABLE EC24
18 Macro Engineering Assistance Program (MEAP) was designed to ensure the attainment of single digit systems loss before 2010, improve the level of power reliability and ensure the ECs’ compliance to the Grid and Distribution Codes.Systems Loss Segregation Program complements the MEAP which aims to guide the ECs quantify and segregate the technical, non-technical and administrative loss. Through this, the ECs shall be able to determine which priority activities should be implemented immediately to maximize beneficial effects.FINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
19 Management Academy for Rural Electrification was established primarily to serve as learning venue for the best practices of successful ECs.People Development Academy (Toledo City) teaches leadership and corporate values to EC leaders and employees. To date, a total of 1,408 pax have undergone trainings in 12 multi-disciplines seminars.Integrated Strategic Planning Seminar-Workshops were conducted for 114 ECs to assist them in formulating their 5-year operational plans ( ). An in-house-developed computerized model (ICPM) was designed to harmonize the data for all plans currently existing. It also serves as the basis for the Distribution Development Plans ofFINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
20 A total of 121 pax from 41 ECs underwent various WESM-related trainings including a WESM Operations Seminar with PEMC Officials as resource persons were attended by ALL Luzon Main Grid-Connected ECsCompetency Training and Certificate Programs on Electric Distribution System Power Engineering through a MOA between NEA and UP Diliman. To date, a total of 46 participants from 35 ECs have been able to complete the program.FINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
21 Management Academy for Rural Electrification was established primarily to serve as learning venue for the best practices of successful ECs.People Development Academy (Toledo City) teaches leadership and corporate values to EC leaders and employees. To date, a total of 1,408 pax have undergone trainings in 12 multi-disciplines seminars.Integrated Strategic Planning Seminar-Workshops were conducted for 114 ECs to assist them in formulating their 5-year operational plans ( ). An in-house-developed computerized model (ICPM) was designed to harmonize the data for all plans currently existing. It also serves as the basis for the Distribution Development Plans ofFINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
22 A total of 121 pax from 41 ECs underwent various WESM-related trainings including a WESM Operations Seminar with PEMC Officials as resource persons were attended by ALL Luzon Main Grid-Connected ECsCompetency Training and Certificate Programs on Electric Distribution System Power Engineering through a MOA between NEA and UP Diliman. To date, a total of 46 participants from 35 ECs have been able to complete the program.FINANCIAL PROGRAMSTECHNICAL PROGRAMSINSTITUTIONAL PROGRAMS
23 Medium-Term Development Plan (2005-2009) ICPM SummaryCorplan, Engineering, Accounts Management & Guarantee, Finance, Institutional Development, Management Assistance
24 ICPM INST’L B S E P LTDP LF - BEP factors to consider: GCP/PIP/ REP WESMOPEN ACCESSDIST. CODEGRID CODEERC COMPLIANCESMAGNA CARTATIME-OF-USEE.O. 119DEMAND & SUPPLYINST’LICPMOUTPUTSDDPINSTITUTIONAL PROGRAMSFINANCIAL PROJECTIONS2005 WORKPLANBSEPLTDPLFGCP/PIP/REPUpdated, Harmonized, Distinctive
25 BARANGAYS TO BE ENERGIZED (2005 – 2008)EC with most number of unenergized barangays:LASURECO - 363Waived: 7783,068 BARANGAYS2005 –2006 –
26 NUMBER OF SITIOS TO BE ENERGIZED 2005 = 8212006 = 5222007 = 4402008 = 3352009 = 305EC with most number of identified Sitios for energization:MARELCO - 123Sitios Electrified from Jan.03-June 05: 2,559
27 CONSUMER CONNECTIONS Year No. 2005 375,575 2006 367,217 2007 391,969 2008413,5182009502,337Total2,050,616EC with most number of consumers to be connected:NEW – BENECO (11,035)ADD-ONS – ALECO (64,819)
29 SUBSTATION REQUIREMENT (Rehab/Upgrading)TMVA2001391009080TOTAL No. of Units5 MVA – 3510 MVA – 3020 MVA – 3OTHERS * – 1EC with greatest S/S capacity for Rehab:ISELCO II – 120 MVA* 2.5, 3.75, 15, 30 MVA
30 Distribution Transformers 10 KVA – 4, KVA – 6,32015 KVA – 6, KVA –25 KVA – 12, KVA – 67437.5 KVA – 3, KVA – 267TOTAL NO. OF UNITS: 35,359EC with biggest number of dx transformer requirement:CAGELCO II – 1,365
31 Kilowatt Hour Meters 3 Phase – 5,921 1 Phase – 1,556,427 TOTAL NO. OF UNITS: 1,562,348EC with greatest number of kwh-mtr requirement:AKELCO – 120,075
32 Distribution Facilities Kilometers of LinesEXPANSIONREHAB/REVAMPDC – DC –3Ø – Ø –2Ø – Ø –1Ø – 5, Ø –UB – 4, UB – 1,OS – 1, OS –EC with longest dx lines for expansion:ZANECO – ckt.kms.EC with longest dx lines for rehab/revamp:ZAMECO II – ckt.kms.
33 SUBTRANSMISSION FACILITIES and VOLTAGES other than 13.2 kvEXPANSIONREHABCENECO is the only EC with subtransmission line for rehab.EC with longest subtransmission line for expansion:COTELCO – kms.
34 GRAND TOTAL: 193,803 POLES 25’ – 19,838 30’ – 62,918 35’ – 56,030 25’ – 19,83830’ – 62,91835’ – 56,03040’ – 26,10545’ – 13,125OTHERS*– 15,787GRAND TOTAL: 193,803* Includes concrete, steel and above footersEC with most number of Pole Requirements:ISECO – 12,750
35 FUNDING REQUIREMENT (P ‘000) – 8,338,532– 7,056,259– 6,400,667– 6,039,058– 5,982,477GRAND TOTAL: 33,816,993EC with largest funding requirement:BATELEC II – 1,175,437
36 sources Operational Efficiency Subsidies and LoansRate AdjustmentsDOE’s Energy Regulations No. 1-94, as amended50% of P0.01 per kwh financial benefitsLocal Government Code of 1991(Chapter II, Sections 289 to 294)80% of the proceeds maybe used to construct distribution lines and lower the cost of electricityMissionary Electrification-Universal ChargeSubsidy to QTPs (alternative service providers)Government General Appropriations Act (GAA) for DOE,NEA/ECs and SPUG (if any)WB-GEF under DOE’s Rural Power ProjectAvailable for household and community applications (US$ per Wp)
37 VOLUME OF BUSINESS Consumer Connections II. Energy Sales (MWH) 2004 20096,702,7898,753,40520049,546,390Annual Ave: 12,390,656Growth Rate = 23%Growth Rate = 23%III. Revenues (P)2004200947BAnnual Ave = 73BGrowth Rate = 36%
38 next steps… 100% Barangay Energization by CY 2008 Single Digit System Loss by CY 201090% Energization Rate for Residential Consumers by CY 2017
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