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ID 9105082030
March 03, 2023
CORPORATE PLANNING ADVISORY
TO ALL ELECTRIC COOPERATIVES (ECs)
ATTENTION: REGIONAL ASSOCIATIONS PRESIDENTS
SUBJECT Outputs of 2023 NEA Strategic Thinking Conference-Workshop

and 2023 Strategic Thinking with the ECs
May we provide you copies of the following documents:_
1. Outputs of the 2023 NEA Strategic Thinking Conference-Workshop conducted on

January 26-28, 2023 at Quest Plus Conference Center, Pampanga and;
2. Outputs of the 2023 Strategic Thinking with the ECs conducted on November 15-
16, 2022 at Edgardo R. Piamonte Auditorium, PENELCO, Balanga City, Bataan
These documents will be used as reference by both NEA and all ECs in formulating
solution-focused and effective strategies towards a stronger rural electrification program.
We thank the active participation of the EC representatives in contributing to the success

of these activities.
Offi
Corpora e anning Office
(02)8-929-1909
www.nea.gov.ph
Conference Objectives
 Assess NEA’s corporate goals and targets
 Create plans required by the current Administration
 Identify critical areas and urgent issues and
concerns of the ECs and the needed support from
NEA
 Establish new initiatives that will enhance
departmental outputs
Table of Contents
I. Program Flow
II. Policy Directions
III. Insights from Rural Electrification Partners
IV. NEA Sectoral Messages
V. Administrator’s Priority Agenda
VI. New Strategic Direction
VII. Mechanics of Breakaway Discussion
VIII. Group Outputs
IX. Administrator’s Inputs/Comments on the Group Presentations
X. Closing Remarks
XI. Annexes
a. NEA SWOT Analysis
b. Proposed Vision
c. Report of Accomplishments – RENAGMEC Power Corporation (As of Dec. 21, 2022)
PROGRAM FLOW
Day 1 – January 26, 2023
Time Activity
8:00 AM - 12:00 NN Travel Time to Venue
Lunch
2:00 PM Opening Formalities
Invocation/National Anthem/NEA Hymn & Credo
Acknowledgement of Participants
House Rules
Policy Directions – RE Program
DOE Secretary
Board of Administrators
NEA Administrator

Time Activity
(Continuation) Insights from Rural Electrification Partners
FRECOR 8
CEVECA
CLECA
AMRECO
Sectoral Message
Deputy Administrators
Administrator’s Priority Agenda & Sectoral Priorities
CPO Department Manager
7:00 PM Dinner & Fellowship Night
Time Activity
8:00 AM Charting of New Strategic Direction
NEA Vision/5-Point Agenda
Mechanics of Breakaway Group Discussion
Corporate Planning Office
Workshop (2023-2028 Plan)
Breakaway Group Discussion and Output Consolidation

Time Activity
8:00 AM Continuation of Breakaway Group Discussion
Result of Environment Scanning through SWOT Analysis
Presentation of Group Outputs
NEA Sectors
Synthesis
Way Forward
Departure
POLICY DIRECTIONS
Mario C. Marasigan
DOE Assistant Secretary
Looking at the different speaking points, electrification does

not pertain to household electrification only
Electrification
calls for better EC services to its customers
Look after the welfare of consumers based on the entire
electric power industry.
Aspire NEA to provide guidance and inspiration to our ECs
in attaining 100% electrification by 2030 based on the 2020
census
Use the Microgrid System Act in pursuing total electrification
by 2030
Mario C. Marasigan
DOE Assistant Secretary
Include NIHE, locally funded projects, and augmentation of funds as

part of the electrification activities
DUs can now own and operate energy storage systems to augment the
delivery of services to the consumers.
DOE is trying to streamline the CSP wherein the final approval will rest
on the ERC alone
The Green Energy Auction Program will increase the contribution of
renewable energy resources and availability of renewable energy
projects
DOE challenges NEA to accelerate the attainment of 100%
electrification by 2028 instead of 2030
Antonio Mariano C. Almeda
NEA Administrator
Streamline the policy direction within NEA and should be

anchored in the principle of good governance
The challenge for total electrification by 2028 was accepted
Things will be done in the simplest manner through the
application of the KISS principle (“Keep it simple, stupid”)
As part of NEA’s good housekeeping, hire and explore with
consultants regarding the Agency’s restructuring to eliminate
redundancies and form another department to reinforce
ADCOM and ECAD

NEA Administrator
HRAD to expedite the filling up of all the vacancies to address

insufficient number of NEA personnel
Ailing
and corrupt ECs will be open for privatization
NEA plays a very vital role in augmenting power rate hikes by
promoting embedded renewable power supply
NEA will handle the application of franchise renewal for ECs whose
franchise life will end within 5 years
INSIGHTS FROM
RURAL ELECTRIFICATION
PARTNERS
Joselito P. Yap
FRECOR-8 President
PHILRECA and FRECOR 8 is completely cooperating with

NEA
Virgilio C. Fortich, Jr.

CEVECA President
NEA and ECs has done a lot for people in terms of providing
a better quality of life and economic development through
electrification
We still have a lot of things to do together to achieve the
mandate and to plan out clear strategies needed for us to be
more relevant
With the practical and proactive leadership shown by the
incumbent NEA Administrator, we are headed into the right
direction and accomplish wonderful things together for our
MCOs
Virgilio C. Fortich, Jr.
CEVECA President
Inthese critical times, “technology is the key”. Through the

establishment of command center, decisions will be based on data.
Continue to invest/develop in the human capital by making it the most
important assets
Region 7 is all-out support with NEA and to the present leadership
Jose Raul A. Saniel

AMRECO President
The Administrator’s message will be cascaded to all

AMRECO ECs
The conference-workshop will lead us to think of the future
of the NEA and the ECs and their relevance to the society
and the people it serves
Come up with a single roadmap for the NEA and the ECs to
follow considering all angles and perspectives to be looked
into and analyzed
AMRECO will continue to be a strong partner of NEA in
capacitating Mindanao ECs
Jose Michael Edwin S. Amancio
ESAMELCO General Manager
Reported the accomplishments of RENAGMEC Power

Corporation as of December 21, 2022
NEA SECTORAL
MESSAGES
Rossan SJ. Rosero-Lee
LS Deputy Administrator
Limited number of NEA lawyers available due to their designations as

Project Supervisors (PS) to ECs
Align the direction of Legal Sector in complement with the ERC through
strong networking
Seek to further streamline or shorten the CAPEX application process
without sacrificing check and balance parameters
Solicit
leadership from EC Regional Associations for franchise renewal
and cascade its procedures
•There is a need to revisit the various NEA memoranda
TPS Republic of the Philippines

NATIONAL ELECTRIFICATION ADMINISTRATION
NEA, ECs and MCOs: Partners in Rural Electrification and Development
NEA Bldg., No. 57 NIA Road,

Government Center, Diliman,
Quezon City 1100 CORPORATE RESOURCES
www.nea.gov.ph
AND FINANCIAL SERVICES
(CRFS)
fb.me/OfficialNEA
@nea_ph
DIRECTIONS
" Energizing the Countryside, Electrifying the Future"

MAJOR PLANS AND ACTIVITIES
Restructuring/ Hiring and
Building
Reorganization Plan Promotion for
Improvement/
(GCG Memo Circular Vacant Plantilla
Maintenance
No. 2015-04) Positions
Good Procurement of Financial Stability

Housekeeping new service and Sustainability
vehicles
CORPORATE RESOURCES AND FINANCIAL SERVICES (CRFS)

❑ Restructuring/Reorganization Plan (GCG Memo Circular No. 2015-04)
❖ Board directive to (1) undergo reorganization and providing its
governance structure (2) Constitution of a Change Management
Committee (CMT)
❖ Acquire 3rd party to assess the current state of the organization (CRR
Management Systems Consultancy)
❑ Good Housekeeping
❖ 5-S (Procurement of steel filing cabinet, open shelves – steel storage
rack and lever arch folder)
❖ Disposal of Unserviceable Properties/Assets
 Inventory (GSD, Accounting Division and Inventory Committee)
 Appraisal (Appraisal Committee)
 Public bidding (BAC for disposal)
 Building Improvement/Maintenance (2023 budget for repair and
maintenance – Php12M)
 Upgrading of 14 lobby restrooms
 Painting of NEA building (interior)
❑ Procurement of new service vehicles (2 pick-up, 3 CUV, 1 passenger
van & 2 motorcycles)
 Preparation/updating of TOR by TWG
❑ Hiring and Promotion for Vacant Plantilla Positions
 287 filled up plantilla positions
 360 plantilla positions with budget for 2023
 72 plantilla positions in process

❑ Financial Stability and Sustainability
 Maximization of Revenues
 Interest on loan and service fee (EAO) for subsidy releases to ECs
 Advance payment of ECs loan amortization
 Increase loans to EC (2023 budget – Php1B)
 Optimization of Resources
 Facilitate release of subsidy funds of Php2.4B
 Increase liquidation rate (review of the project cycle)
 Team Building (Departmental)
 Grateful leadership
 Minimization of Expenses
 Observance of austerity measures (AO 103-s-2004)
 Compliance to the Government Energy Management Program (GEMP)
• Energy Conservation (electricity and fuel)
Federico P. Villar, Jr.
ED Department Manager
Technical Services accepts the challenge of 100% electrification by

2028, taking the opportunity of Microgrid Act
Fast-track and complete the liquidation of subsidy projects
•DRRMD to have a more proactive response before, during and after
calamities
Technical
Services Sector will support the realization of the NEA
Command Center
Strengthen the resiliency of our distribution utilities through the Build
Back Better program
Federico P. Villar, Jr.

ED Department Manager
Technical Services must be complemented by personnel to realize the

Administrator’s directions and commitments
Adoption of the SMART Grid Policy through the automation of ECs’
distribution system such as SCADA system
Ensure the satisfaction of our customers and lessen the interruptions
Separate and resolve the non-technical losses to decrease rates
CapacitateNEA and EC engineers in the estimation, testing and
commissioning of SCADA system
Ernesto O. Silvano, Jr.
ECMS Deputy Administrator
Review the relevance of NEA policies and streamline some existing

processes to be more efficient
Seek initiatives or plans that would support the pronouncements of the
Administration
ADMINISTRATOR’S
PRIORITY AGENDA &
NEW STRATEGIC
DIRECTION
ADMINISTRATOR’S
PRIORITY AGENDA
Presidential Presidential
Decree 269 (1973) Decree 1645 (1979)
Converted NEA into Broadened
a government NEA’s lending and
corporation to regulatory power
organize & over the electric
develop electric
cooperatives
MANDATE cooperatives
ENABLING
Total
electrification
LAWS Republic
of the Republic
Act 9136 (2001) country Act 10531 (2013)
Strengthened NEA to
Prepared ECs to
pursue its mandate for
operate & compete in sustainable
a deregulated development in the
environment & to rural areas & to
strengthen technical introduce structural
capability & financial reforms for both the
viability NEA & ECs
NEA CORE COMPETENCIES
FINANCIAL INSTITUTIONAL TECHNICAL LEGAL/REGULATORY

 System Planning and Analysis  Fit and Proper Rule
 Loan and Subsidy  Organizational
Management Development  Power Development and  Ailing or Critically Challenged
Utilization ECs Restructuring
 Internally Generated Interventions
 Project Supervision and  Performance Standards
Fund Management  Training and Distribution & Sub-station Setting, Monitoring &
 Fund Sourcing Development Management Evaluation
 Consumer Education  Compliance to Technical  Comprehensive Audit

 Guarantee EC Standards and Disaster  Quasi- legislative and Quasi-
Transactions and Protection
Resiliency judicial Function
 Electrification Program  Policy Advisories and
Implementation and Guidelines
Renewable Energy
 Penalties for Non-Compliance
Development
and Case Adjudication
Policy Directions:
President BBM’s 8-Point
Socioeconomic Agenda
“A key sector in our

transformation plans is that of
energy.”
– 2022 PBBM SONA

Requirement for growth
Availability of cheap, reliable energy

Attract investors/Increased
employment
Energy Agenda based on SONA “Ease of doing business”
Increase the level of energy

production
Reliable power supply
Expand the present power supply
Build new power plant/renewable

energy
Build new power plant/ “renewable

Hydropower
energy”
Geothermal Power
Energy Agenda based on SONA
Solar Power
Wind Power
“I believe that it is time also to re-
examine our strategy towards
building nuclear power plants in
the Philippines.”
– 2022 PBBM SONA
“We must expand the network of our transmission

lines while examining schemes to improve the
operation of our electrical cooperatives. All this in
aid of reducing energy cost especially but not
limited to households. ”
– 2022 PBBM SONA

“Amendments to the Electric
Power Industry Reform Act or
EPIRA (Rep. Act No. 9136)”
– 2022 PBBM SONA
NINE (9) ADMINISTRATOR’S PRIORITIES
1. Transition from 7-Point Agenda to 5-Point Agenda and Revision of NEA’s Vision
2. Establishment of NEA Command Center
(Special Projects Office)
3. Restructuring of NEA/Augmentation of NEA
Personnel/Review of OPASS Organizational
Alignment
4. Enhancement of EC Overall Performance Assessment
Categorization
NINE (9) ADMINISTRATOR’S PRIORITIES

5. Review of EC-BODs’ Qualifications
6. Strengthen the Controls on the
Subsidy Programs
7. Release of NEA’s Capitalization
8. Strengthening of EC Audit
9. Upgrade of NEA’s Classification
based on CPCS
NEA Plans and Programs
Basis
1. Administrator’s Priority Agenda
2. Alignment of Plans and Programs on PBBM’s 8 Point
Socio Economic Agenda
3. Outputs of the 2022 Consultative Conference with EC
Officials last May 19 – 20 held in PICC
4. Energy Sector Transition Report submitted to the
DOE
National State Policy
Total Electrification
on an Area Coverage
of the Country
Basis
Presidential
Republic Act
Decree No.
No. 10531
269
. . . to spur social and . . . to promote the sustainable
economic development in development in the rural areas
the countryside through rural electrification
RURAL ELECTRIFICATION
 Total Electrification
 Fund Sourcing
 Monitoring of EC’s Efficient and Reliable Power
Supply
 Competitive Selection Process
 Review of EC Power Supply Agreement
 Private Sector Participation (JV/QTP)
Rural Electrification is about
social and economic Thus, the Rural
development in the Electrification is not just
countryside about construction of
lines reaching the last
household in the ECs
franchise area. It’s about
social and economic
development in the
countryside; it’s about
The RURAL ELECTRIFICATION PROGRAM
is about
sustainable rural
SUSTAINABLE RURAL DEVELOPMENT development through
THROUGH RURAL ELECTRIFICATION rural electrification.
Status of Consumer Connections

As of November 30, 2022
Additional
Served to Consumers
Islands Potential* % Unserved Total Served %
Date in Areas with
100% Level
Luzon 6,229,576 6,008,016 96 221,560 1,161,902 7,169,918 115
Visayas 3,687,915 3,502,459 95 185,456 565,700 4,068,159 110
Mindanao 4,428,401 3,666,448 83 761,953 445,178 4,111,626 93
Total 14,345,892 13,176,923 92 1,168,969 2,172,780 15,349,703 106
* Based on 2015 Census

** Consumers in excess of 100% are considered outgrowth from 2015 Census
As of November 30, 2022
Level of No. of
%
Energization ECs
100 – 90% 99 82
89 – 70% 14 12
69 – 51% 4 3
50% & Below 4 3
Total 121 100
Matatag, Maginhawa, at Panatag

na Buhay para sa Lahat
By 2040, Filipinos enjoy strong family and community ties, a comfortable
lifestyle, and a secure future.
National Economic and Development Authority

EC VIABILITY AND COMPETITIVENESS
 Development of EC-owned and
Renewable Energy Generation Facilities

 Renewal of EC Franchise Service
 Reasonable Power Rate  System Reliability and Efficiency
 Collection Efficiency  Disaster Mitigation
 Provisions of Loans  Risk/Crisis Management
 Exemption from Tax Payment
2023 Corporate and Sectoral

Priority Programs
VISION A dynamic and responsive NEA that is a vanguard of sustainable rural development in partnership
with globally-competitive Electric Cooperatives and empowered Electricity Consumers
NATIONAL OPERATIONAL EFFICIENCY STRATEGIC ALLIANCE

ELECTRIFICATION
To empower member-consumers as
IMPACT
SOCIAL
ADMINISTRATION responsible owners of the Electric
Cooperatives
MANDATED MISSION
 To promote the sustainable To ensure that the Electric
Cooperatives provide accessible,
STAKEHOLDERS
development in the rural areas through
rural electrification To generate peak performance among adequate, quality
the Electric Cooperatives to ensure and reliable service
 To empower and strengthen the NEA to competitiveness
pursue the electrification program and To enhance networking to gain
bring electricity, through the Electric support for program implementation
Cooperatives as its implementing arm,
to the countryside even in missionary
FINANCE
To sustain the organization’s viability

or economically unviable areas and ensure accountability and
transparency
 To empower and enable Electric
Cooperatives to cope with the changes
INTERNAL
PROCESS
brought about by the restructuring of To upgrade organizational

the electric power industry infrastructures
CORE VALUES
Absolute Honesty
& GROWTH
LEARNING
To enhance the human resources’

Maximum Efficiency
knowledge, skills and behavioral
Total Solidarity competencies
2023 PRIORITY PROJECTS -

CORPORATE
 Energization of 1,085 sitios
 Connection of 500,000 consumers
 Facilitation of PhP 700M loans to ECs
 Attainment of 97.57% collection efficiency
 Certification/Competency Programs for 1,450 EC officials and
employees
 Maintenance of ISO 9001:2015 Recertification
LEGAL SERVICES SECTOR
 ECs JVA Guidelines for Embedded Generating Facility
 Formulation of position paper to support and re-enforce any
proposed bill that will be espoused or sponsored by the
Legislators pertaining to reliable/continuous Power Supply in
the rural/coverage areas of the Electric Cooperatives
 Preparation of Guidelines in the Conduct of Competitive
Selection Process (CSP) for the entrance to Power Supply
Contracting

LEGAL SERVICES SECTOR
 Review of Power Supply Agreement through EVOSS and the
Power Supply Procurement Plan
 Review of the Harmonization of the Policy concerning NEA
and CDA registered electric cooperatives
 Digitization and Safekeeping of Permanent Records
TECHNICAL SERVICES SECTOR
 Relocation of 56,773 poles
 Evaluation of the submitted 2022 ECs’ Vulnerability Risk
Assessment (VRA), Resiliency Compliance Plan (RCP),
Mitigation Plan (MP) and Emergency Response Plan (ERP)
 Development of the National EC Emergency and Resiliency
Plan (NECERP)
 Technical Evaluation for SEP and BLEP and facilitation of the
Renewable Energy Embedded Generation Facility for ECs
2023 PRIORITY PROJECTS - CORPORATE

RESOURCES AND FINANCIAL SERVICES SECTOR
 Request for the release of PhP 20B capitalization fund of NEA
 Preparation of the 2024 Corporate Operating Budget
 Liquidation of PhP 1.5B* worth of completed subsidy funded
projects
 NEA Restructuring
 Enhancement of NEA facilities
*Tentative Figure
2023 PRIORITY PROJECTS – MANAGEMENT
CONSULTATIVE SERVICES SECTOR
 Review and amendment of existing policies and guidelines
 Issues and concerns of under-performing and ailing ECs
 For Institutional Program for ECs:
1. Formulation of Operation Improvement Plan (OIP)
2. EC Organizational Restructuring
3. Conduct of District Election/AGMA
2023 PRIORITY PROJECTS – MANAGEMENT

CONSULTATIVE SERVICES SECTOR
 4. Human Resources Policies
 5. Retirement Program
 6. Code of Ethics and Discipline
 7. Hiring & Processing for EC General Manager
 8. Organization and Empowerment of Member Consumer-
Owners (MCO’s) to ensure improved EC and MCOs linkages
OFFICE OF THE ADMINISTRATOR SECTOR
 Submission of the 2023 National Electric Cooperatives
Distribution Development Plan to DOE
 Submission of accomplishments in relation to EO 156, “Instituting
Measures to Ensure Consistent and Reliable Electricity Service in
Adequately Served Areas, Improve Performance of Inefficient
Distribution Utilities and Achieve Total Electrification of the
Country”
 Help in the facilitation of IRR together with DOE on RA 11646 or
the “Micro-Grid System Act”
Fully Complied with all Good Governance Conditions

GCG-Validated Rating of 2020
Name of GOCC Acronym
Performance Scorecard
1. National Electrification Administration NEA 100%
2. Philippine National Oil Company PNOC 98.41%
3. National Transmission Corporation TRANSCO 97.02%
4. National Power Corporation NPC 96.82%
5. Power Sector Assets and Liabilities Management Corporation PSALM 94.26%
6. PNOC Exploration Corporation PNOC-EC 81.67%
7. Philippine Mining Development Corporation PMDC 72.55%
7. PNOC Renewable Corporation PNOC-RC 60.91%
NEA Performance Scorecard
2021 2022 *
95.48% 94.54%
* CPO Validation
2022 NEA PERFORMANCE SCORECARD ACCOMPLISHMENT REPORT
(As of December 31, 2022)
Strategic Measures Weight Annual Target Actual Rating
Stakeholders Perspective
Strategic Objective: To ensure that the Electric Cooperatives provide accessible, adequate, quality and reliable service
1. Number of Completed and Energized Sitio Projects 20% 1,085 950 17.51%
2. Number of Consumers Connected 15% 400,000 499,117* 15.00%
Strategic Objective: To generate peak performance among Electric Cooperatives to ensure competitiveness
3. Number of EC Officials and Employees Graduated from

5% 1,320 2,509 5.00%
Certification/Competency Programs
Strategic Objective: To enhance networking to gain support for program implementation
4. Percentage of Satisfied Customers 5% 90 98% 5.00%

Financial Perspective
Strategic Objective: To sustain the organization’s viability and ensure accountability and transparency
5. Amount of Loans Facilitated (PhP) 10% 700 M 762.46 M 10.00%
6. High Collection Efficiency Maintained (%) 10% 98.23% 98.74% 10.00%

*Consumers connected from January 1, 2022 to November 30, 2022

7. Budget Utilization Rate (%)
a. Subsidy Utilization Rate - Obligation 3% 90% 56% 1.87%
b. Subsidy Utilization Rate - Disbursement 3% 90% 35% 1.17%
c. Corporate Funds Utilization Rate (CO & MOOE) - Disbursement 4% 90% 123% 4.00%
Internal Process Perspective
Strategic Objective: To upgrade organizational infrastructures

75% of projects
8. Percentage of Sitio Electrification Projects Funded that are Fully
6% done as of end of 78.23% 6.00%
Compliant with NEA Standards and Specifications
September 2022
9. Percentage of Sitios Completed and Energized Within 180 Calendar
6% 75% 78.63% 6%
Days From Release of Funds to ECs
10. Percentage of Regular Loans Released Within Prescribed Processing 100% (released
3% 100% 3.00%
Periods within 24 days)
Learning and Growth Perspective
Strategic Objective: To enhance human resources’ knowledge, skills and behavioral competencies
Surveillance Audit Surveillance
11. Compliance to Quality Standards 5% 5.00%
Passed Audit Passed
Year Level
2021 77.77%
Increase from 2021
12. Percentage of employees with required competencies met 5% 5.00%
Competency Level 2022 83.10%
Increase 5.33%
TOTAL RATING: 94.54%

NEW STRATEGIC
DIRECTION
Background
The change of National Electrification Administration’s (NEA)
leadership brought about by the change in government administration
provides an opportunity to chart a new strategic direction in the
realization of the Agency’s mandate.
As such, the 2023 NEA Strategic Thinking Conference-Workshop is

set to formulate solution-focused and effective strategies and action
plans necessary to address the requirements of the changing
environment and to satisfy the heightened expectations of the
electricity consumers towards nation building.
THEME
“Developing Mechanisms Towards a

Stronger Future”
NEA Vision: A dynamic and responsive NEA
that is a vanguard of sustainable rural
development in partnership with globally -
competitive Electric Cooperatives and
empowered Electricity Consumers
The Vision Statement focuses on the
future; it is a source of inspiration and
motivation. Often it describes not just
the future of the organization, but the
future of the industry or society in
which the organization hopes to effect
change. Revisit and Revise
 It should be short
 It needs to be specific
 Use present tense
 Keep it simple
 It should be ambitious enough
 Align with our core values
Sample: “To bring inspiration and innovation to

every athlete in the world.”
5-POINT AGENDA
Agenda 1 – promote inclusive development through
rural electrification
 Total Electrification – SEP/BLEP/Renewable/Micro-grid
 Consumer Connections and USE Database
 Fund Sourcing
 Efficient and reliable power supply
 Competitive Selection Process or CSP
 Review of Power Supply Agreement
 Private Sector Participation (JV/QTP)
5-POINT AGENDA
Agenda 2 - Intensify NEA and
EC Capacity Building
 Seminars and training for NEA & ECs

 Integrated Training Programs and Accreditation of Training Service
Providers
 Proof of concept on Build Back Better and Regional
Staging Sites/Hubs
 NEA-BIT Sustainability
5-POINT AGENDA
Agenda 3 - Empower Electric Consumers
 Present status of MSEAC

 Enhancement of the Agency’s Communication and 8888 Hotline
 Creation of livelihood for MCOs
 EC Corporate Social Responsibility (CSR)
 Ensure improved EC and MCOs
linkages as a Regulator
5-POINT AGENDA
Agenda 4 - Enhance Corporate Governance
 Provide Loans through Lending & Guarantee Program

 Review and amendment of existing policies and guidelines
 Issues and concerns of under-performing and ailing ECs
 Formulation of Business Continuity Plan (BCP)
and Public Service Continuity Plan (PSCP)
5-POINT AGENDA
Agenda 5 - Ensure Cognizance of
Legislative Agenda
 Release of additional NEA Capitalization (P20B)

 Lack of funds for EC Emergency and Resiliency Fund
 Security of Power Supply
 Limited Funds to Accelerate/Complete the Rural
Electrification Program
 Outdated technical specifications and
standards of 13.2 KV Distribution Line
Infrastructure
5-POINT AGENDA
Agenda 5 - Ensure Cognizance of
Legislative Agenda
 Task Force on Pole relocation
 Longoverdue accounts with PSALM and NPC – SPUG of
Underperforming ECs – those in watch list or financially and
technically distressed ECs
 Delayin the Approval by the Regulatory Bodies necessary to
respond to power supply, rate structure among others
 Proposed Amendments to EPIRA
MECHANICS OF
BREAKAWAY DISCUSSION
Mechanics of Breakaway Discussion
Allparticipants will be grouped per sector (OA, CRFS, ECMS, TS, and
LS). All groups must form their respective Group Names
For the 1st hour of the breakaway session, the groups will craft/develop
NEA’s SWOT Analysis using Template 1
The groups will propose a NEA Vision Statement based on their
respective SWOT Analyses
The groups shall use the Templates 2 and 3 in identifying their outputs
based on the Administrator’s Nine (9) Priorities and NEA 5-Point
Agenda
During the breakaway session, the groups shall bring into play the “Six
Thinking Hats” concept. This will be explained in a separate video
presentation
Mechanics of Breakaway Discussion

Each group will have their assigned secretariat from the Corporate
Planning Office as follows:
Group Assigned Staff
OA Lester Jade Lindain & Maritess Martinez
CRFS Jonnalyn Marco
ECMS Aejay Almanzor
TS James Panado
LS Allenace Jakosalem & Girrard Yumul
Overall Allan Jeffrey De Guzman
Group Presentations
The consolidated group outputs shall be presented by the Deputy
Administrators for a maximum allotted time of 30 minutes. For the OA
Sector, reports will be presented by their respective Department
Managers/Officers-in-Charge
Presentations are encouraged to apply the KISS Principle:
 Keep it short and simple
 Keep it simple and straightforward
 Keep it simple, stupid
There shall be a question and answer portion after the end of every
presentation
GROUP OUTPUTS
TECHNICAL SERVICES
SECTOR
NINE (9)
ADMINISTRATOR’S
PRIORITIES
Target
Lead and
Short Perceived Resources and
No. Initiatives Long Term Mitigation Plans Support
Term Risk/Challenges Support Required
Unit
2023 2024 2025 2026 2027 2028
(2) Preparation Seek consultancy

Dedicated unit office
Technical and personnel in-
ESTABLISHMENT OF
of Proof of
1
Concept
√ services from Industry
capabilities charge of the
(POC) Experts
NEA COMMAND preparation of POC
CENTER - Timely approval Political linkages of the

Creation of Special
Bids and Awards
Procurement from DICT current administration
2
of Resources
√ √ Committee (SBAC) and
- Insufficient fund thru congressional
Technical Working ITCSD
(20M) intiatives
(SPECIAL PROJECTS Group (TWG) and
ED
OFFICE) Availability of the DRRMD
TEREDD
NEA Command
Project Transfer of knowledge HRAD
Center's requirement Project Monitoring
3 Implementati √ √ √ during and after the
on such as NEA & ECs Team
implementation
connectivity, data
and its facilities.
Hiring of personnel
Operation &
Manpower Incorporate staffing Fund source and
4 Maintenance √ √ √ √
Sustainability Compliment requirement on the NEA proper training
Restructuring Plan
Target
Lead and
Short Perceived Resources and
Term Risk/Challenges Support Required
Unit
2023 2024 2025 2026 2027 2028
(4) To harmonize with

ERC on System Loss
Some ECs do not
Capacitate ECs on
Manpower for
Consultative Sessions
1 x segregate system ED
ENHANCEMENT
segregation of system loss
Cap loss.
Software
OF EC’S Inclusion of
OVERALL
Reliability
Needs harmonization ED, ITCSD
Indices for:
with ERC for the - for
1. Schedule
PERFORMANCE
prescribe caps revising
2. Major storm
Coordinate with ERC to report
2 3. Generation x
review and establish caps
ASSESSMENT
4. Transmission
• Show caused ED, Legal -
order on reliability for working
NOTE:
non-compliant with ERC
SAIFI = 12
SAIDI = 913 minutes
Inclusion of Issue a memorandum to

Safety Not included in the submit the copy of
3 Compliance x reportorial Workplace Accident and ED
(RA 11058 –OSH requirement Incident Report (WAIR) as
Law) required by DOLE
Inclusion of Power
4 x None *None None ED, RAO
Supply sufficiency
(4) Inclusion of
5 Substation Load x None *None None
ED, ITCSD -
for revising
ENHANCEMENT condition report
OF EC’S
OVERALL Inclusion of power
quality
PERFORMANCE 6 Low Voltage below x Reporting errors
Memorandum to ECs
reiterating the None
ED, ITCSD -
for revising
ASSESSMENT 90%
Over Voltage above
prescribed formula report
110%
Increase from ED,

Reduce points from Discuss with NEA KPS
7 curremt 20 points to x None NEA KPS
other KPS parameters Committee
30 points. Committee
(6)
STRENGTHEN THE CONTROLS ON THE IMPLEMENTATION OF
THE SUBSIDY PROGRAMS
Initiatives Target Perceived Mitigation Plans Resources and Lead and
Short Long Term Risk/Challenges Support Support
Term Required Unit
2023 2024 2025 2026 2027 2028
Create mechanism for the - Delayed liquidation
selection of EC beneficiaries for of ECs
Strategized Total Electrification - Less Absorptive - Coordination of NEA,
Program (STEP), as follows: capacity ECs, LGU, congress, etc. REPPDD
x - Disrupts the project - Declare subsidy - Manpower TEREDD
1. Status of liquidation implementation with balance as savings to ASD
2. Level of energization the inclusion of fund other projects
3. Poverty incident congressional
4. Peace and order initiative
(8)
STRENGTHENING OF RENEWABLE ENERGY DEVELOPMENT
OFFICE
Target
Resources
Short Perceived Lead and
No. Initiatives Long Term Mitigation Plans and Support
Term Risk/Challenges Support Unit
Required
2023 2024 2025 2026 2027 2028
Increase networking for

Capacity building through
1 √ Disapprove grant multiple possible grant
Grant
opportunities
Capacity building through

Lack of government
2 partnership with other √ Lobby for subsidy
subsidy
government agency
Budget,
Capacity building by Pursue initiatives consultant
3 √ Disapprove proposal TEREDD
hiring consultant 1 and 2 services,
Upgrade computers and Disapprove budget manpower
4 √ √ Utilize existing equipment
laptops and late acquisition
Procure software for
Disapprove budget
5 design and simulation of √ consult experts
for the software
renewable energy projects
Augments REDD
6 √ √ Disapprove proposal Utilize existing personnel
personnel
(10)
UPDATING OF NEA EQUIPMENT AND MATERIALS
PRICE INDEX
Target
Resources and
Short Perceived Lead and
Term Risk/Challenges Support Unit
Required
2023 2024 2025 2026 2027 2028
To issue policy for

inclusion in the
Consultation with Electric
Not all EC submits reportorial requirement Budget for the
1 Cooperative to determine latest
latest prices as part of the EC consultation
price of Equipment and Materials
Performance
ED
Assessment
DRRMD
TEREDD
a. Consultation with manufacturer x
b. Upgrade list of Equipment and

x
Materials
c. Update specification of E& M x

AGENDA 1 – PROMOTE
INCLUSIVE DEVELOPMENT
THRU RURAL
ELECTRIFICATION
Target
Short Term Long Term Perceived Resources and Support Lead and
No. Initiatives Mitigation Plans
Risk/Challenges Required Support Unit
2023 2024 2025 2026 2027 2028
(1) On-site monitoring before project
completion
(2) Impose liquidated damages to project
contractors for the delay of project
completion
(3) Establish regional staging area Fund, TEREDD,
Unliquidated
(4) NEA to procure materials for SEP project Logistics, CPO, FSD,
Subsidies
(5) Re-enforce guidelines for the subsidy Manpower AMGD
funded projects
Facilitate total (6) Capacity building on process of liquidation
electrification by 2028 1085 2000 2335 2503 2155 -
for subsidy funded projects
(7) On-site validation of sitio electrification
1.a
Note: Remaining sitios projects
not energized: 10,007
as of Dec. 2022 Coordinate with Department of Interior and
Local Government Local Government (DILG) and Department of OA,
Legal Expert, Manpower
Unit permits Energy (DOE) to issue memorandum for LGU to TEREDD,IDD
waive the cost of permits
Seek assistance from LGU or uniform personnel

Peace and Order
to address security problems
In-house
conduct of (1) Disapproval of grant for training and 1) Partnership with other government
feasibility study budget for consultant agencies Subsidy Fund,
TEREDD, FSD,
1.b for renewable x Logistics,
AMGD
energy and (2) Disallowance of budget for software 2) Encourage ECs to undertake projects via Manpower
embedded and equipment (HOMER) JV
generation
(1) Declare subsidy balance as savings to

(1) Not sufficient funding fund other projects
(2) Strengthen linkages for support on the
Subsidy Fund,
(2) Lack of support from executive and funding requirement OA, TEREDD,
2 Fund Sourcing x Logistics,
legislative bodies (3) Strict project implementation within the FSD
Manpower
prescribed timeline
(3) Ulitization Rate of NEA (4) Capacity building for the liquidation
process
(1) Encourage stakeholders to conduct

(1) Inefficient design of distribution
Efficient comprehensive planning of the power
system
3.a Distribution x x system to comply with the standard design
(2) No segregation of system loss
System supported by technical study
(3) Deployment of Smart Grid System
GENERATION
(1) Weak monitoring of EC's power supply situation
(2) Slow approval of TOR & CSP
(3) Delay approval of PSA
(4) No monitoring of compliance to PSA
(5) No technical expertise in power plant operation
(6) Power plant refusing to deliver due to increase in
fuel prices (diesel/coal) (1) Construction of Embedded
Generation Facilities
TRANSMISSION
(1) No technical assistance to ECs on transmission (2) Reconstitute manpower to oversee
service the overall EC's undertaking on
(2) No data monitoring of transmission services to ECs Generation Sector
Reliable Power (3) No unit for transmission development, divestment, Manpower
3.b ED
Supply interconnection of off-grid and consortium (3) Create unit in charge for EC's and logistics
(4) WESM exposure undertaking on Transmission
(5) Red alert in main grid (ALD, MLD, line congestion) Sector (planning, operation and
assessment)
DISTRIBUTION
(1) Lack of technical personnel on power supply (4) Updating of KPS in collaboration
planning with ERC
(2) No Performance Assessment on Technical operation
(3) No enforcement and monitoring of anti obstruction
of power lines act (RA 11361)
(4) No office in-charge to address concerns on power
outages
(5) No CAPEX Planning
(6) Outdated KPS
AGENDA 5 – ENSURE
COGNIZANCE OF
LEGISLATIVE
AGENDA
Target
Resources Lead and
Short Perceived
No. Initiatives Long Term Mitigation Plans and Support Support
Term Risk/Challenges
Required Unit
2023 2024 2025 2026 2027 2028
(1) Declare subsidy balance as
Limited fund source to savings to fund other projects
5c accelerate complete x x x x x x (1) Lack of support from (2) Linkages with the executive and
RE Program executive and legislative legislative bodies for support on Fund,
OA, CPO,
bodies the funding requirements Logistics,
FSD
(3) Strict project implementation Manpower
Lack of Funds for (2) Utilization Rate of NEA within the prescribed timeline
5d x x x x x x (4) Facilitate capacity building for the
ECERF
liquidation process.
Target
Short Resources and Lead and
No. Initiatives Long Term Perceived Risk/Challenges Mitigation Plans
Term Support Required Support Unit
2023 2024 2025 2026 2027 2028
(1) Limited manpower for research

Outdated (1) Creation of focus group for research
and development
Tech specs of and development Funds, Manpower
5e x (2) Lack of personnel with expertise
13.2kV DX (2) Hiring of technical consultant and Logistics
to review and revise the existing
Infra (3) Procurement of pole design software
design
(1) No funding (requirement: Php-5B

as of Dec. 2021)
(2) No transfer of fund from DPWH to (1) Creation of ad hoc office for project
Task Force
NEA under JC3 implementation Funds, Manpower
5f Pole x x Ad hoc Office
(3) Challenges in organizing the (2) Approval of NEA budget for pole and Logistics
Relocation
taskforce relocation following Joint Circular No. 3
(4) Without establish project
management team
TPS Republic of the Philippines

NEA, ECs and MCOs: Partners in Rural Electrification and Development
NEA Bldg., No. 57 NIA Road,

Government Center, Diliman,
Quezon City 1100
www.nea.gov.ph CORPORATE RESOURCES

fb.me/OfficialNEA AND FINANCIAL SERVICES
@nea_ph
(CRFS)
" Energizing the Countryside, Electrifying the Future"

Sector: CORPORATE RESOURCES AND FINANCIAL SERVICES (CRFS) 2
Administrator's Priorities: 2. Establishment of NEA Command Center (Special Projects Office)
Target Lead and
Perceived Resources and
Initiatives Short Term Long Term Mitigation Plan Support
Risks/Challenges Support Required
2023 2024 2025 2026 2027 2028 Unit
1. Inclusion of the ₱20M ₱25M • Non-approval of • Explore other FSD,
project in the ISSP resulting to possible funding • Budget ITCSD
Proposed non- source –
Corporate recommendation generate/ • Management
Operating of DBM increase other support
Budget income
2. Procurement of • Timeliness in the • Active DICT approved TWG,

infrastructures submission of coordination project HRAD
proof of concept/ with the TWG
TOR by end- • Timely
user submission of
complete
documentary
requirements

Administrator's Priorities: 2. Establishment of NEA Command Center (Special Projects Office)
Target Lead and
2023 2024 2025 2026 2027 2028 Unit
3. Hiring of x x • Absence of • Inclusion in the Management and HRMPSB/
specialized plantilla position restructuring funding support HRAD
personnel to plan
man the center • Re-assignment
of available
competent
personnel
Administrator's Priorities: 3. Restructuring of NEA/Augmentation of NEA Personnel
Target Resources and Lead and
Perceived
Initiatives Short Term Long Term Mitigation Plan Support Support
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
1. Securing NEA Board Additional Ensure fast Management HRAD
Approval on x instruction and compliance to and CMT
Organizational requirements by the requirements/ support
Restructuring and NEA BOA instructions
creation of CMT
Availability/ Set and
commitment of prioritize dates/
proposed CMT venue for
members committee
sessions/
meetings
2. Preparation of the ff: Lack of competent Engage
a) Current State x manpower services of 3rd
Assessment Party for the
b) Workforce Analysis conduct of
x
and Planning Management CMT,
c) Cost Benefit Analysis
x organizational
support and FSD,
d) Formulation of assessment
x CMT HRAD &
Design Framework commitment CPO
e) Crafting of Budgetary
Organizational and
x
constraint Budget
Staffing Design realignment
Sector: CORPORATE RESOURCES AND FINANCIAL SERVICES (CRFS)

Administrator's Priorities: 3. Restructuring of NEA/Augmentation of NEA Personnel
3
Target Perceived Lead and
Resources and
Initiatives Short Term Long Term Risks/ Mitigation Plan Support
Support Required
2023 2024 2025 2026 2027 2028 Challenges Unit
4. Submission of x Time • Acquire consultant Budget, HRAD/
Restructuring Plan to Constraint for those specific Consultancy CMT &
GCG Issues requirements that Services all NEA
NEA alone cannot Depts.
5. Review/ x
facilitate
Resubmission of
• Ensure that the
Restructuring Plan
CMT for
Reorganizational
6. Implementation of RP x Plan prioritize the
facilitation of
resubmission
7. Inclusion of the activity x x x x x Availability of Minimize expenses FSD,
in the Proposed funds HRAD
Corporate Operating
Budget for the funding
requirements
Administrator's Priorities: 6.Strengthen the Controls on the Implementation of the Subsidy Programs
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
1. Liquidation of ₱1.5B • New process per • Conduct Regional Meeting to re- • Funding Lead
subsidy funds COA requirements orient ECs on the process flow • Additional AMGD-ASD
released to • Longer evaluation of of Subsidy Releases, Manpower
ECs on time submitted Implementation and Liquidation • Logistics Support Unit
documents prior to of Subsidy funded projects TEREDD,
ED, DRRMD
liquidation and COA • Strictly implement NEA
audit Memoranda Nos. 2015-036,
• Delayed project 2019-042 and 2021-012
completion and • Closely coordinate with
inspection/ TEREDD, ED and DRRMD on
submission of CFIA the timely completion/inspection
• EC not financially of completed projects
capable to return the • Request for additional
excess subsidy fund manpower (JO) to assist in the
• Lack of manpower evaluation of submitted
liquidation documents
• Allow staggered return of excess
subsidy fund/issuance of PDC;
grant of loan
• Seek approval of calamity grants
guidelines on the release,
implementation and liquidation

Administrator's Priorities: 7. Release of NEA’s Capitalization
Target
Perceived Resources and Lead and
Initiatives Short Term Long Term Mitigation Plan
Risks/Challenges Support Required Support Unit
2023 2024 2025 2026 2027 2028
1. Inclusion in the Actively
Proposed network with
₱1B ₱3B ₱5B ₱5B ₱6B
Corporate DBM
Operating Budget Secretary;
Secure
Top-level
Non- recommendation intervention of
management
of DBM due to limited top OA, FSD
support
fiscal space management;
2. Lobbying for
x x x x x x Provide
approval justification on
the release of
Equity from
NG
Administrator's Priorities: 8. Strengthening of EC Audit (REDD, ADCOM/Legal)
Target Resources and
Short Term Long Term Perceived Lead and
Initiatives Mitigation Plan Support
Risks/Challenges Support Unit
2023 2024 2025 2026 2027 2028 Required
1. Fast tracking of Lack of qualified Request CSC HRMPSB,

Recruitment, applicants approval on OA, CRFS &
Selection and relaxation of QS HRAD
Placement (RSP) Fast turnover rate on experience
process for and transfer of for entry level
Regular Plantilla employees positions
and Technical
Consultant x Limited HRMD Beef-up
positions manpower for RSP manpower
complement of
HRMD for RSP Funding
Management
Support
2. Conduct of Timeline of the • Hasten CMT/Top

Organizational approval of the processes Management
Restructuring restructuring plan; internal to NEA /HRAD
x x x
Noncompetitive • Active
salary scheme networking
with GCG

Agenda 1: Promote Inclusive Development through Rural Electrification
Target Resources
Perceived Lead and
Initiatives Short Term Long Term Mitigation Plan and Support
Risks/Challenges Support Unit
2023 2024 2025 2026 2027 2028 Required
 Total Electrification - SEP/BLEP/Renewable/Micro-Grid
1. Request for • Release of NEA
funding of NEA limited capitalization AMGD, FSD,
x x x x x x
renewable source of fund • Enter into co-financing TechServ
projects of ECs with other FIs
2. Increase x x x x x x • Delayed • Closely monitor • Funding TechServ,
utilization of project implementation of • Additional AMGD,
subsidy completion subsidy funded projects Manpower HRAD
appropriation • Delayed • Oblige ECs for timely • Logistics
Liquidation of and complete
previously submission of
released liquidation documents
subsidy funds • Simultaneously release
to ECs various subsidy funded
projects
• Request for additional
manpower (JO) to
assist in the evaluation
of submitted liquidation
documents
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 Total Electrification - SEP/BLEP/Renewable/Micro-Grid
3. Electronic x Funding and time Develop electronic Logistics ITCSD
system for constraint system for liquidation AMGD
monitoring of
subsidy funds
4. Amendment of x • Long process of • Secure fast Management Top

MOA Template review of OGCC approval of Support; Manageme
(Calamity Grant) Guidelines in the Legal Opinion nt, AMGD,
to align with the • Delayed release release, and Advice LSO
Guidelines in the of calamity grant implementation
Release, and liquidation of
Implementation calamity grants
and Liquidation
of Calamity
Grants

Target Lead and
2023 2024 2025 2026 2027 2028 Unit
 Fund Sourcing
1. Inclusion of RE ₱1.89 ₱8.2 x x x x Non- • Determination of • Top-level Top
Projects in the 7B B recommendation shover-ready management Managem
Proposed of DBM for the projects by lobbying ent FSD,
Corporate whole amount due CPO/TEREDD CPO,
Operating to limited fiscal TEREDD,
Budget to be space
requested as
Subsidy from NG
2. Collection of ₱1.63 ₱1.57 ₱1.47 ₱1.38 ₱1.13 Non-payment of Send collection • Schedule of FSD,
ECs' loan B B B B B loan amortizations letters; loans AMGD,
amortizations due Restructure/ amortizations LSO
due Special Payment • Legal
3. Modular Genset ₱300 ₱100 Arrangement of assistance
Fund for M M ECs’ with loan
Calamity Loan to arrearages;
ECs Secure
DOE approval
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 Efficient and Reliable Power Supply
• Enter into Co-
financing with other
Guarantee of
Limited source FIs
power supply of x x x x x x AMGD/FSD
of funds • Release of NEA
ECs
capitalization

Agenda 2: Intensify NEA and EC Capacity Building
Target Resources Lead and
Perceived
Initiatives Short Term Long Term Mitigation Plan and Support Support
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 Seminars/Trainings and Learning and Development for NEA
1. Enhancement of • Outdated eICPM • Enhancement/
e-ICPM to template; update of eICPM
address the • Limited personnel template
current issues x with expertise to • Train the Budget CPO
(ERC address new possible/identified
regulations) requirements of speakers/
the power industry consultants
2. Intensify
Less importance • CSC Seminars HRAD & all
Coaching and
x x x x x x given to coaching • Focused Group Managers/
Mentoring of Supervisors
and mentoring Discussion
employees
3. Provide and/or • Funding
Enhance • Availability of
Include in budget NETI,
Competencies of requisite
x x x x x x appropriation and HRAD,
Employees intervention to
training calendar FSD
enhance
competencies
Agenda 2: Intensify NEA and EC Capacity Building
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 NEA-BIT Sustainability
1. Integration of x Time constraint Evaluate and Budget Committee,
eICPM and DDP issues; consultant implement the CPO,
to NEA-BIT integration ITCSD and
2. Review process x Delayed/non- Formulate sanctions Budget other
the timeliness, generation of for ECs; concerned
completeness reports Show Cause Order/fee depts.
and reliability of
submission and
generation of
reports
3. Service fee for x ARTA Regulations Formulate policy on Budget
outside users charging of fee

Agenda 4: Enhance Corporate Governance
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 Provide Loans through Lending and Guarantee Program
ECs delayed
1. Identification of Launch marketing
x x x x x x submission of AMGD
EC beneficiaries strategies
requirements
2. Revisit/
Lobby and work for
amendment of Limited source AMGD/
x release of NEA
loan policy of funds FSD
capitalization
guidelines
Target Resources Lead and
Initiatives Short Term Long Term Perceived Risks/Challenges Mitigation Plan and Support Support
2023 2024 2025 2026 2027 2028 Required Unit
• ECs’ remaining franchise/ Closely
3. Timely processing corporate life of the ECs coordinate with
of EC loan x x x x x x • Limited technical evaluators concerned
approval • NEA’s limited funds departments
• Expired loan validity period of /interested
undrawn loan balances parties
• Loans and/or projects are not
4. Timely release of included in the approved COB
₱1B ₱2B ₱2.5B ₱3B ₱3B ₱3B
EC loan request and/or Workplan/CAPEX Plan AMGD,
• Delayed approval ECs TechServ,
Budget/
Workplan/CAPEX Plan/eICPM FSD, CPO,
Advise ECs to Logistics
• Delayed submission of MCSO,
complete requirements from renegotiate with RAO
the ECs other FIs to offer
5. Clearances to • New/additional requirements lower interest
ECs loans outside x x x x x x of NEA BOA for the approval rates and
NEA of loan provide waiver
• Non-generation of reports in on other
the NEA BIT charges
• Increasing interest rates of
other FIs

Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
ECs delayed
Intensify efforts to
6. Restructuring/ submission of
follow-up submission of AMGD,
SPA of ECs’ loan x x x x x x requirements
requirements FSD
arrears Financial
capability of EC
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 Review and amendment of existing policies and guidelines
Review and/or
Amendment of the
following and • Conduct of
information assessment session
dissemination of to facilitate review
the same: and if necessary,
• Availability of amendment of the Management CPO,
a) NEA Manual of concerned Manual and the Support HRAD,
Corporate x officials Code. NETI and
Governance CCSMO
x • Lackluster • Innovative
b) NEA Code of response and information
Ethics support of dissemination and
NEA engagement of
employees officials and
employees

Agenda 5: Ensure cognizance of Legislative Agenda
Target Lead and
2023 2024 2025 2026 2027 2028 Unit
 Release of Additional NEA Capitalization
• Justification on
Inclusion of the the release of
Depending on the Non- Network with DBM/ FSD, OA,
activity in the Equity from NG
amount to be provided recommendation Request Top CPO,
Proposed x ₱1B • Top-level
by CPO, AMGD, of DBM due to Management AMGD,
Corporate management
TechServ limited fiscal space intervention TechServ
Operating Budget lobbying
Perceived
Risks/Challenges
2023 2024 2025 2026 2027 2028 Required Unit
 Lack of funds for ECERF
1. Inclusion of
ECERF in the
Proposed
Corporate
Operating
Budget; Non-recommendation Network with
Top-level FSD,
2. Request DBM ₱750 ₱750 ₱750 ₱750 ₱750 of DBM for the whole DBM/ Request
x management DRRMD,
for the M M M M M amount due to limited Top Management
lobbying OA
immediate fiscal space intervention
release of
₱750.00 Million
as "stand-by
fund", in relation
to RA 11039

Target Lead and
2023 2024 2025 2026 2027 2028 Unit
 Limited funds to Accelerate/Complete The Rural Electrification Program
Non-
recommendation Network with • Determination
of DBM for the DBM/ Request of shovel-
Inclusion of RE whole amount due Top Management ready projects
FSD,
Program in the to limited fiscal intervention by CPO/
Depending on the amount to CPO,
Proposed x space TEREDD
be provided by CPO TEREDD,
Corporate Fast-track • Top-level
OA
Operating Budget Issue on NEA's implementation of management
absorptive projects already lobbying
capacity funded from
subsidies
KEEP KICKING,
KEEP GOING!
Sector: Legal Services Sector

Administrator’s Priorities: #3 Restructuring of NEA/Augmentation of NEA
Personnel/Review of OPASS Alignment
Target
Short Term Long Term Perceived

Resources and Lead and
Initiatives Risks/ Mitigation Plans
Support Required Support Unit
Challenges
2023 2024 2025 2026 2027 2028
✔ ✔  Lack of Training  Hire a Consultant  Technical Training  HRAD and all

a. Change
Management or Technical that will guide the  NEA Employees Departments
Team (CMT) Knowledge CMT and review the  Consultant
Committee progress  Benchmarking
Representation  Research
or Support
✔  Displacement of  Transfer of  Manpower and funds  HRAD and all
b. Restructuring of
employees displaced Departments
the NEA to be
 Lack of employees to
responsive to the
succession plan another Department
needs of the
 Availability of and proper transfer
agency
funds of knowledge
Administrator’s Priorities: #3 Restructuring of NEA/Augmentation of NEA
Target

Challenges
2023 2024 2025 2026 2027 2028
c. Institutionalization ✔  Availability of  Hiring of project  Budget,  HRMD

of RAO funds and officers meantime  Approval of GCG
logistics the creation of and/or DBM
plantilla positions
 Assignment of
technical personnel
from other
departments to
RAO

Administrator’s Priorities: #5 Review of EC BOD Qualifications
Target

Challenges
2023 2024 2025 2026 2027 2028
Review BOD ✔  Legal Challenge  Information  Budget  IDD

Qualifications education campaign  Legal
on the power of the
NEA to prescribe
additional
qualifications in
accordance with RA
10531
Administrator’s Priorities: #6 Strengthen the Controls on the Implementation of the
Subsidy Programs
Target

Challenges
2023 2024 2025 2026 2027 2028
a. Validation of ✔ ✔ ✔ ✔ ✔ ✔  Late submission  Ensure  Complete supporting  IAQSMO and

NEA of supporting completeness and documents TEREDD
Performance documents for readiness of
Scorecard validation documents
(SM 1, SM 8, SM
9)
b. Internal Quality ✔ ✔ ✔ ✔ ✔ ✔  Unavailability of  Pre-determined  Documented  IAQSMO and
Audit on auditees schedule of procedures; concerned
concerned auditees Process departments
departments’ owners/responsible
QMS procedures personnel

Administrator’s Priorities: #6 Strengthen the Controls on the Implementation of the
Subsidy Programs
Target

Challenges
2023 2024 2025 2026 2027 2028
c. SEP be given to ✔ ✔ ✔ ✔ ✔ • Low energization • Revisit guidelines • Additional personnel • Cluster on

Category A and level on SEP to conduct inspection Total
below EC • Low budget • Seek (TEREDD) Electrification
utilization reconsideration
• COA liquidation from COA on the
requirement restriction imposed
Agenda No. 1: Promote Inclusive Development through Rural Electrification
Target

Challenges
2023 2024 2025 2026 2027 2028
a. Facilitate review 121+ 121+ 121+ 121+ 121+ 121+  Delays in  Constant  Additional  REPPDD/
of Power Supply submission communications and manpower RAO
Procurement of complete follow-ups with the EC (engineer,
Plan DDP  Render overtime economist, rate
Package specialist)
 Limited  Additional logistics
manpower (i.e. computer with
and logistics high processing
capacity)

Target

Challenges
2023 2024 2025 2026 2027 2028
b. Facilitate Review 72 15 16 16 10 7  Delays in  Timely endorsement  Additional  RAO/

of Terms of endorsement and of the DDP and manpower REPPDD/
Reference (to be acceptance of PSPP (engineers, TS/LSO
updated based PSPP economists, rate
on the 2023  Limited specialists)
PSPP manpower and  Additional logistics
submissions) logistics (i.e. computer with
 NEA’s domain high processing
network cannot capacity)
access DOE
website
Target

Challenges
2023 2024 2025 2026 2027 2028
c. Facilitate Review 72 15 16 16 10 7  Non-observance  Constant monitoring  Additional  RAO/LSO

of Power Supply of CSP of the procedures manpower
Agreement (to be procedure and undertaken by the (engineers,
updated based timeline Electric Cooperatives economists, rate
on the 2023  Review of the  Attendance to specialists)
PSPP rate component trainings to  Additional logistics
submissions) capacitate the RAO (i.e. computer with
personnel high processing
capacity)

Target

Challenges
2023 2024 2025 2026 2027 2028
d. Issuance of IRR ✔  Timeline in the  Strict implementation  Manpower  Legal

of the DOE updating of the of the current (economists, legal  RAO
issued guidelines existing guidelines and assistants,
on CSP guidelines massive information engineers)
education campaign
Target

Challenges
2023 2024 2025 2026 2027 2028
e. Strengthening of ✔  Lack of skilled  Multitasking of  Replacement of the  PSP

the private sector manpower assigned staff retired members of Committee
participation  Lack of training  Reconstitution of the PSP Committee  HRAD
committee PSP Committee  Trainings of
members
f. Assist in the ✔  Skills gap of  Strengthening of  Manpower  RAO

drafting of the RAO employees TWG (economists, legal  TEREDD
proposed  Lack of assistants,
guidelines for manpower engineers)
embedded
generating facility

Agenda No. 2: Intensify NEA and EC Capacity Building
Target

Challenges
2023 2024 2025 2026 2027 2028
a. Provide training ✔  Retention of  Attend extensive  Budget  NETI

programs to employees who trainings on required
strengthen and obtained the competencies
enhance existing necessary
employee training
competencies,
skills and
knowledge
Target

Challenges
2023 2024 2025 2026 2027 2028
b. Provide viewer ✔  System  Utilize the account of  Logistics (i.e.  ITCSD

access in the accessibility the concerned NEA computer with high  RAO
NEA BIT other  System BIT SME processing
than the assigned downtime and capacity)
reports to a errors
specific SME

Target

Challenges
2023 2024 2025 2026 2027 2028
c. Determination of ✔ ✔ ✔ ✔ ✔ ✔  Less priority  Conduct a skill/gap  Training/seminar  HRAD and

employees’ skill analysis budget other
gaps  Benchmarking with concerned
best practices of departments
other agencies
 Evaluate and monitor
employee training
needs
Agenda No. 3: Empower Electric Consumers
Target

Challenges
2023 2024 2025 2026 2027 2028
N/A N/A N/A N/A N/A

Agenda No. 4: Enhance Corporate Governance
Target

Challenges
2023 2024 2025 2026 2027 2028
a. Audit of Financial ✔ ✔ ✔ ✔ ✔ ✔  Lack of  Immediate hiring  Management  HRAD

Accounts manpower  Request documents Support (CPA,  Concerned
 Availability of from other sources Support staff) Departments
documents
b. Documentation of ✔ ✔ ✔ ✔ ✔ ✔
 IAQSMO and
Systems and  Close coordination  Required supporting
Department
procedures with the concerned documents
Concerned
 Unavailability of Auditees
c. Review of existing ✔ ✔ ✔ ✔ ✔ ✔ Auditees (departments/
ISO procedures, offices)  IAQSMO and
 IQAs and the
policies and Department
process owners
guidelines Concerned
Target

Challenges
2023 2024 2025 2026 2027 2028
d. Regular Updating ✔ ✔ ✔ ✔ ✔ ✔  Frequency of  Identify which items  Legal  IAQSMO and

of the Manual of amendments are for approval and bases/applicable Department
Approvals those for the guidelines Concerned
(MANAP) information of the
Board
e. Review of the ✔  Legal Challenge  Information  Budget  IDD
Guidelines on EC education campaign  Legal
BOD on the power of the
Qualifications NEA to prescribe
additional
qualifications in
accordance with RA
10531

Target

Challenges
2023 2024 2025 2026 2027 2028
f. Strengthening/ ✔  Immediate  Inform and  Manpower  RAO

Enhancement of review of KPS encourage ECs to complement in the  OPASS
EC Overall and proposed strictly follow ERC OPASS  LEGAL
Performance incorporation of Regulations which
Categorization EC Show Cause are the basis of the
Orders Show Cause Orders
g. Digitization and  Lack of  Hiring of manpower  Adequate  OCS
safekeeping of manpower equipment (i.e.  Concerned
permanent  Lack of computer with high Department
records in the equipment processing capacity,
Legal Sector  Lack of records cloud server)
from 2016-2021
Target

Challenges
2023 2024 2025 2026 2027 2028
h. Pursue the JMC ✔  Legal challenge  Inform ECs of the  Fund  LSO
with NEA and applicable law  IDD
CDA  Creation of
association of legal
counsels

Target

Challenges
2023 2024 2025 2026 2027 2028
BOARD OF ADMINISTRATORS
a. Renovation and ✔ ✔  Budget  Realignment of  Budget  Budget
Modernization of Constraints Budget  GSD
Board Room  IT
 OCS
b. Institutionalize ✔  COA adverse  Inform the Board of  Point person from  Budget
policy on the findings the allowed the concerned  Accounting
reimbursement of reimbursable Department
the Board expense
Members of their
reimbursable
expense
Agenda No. 5: Ensure Cognizance of the Legislative Agenda
Target

Challenges
2023 2024 2025 2026 2027 2028
a. Active ✔ ✔ ✔ ✔ ✔ ✔  Lack of  Proper time  Active participation  LSO

participation in manpower management of the other  MCSO
legislative complement Departments
hearings on
EPIRA
amendments and
franchise renewal

Target

Challenges
2023 2024 2025 2026 2027 2028
b. Quality and timely ✔ ✔ ✔ ✔ ✔ ✔  Lack of  Proactive and early  Active participation  LSO
submission of manpower preparation of of the other
comments/positio complement position papers on Departments
n paper EPIRA amendments
and franchise
renewal
 Preparation of
template position
paper for franchise
renewal
Target

Challenges
2023 2024 2025 2026 2027 2028
c. Early application ✔ ✔ ✔ ✔ ✔ ✔  Lack of support  Build camaraderie  Active participation  LSO

for Franchise from the LGUs in and good of the other  ECMS
renewal the EC Franchise relationship with the Departments
LGUs
ECMS Sector
Sector: ECMS
Priority 3: Review of OPASS Organizational Alignment
New or On- Timeline Lead and

Perceived Risks/ Resources and
Going Mitigation Plans Support
2023 Challenges Support Required
Initiatives Unit
Transfer of 1 Current • Adopt the proposed • Logistics, OPASS/

OPASS to manpower does Organizational Structure Manpower HRAD/
ECMS Sector not complement (submitted to HRAD July • HR/Manageme ECMS
proposed 2018 and May 2021) nt support
structure • Fast track NEA
Restructuring Plan
• Enroll OPASS to NEA’s
talent sharing program
(band-aid solution)
• Additional Project Officers
(band-aid solution)
Sector: ECMS
Priority 4: Enhancement of EC Overall Performance Assessment
Categorization

Initiatives Unit
Validation 1 • Delayed • Strictly adhere to the • Logistics, OPASS/
Scheme on EC submission by deadline set by the law Manpower ECAD,
Submissions ECs • Fast track NEA MCSO,
versus KPS • Insufficient Restructuring Plan • HR/Managemen ED,
manpower • Create Task Force from t support AMGD,
• Budget different units to conduct on- FSD,
Allocation site audit ITCSD,
• Fast track hiring process for IDD
Project Officers
• Inclusion travel and other
expenses in the budget
Sector: ECMS
Categorization
Timeline Perceived Lead

New or On- Resources
Risks/ and
Going Mitigation Plans and Support
Support
Initiatives 2023 2024 Challenges Required
Unit
Amendment of Approval of Implement Unfavorable Consultation Logistics, OPASS

Parameters amended ation of comments of with ECs Manpower
on EC Overall parameters amended ECs
Performance parameters
Assessment
Sector: ECMS
Categorization

Initiatives Unit
Formulation of 1 • Delay in • Timeline and methodology • Logistics, OPASS

Policy on EC submission of development Manpower / ECAD,
Awards and proposals by MCSO,
Recognition sub- • HR/Managem ED,
committee • Fast track hiring process ent support AMGD,
for Project Officers FSD,
• Insufficient ITCSD,
manpower to IDD
fast track the
initiative
Sector: ECMS
Priority 5: Review if NEA can Impose Additional Qualifications for BODs
of ECs:

Initiatives Unit
Revisit existing 1 Resistance from Conduct consultation with ECs EC-ISD, Proposed IDD /
provisions for MCOs (future and other stakeholders policy LSO /
possible candidates) MCSO /
additional EC- NETI /
BOD ECs
qualifications:
- Basic
knowledge on
the EC
operations
- Able to read
and interpret
financial
statements
Sector: ECMS
Priority 9: Strengthen the EC Audit
Target Resource
New or On- Perceived Risks/ Lead and
s and
Challenges Support
Initiatives 2023 2024 Unit
Required
Hiring/Filing-up of • Limited applicants due • Advertisement thru budget HRAD /
vacant positions: to low salary for entry- popular job-seeking/ ECAD /
level position job recruitment FSD
Junior 7 platform (eg. Jobstreet,
• Less Audit Teams Linkedin)
Senior 10 deployed (increase in
unaudited period) • Propose increase/
upgrade of Job Grade
in the reorganization
Request for 17 7 • Non prioritization of • Use of personal laptop Budget Finance,
procurement of procurement of • Borrow laptop from ITCSD and
logistics (Laptop, laptops ECs GSD
External Hard • Laptop delivery - 2024 • Special procurement
Drive) of logistics
Sector: ECMS
Agenda 3: Empower Electric Consumers
Target Perceived Resources Lead and
New or On- Mitigation
Risks/Challen and Support Support
Going Initiatives Plans
2023 2024 2025 2026 ges Required Unit
Creation of
federated Lack of EC
Additional
MCOOs management
Conduct manpower,
commitment;
Regional funding/ IDD/FSD/HR
a. Provincial 2 2 budgetary
Consultation budgetary AD
constraints;
with ECs requirements,
resistance from
b. Regional 2 2 logistics
LGUs
Sector: ECMS
Agenda 4: Enhanced Corporate Governance

Initiatives Unit
Review and 1 Unfavorable Issue amendments to the Management IDD,
amendment of comment/ following guidelines: support MCSO
Existing policies reactions from • Selection & Hiring for EC CORSEC
and guidelines ECs GM LSO
• Procurement Guidelines of ECAD
ECs
• Allowances and Benefits for
EC officers and employees
• Disposal of NPAs
• Policy on compensation of
PS/AGM
• Memo on Explicit Approval
• Consultancy for EC
Sector: ECMS
New or Target Lead and
On-Going Mitigation Plans Support
Initiatives Unit
Issues and concerns of under-performing and ailing ECs

Provision of management assistance:
Creation of 1 Divided attention on Ensure designation of OIC EC/NEA MCSO
Management implementation of to ECs
Team/ Task Force deliverables
Designation of PS 1 • Limited NEA personnel • Accreditation of EC/NEA MCSeC,

and AGM Consultants/Experts MCSO
• Prone to legal
actions/court cases
• Provision for legal
assistance
Engagement of 1 Engagement/ Formulation of clear-cut EC/NEA MCSeC,
management Consultancy Fee Policy/Guidelines re: MCSO
consultants for ECs Compensation
Sector: ECMS
New or Target Resources and Lead and
Perceived Risks/
On-Going Mitigation Plans Support Support
2026 Challenges Required Unit
Initiatives
Transfer of 1 Resistance of BARMM- Assist in the Manpower, budget Managemen
BARMM ECs to MENRE to coordinate formulation of t Task
MENRE with NEA as to the Transition Plan for Force,
Transition Plan due to Bangsamoro Organic MCSO, LSO
lack of enabling law Law (BOL) / IDD / FSD
Unguaranteed security Ensure provision for
of tenure on the part of retirement/separation
EC employees benefits in the
Transition Plan
Sector: ECMS
Perceived Risks/
2023 - Challenges
Initiatives Required Unit
2028
Establishment of
documented 3 per Prioritization in the
Complexity of MCSO /
standard systems year formulation of systems EC/NEA
transaction LSO
and procedures and procedures
Encourage Private
Sector 100% No interested investor MCSO /
NEA take-over EC/NEA/LGU
Participation LSO / EC
Sector: ECMS
Agenda 5: Ensure Cognizance of Legislative Agenda
Perceived Risks/
2024 Challenges Required Unit
Initiatives
Long-overdue accounts with PSALM and NPC - SPUG of Underperforming EC - those in watchlist or
financially and technically distressed
Condonation/ 1 Resistance of DOF and Lobbying of various EC NEA/EC/ Political LSO /
write-off of all other affected gov't allied organization Leaders MCSO /
long-overdue agencies AMGD
accounts
Group:
Outstanding Advocates (OA)
Corporate Communications and Social Marketing Office (CCSMO)
Corporate Planning Office (CPO)
Information Technology and Communication Services Department (ITCSD)
NEA-EC Training Institute (NETI)
Office for Performance Assessment and Special Studies (OPASS)
Sector: Office of the Administrator

Administrator’s Priorities: Transition from 7-Point Agenda and
Revision of NEA Vision
Target
Resources
and Lead and
Support Support Unit
Challenges
Required
2023 2024 2025 2026 2027 2028
Facilitate the Board

Possible delay of
approval of NEA Ensures efficient CPO
approval due to
Strategy Map (Vision, processing of change in OCS
1 1 1 1 1 1 further comments Manpower
Mandated Mission, and Vision before presenting Cluster on Good
from the
Core Values) and its to the BOA Governance
stakeholders
submission to GCG
Information dissemination thru energy beat reporters, social media postings, publications and video productions
a. EC Communicators'
1 Seminar-
Seminar-Workshop Support of NEA
workshop in
employees. Acquire consultants
b. Strengthen Media creative CCSMO
1 Stakeholder's and/or additional
Relations writing and NETI/HRAD/OA
interpretation and personnel for CCSMO
video
c. Sustain Media understanding.
1 1 1 1 production
Relations
Administrator’s Priorities: Establishment of NEA Command Center: Dashboard
Project
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
NEA/EC Assessment of
ICT/SCADA 1. Various EC
1. Constant coordination Dedicated
a. Infrastructure X X levels OO re:
with ECs man-hours
b. Manpower X 2. Budgetary Command
2. Proper/pro-active
Complement constraint of Center
planning Allotted funds
c. Training Skills X X X X X NEA
d. Connectivity X X
Crafting of a MasterPlan
a. Proof of Concept X Front-end meetings/
(PoC) assessments Trainings/ OO re:
Real-life
b. Budgetary Plan Benchmarking activities Skills Command
applicability
c. Milestones X X X X X with existing Command Upgrading Center
d. Manpower X Centers
Complement

Administrator’s Priorities: Establishment of NEA Command Center: Dashboard
Project
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Implementation of the
Realization of OO re:
PoC to Pilot ECs with Intervening Focused group and
X allocated Command
the NEA Command projects mission
funds Center
Center
Pro-active assessments Realization of OO re:
Full implementation but
X X X X Lagging KPIs and application of allocated Command
in phases
necessary interventions funds Center
Administrator’s Priorities: Restructuring of NEA/Augmentation of NEA
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Provide efficient and HRAD

Provide full support as Additional
prompt action from the Change
part of Change 100% 100% 100% - - - workload of the Manpower
Change Management Management
Management Team CMT members
Team Team
Submission of Restructuring Plan to HRAD

a. Preparation and Approval of the
submission of the proposed
1 Acquire consultants
Restructuring Plan for additional plantilla
and/or project officers to
CCSMO positions in
complement the CCSMO
CCSMO. Budget
manpower requirements. HRAD/OA
b. Sufficient and Limited number of
Additional plantilla
competent workforce 1 interested and
positions for CCSMO
for CCSMO qualified
applicants.

Administrator’s Priorities: Strengthen the Controls on the Implementation of the
Subsidy Programs
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
TOTAL ELECTRIFICATION THROUGH RURAL ELECTRIFICATION PROGRAM

Sitio Electrification Program (SEP)
Network with
Congress,
Inadequate
a. Secure funding with DOE, DBM
government
concerned and OP for CPO, TEREDD,
X X X X X X subsidy allocations Funding support
government the adoption FSD
to finance the
institutions of Rural
targets for SEP
Electrification
Program
Adopt NEA's criteria for
Extension of
implementation (i.e.
b. Provide electric electric distribution
accessibility and proximity Regional
service to the line is in remote CPO, TEREDD,
X X X X X of the areas, right-of-way, consultations
emerging additional areas (i.e FSD, ITCSD
peace and order with the ECs
sitios mountainous,
condition, population
small islands, etc.)
density of the area, etc.)
Subsidy Programs
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028

Barangay Line Enhancement Program (BLEP)
Network with
Congress,
DOE, DBM
Urgent BLEP funding to Conversion of 1-
and OP for CPO, TEREDD,
address the incoming X X X X X X Phase to 3-Phase Funding support
the adoption FSD
additional and big loads distribution lines
of Rural
Electrification
Program

Subsidy Programs
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028

Compliance to DOE's DC No. 2022-05-0017 - "Rules and Regulations to Implement Republic Act No. 11646 (Microgrid System Act)
Conduct of consultation
“Identification of workshop for the
Unserved and Anticipation of development of Local
Underserved Areas, the DOE's Department Total Electrification
Regional
DUs shall submit to the Circular of revised Roadmap (LTER) in
X X X X X X consultations DOE, NEA
DOE and integrate into template to be compliance with Section 5
with the ECs
its annual Distribution submitted to all of the implementing rules
Development Plan DUs nationwide and regulations (IRR) of
(DDP)” Republic Act No. 11646
"Microgrid Systems Act"
Subsidy Programs
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028

Secure updated inventory
of unenergized farms,
Inadequate
tourist destinations,
government's
schools and health
subsidy allocations
Assist in the provision of centers from concerned Coordination
to finance the
electricity to farms, government agencies among
targets for SEP;
tourist destinations, X X X X X X concerned CPO, TEREDD
and improvements
schools and health Closely coordinate with government
of tapping points
centers the concerned agencies
and line
government agencies and
enhancement of
ECs in the
barangays (BLEP)
implementation of the
projects

Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Consumer Connections
Harmonization of list of
potential connections Delayed Issuance Continuity based on 2015 Dedicated
XX ITCSD
with the DoE list (based of PSA Census man-hours
on the 2020 Census)
Compliance with
Project identification of
the criteria for Liquidation of released Subsidy
areas with low level of XX XX CPO/TEREDD
project funds funds
energization
inclusion/funding
Craft annual targets to Non-
CPO/TEREDD/
meet 100% energization XX harmonization of Constant benchmarking
ITCSD
by 2028 databases
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Consumer Connections
Programs to assist
potential consumers to Compliance with
meet the requirements XX XX XX XX XX XX the LGU For coordination with the lead unit IDD
for connections as code/ordinances
required by LGUs
Constant communication Delayed/non-
with the ECs for the submittal of EC
Pro-active monitoring of Sustainability
timely and accurate XX XX XX XX XX XX requests for ITCSD
reports @ NEA BIT of NEA BIT
submission of reports for clarifications/
monitoring reports

Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Unified Sitio Electrification (USE) Database

Completion of sitio
masterlists Unavailability of
XX Consistent follow-ups/F2F Summits ITCSD
(CAR & BARMM EC data
=11ECs)
ITCSD/CPO/
Validation of masterlists XX Revisions Consistent follow-ups Virtual Meets
TEREDD
System development
XX Bugs Reiterative Runs Man-hours ITCSD
and beta testing
Operation and Emerging new
XX XX XX XX XX Software Flexibility Man-hours ITCSD
maintenance sitios
System enhancement Skills
XX XX System Limits Pro-active Monitoring ITCSD
and upgrading enhancement
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Funding constraint Timely packaging Funding ITCSD/SMEs
Outdated
Constant assessment Trainings ITCSD/SMEs
Platforms
Sustainability of NEA BIT x x x x x x Security & Data
Constant assessment Trainings ITCSD/SMEs
Protection
Integration with
ECs’ ICT Benchmarking Activities Trainings ITCSD/SMEs
ecosystem

Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Ensure ECs' plans and Incomplete data Conduct Regional Active

projects in the 2-Year required by the Workshop to assist the participation
Workplan - consistent X X template and Ecs' in the preparation of of TWG from e-ICPM TWG
with their ERC submitted delayed its 2-Year Workplan using various
CAPEX plans submission the e-ICPM departments
Partnership with ERC Coordination among the
regarding the adoption of Timeline intended NEA concerned
Customized
the e-ICPM as the tool X X X X X X in the preparation departments for the e-ICPM TWG
e-ICPM
for evaluating the ECs' of updated e-ICPM additional updates on the
CAPEX application details of the template
Summary of
EC's 10-Year
Regional deliberation of Incomplete data projected
the ECs' annual required by the demand
Assist DOE on conduct
Distribution X X X X X X template and requirements CPO
Regional Workshop
Development Plan delayed ; Actual data
(DDP) submission on peak
demand and
system loss
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
TEREDD's
report of
Submission of NEA's
completed CPO, FSD,
programs/projects/activiti Lots of forms to
X X X X X Coordination with NEDA projects TEREDD,
es to NEDA's Regional fill-up
ITCSD
Development Council
NEA SEP
Database
Evaluated
Provision of proposed
SEP and
lists for SEP and BLEP Availability of
Completeness of required BLEP from FSD, TEREDD,
fund requests of NEA X X X X X X requested subsidy
documents TEREDD, ITCSD, CPO
from the national fund
ECs‘
government
masterplan
Provision of electricity to Submission of ECs‘
Coordination among
agro-industries and eco- details and surveyed TEREDD,
X X X X X X concerned government
tourism to increased particular areas of area of the ITCSD, CPO
agencies
livelihood opportunities the project project

Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Capacitate EC officials
and employees to
pursue and take further
Coordination with the
action in the
Department of Energy
implementation of RA
(DOE) to act as resource Funding
11646 "An Act Promoting Limited technical
persons to help Subject NETI
The Use of Microgrid experts to address
50% 100% - - - - capacitate EC officials Matter TechServ
Systems to Accelerate distribution utility
and employees in the Experts FSD
the Total Electrification of competency gaps
pursuit of the full (SME)
Unserved and
implementation of RA
Underserved Areas
11646.
Nationwide"
(Completion rate)
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
a. Limited
a. Encourage NEA
technical experts
employees to hone their
to address
skills and impart their
distribution utility
knowledge by joining the
competency gaps
NETI pool of SMEs.
b. Disruption due
to travel restriction
b. Expand current pool of
caused by Funding
training service providers
Capacitate EC natural/man-made Subject
with online and hybrid NETI
Personnel 1450 1550 1650 1750 1850 1950 disasters Matter
training capabilities. TechServ
(No. of graduates) c. Suspension of Experts
NEA Guidelines in (SME)
c. Granting of honorarium
the grant of
to Resource Speakers/
honorarium as per
Implementation of NEA
NEA guidelines
policy on the grant of
"Modified Rates
honorarium to NEA
on Speakers'
Resource Speakers.
Honorarium" dated
5 March 2021

Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Propose to amend the

Lack of NETI Training Requirement of
Capacitate NEA personnel in- NEA personnel (As per Management
Personnel 550 560 570 580 590 600 charge of training Corporate Training Policy Support NETI and HRAD
(No. of graduates) due to vacancy of 101-01 "Attendance of at Manpower
plantilla positions least 1 training program a
year"
Decentralized/dere
gulated conduct of
training to ECs in Course through / proper
NETI as the lone training violation of NEA coordination with NETI all Management
All concerned
provider of NEA 75% 100% - - - - Guidelines in the training requests/ similar Support
departments
(Success rate) provision of NEA activities of ECs Coordination
Resource
Speakers dated 25
March 2021
Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
a. Limited
technical experts
Institutionalize Online to develop the Hiring of Contract of NETI
Funding
Learning Delivery 10% 25% 50% 75% 100% - system Service to develop online FSD
IT Support
(Completion rate) b. Fund Source for learning delivery system ITCSD
the system
development
Ensure provision of
Tap/train other employees
Seminar-Workshop on Insufficient Manpower CPO
2 2 2 2 2 2 outside CPO to increase
Balanced Scorecard/ISO manpower Budget NETI
the able facilitators
Certification for the ECs

Target
Resources
and Lead and
Challenges
Required
2023 2024 2025 2026 2027 2028
Ensure the attainment of

GCG-approved Delayed Facilitate strict and CPO
Corporate Performance submission of the efficient monitoring and Compliance
100% 100% 100% 100% 100% 100% Manpower
Scorecard and concerned lead coordination with the lead Officer
compliance to its PES units units Lead Unit
requirements
Review or Enhancement
Availability of vital
of the Agency’s existing
records and Ensure proactive
Business Continuity Plan CPO
1 1 1 1 1 1 information approach to the Manpower
(BCP) and Public NEA-wide
needed for the concerned departments
Service Continuity Plan
plan
(PSCP)
ADMINISTRATOR’S
INPUTS/COMMENTS
ON THE GROUP
PRESENTATIONS
Nine (9) Administrator’s Priorities
Action Item Remarks
 Prioritize the establishment of NEA Command Center
Establishment of NEA  Schedule a meeting with the Administrator and CMT for
Command Center possible re-assignment of personnel to command center
 Integrate the e-ICPM and DDP to NEA Command Center
 Secure the NEA Board approval on Organizational
Restructuring within the first quarter of 2023
Restructuring of NEA  Provide the proposed structure of the additional sector
(ADCOM, ECAD) including its functions and required
personnel by February 14, 2023

Action Item Remarks
 Fast-track recruitment, selection and placement process
 Secure CSC’s opinion for the hiring of Job Orders to
Departments/Offices with vacancies and for possibility of
Augmentation of NEA
easing up on qualification standards of some plantilla
Personnel
positions with unqualified applicants
 Hire personnel to strengthen the REDD to evaluate project
portfolios
 Amend the EC Categorization parameters wherein AAA ECs
Review of OPASS should have exemplary performance in financial, technical,
Organizational and institutional performance
Alignment  Perform EC audit with one-day notice to validate the
documents submitted in NEA-BIT, if needed
Action Item Remarks
Enhancement of EC  Impose a stricter measure for the prompt submission of
Overall Performance reportorial requirements, such as provision of an ADCOM
Assessment case or a show cause order for delayed and non-
Categorization submissions
Review of EC-BOD  Include Fiscal Management as mandatory training of EC-
Qualifications BODs

Action Item Remarks
 Amend of MOA between NEA and ECs on subsidy projects
to address the delayed liquidation of ECs and release of
Strengthen the
calamity funds
Controls on the
 Prepare the list of COA disapproved liquidation for the
Implementation of
Administrator’s reference
Subsidy Programs
 Utilize all funds for every program shared by the government
with NEA
 Determine and specify the required expertise and capacitate
Strengthening of EC the needed personnel
Audit (REDD,  Schedule a meeting with the Administrator, ITCSD, and
ADCOM/Legal) REDD for the procurement of software for renewable energy
projects
NEA 5-Point Agenda
Action Item Remarks
 Expedite the evaluation of SEP projects for additional
funding
 Provide a copy of the signed Joint Venture Agreement (JVA)
Agenda No. 1 to the Administrator
“Promote Inclusive  Provide a list of ECs with expiring PSAs
Development through  Schedule a meeting with ASEC Marasigan and RAO
Rural Electrification” regarding the guidelines on TOR publication and other CSP
procedures
 Issue a regulatory advisory regarding the guidelines on
CAPEX application/approval
NEA 5-Point Agenda

Action Item Remarks
 Present to the Administrator the issues on CSP procedures
then schedule a meeting with DOE and ERC
 Craft a position paper indicating that all joint PSA
Agenda No. 1 applications of GENCOs and ECs shall go through NEA
“Promote Inclusive
prior to submission to ERC and NEA to participate in its
Development through
hearings conducted by the ERC
Rural Electrification”
 Assert the authority of NEA in all EC matters, such as the
evaluation and awarding of Joint Ventures and reportorial
requirements
NEA 5-Point Agenda
Action Item Remarks
 Streamline the functions of the dedicated Subject Matter
Experts (SME), if necessary
 Present to the Administrator the list of SMEs with pending
Agenda No. 2
validation of Data Entry Template (DETs) including the
“Intensify NEA and EC
response time
Capacity Building”
 Design relevant training programs to keep NEA employees
competitive (e.g. Renewable Energy Trainings for
Engineers)
NEA 5-Point Agenda

Action Item Remarks
 Consider logistics cost of materials and equipment in the
Agenda No. 4 areas of Visayas and Mindanao
“Enhance Corporate  Take full cognizance and develop a scoreboard system on
Governance” show cause orders from ERC
 Implement the policy on disposal of NPAs
NEA 5-Point Agenda
Action Item Remarks
 Prepare guidelines for proof of implementation (documents,
Agenda No. 5 pictures, or videos) to verify that funds were utilized
“Ensure Cognizance of accordingly and seek COA’s comments
Legislative Agenda”  Prepare breakdown of expenses or details for pole
relocation (PhP 4.2 billion)
CLOSING REMARKS
NEA Administrator
Timelines and schedules will be strictly monitored

Consider the timeline of hiring process to address the issue of
inadequate NEA manpower
NEA will prioritize the filling up of warm bodies in close coordination
with the Deputy Administrator for CRFS and the HRAD Director
Double time on executing the tall orders and be proactive in dealing
with the aggravating energy crisis

NEA Administrator
Rest assured NEA will have full authority on EC operations

Simplify and make the process of NEA requirements easier for the ECs
to cater their needs
Considering the insufficient personnel of Technical Services and
ECMS, it is expected to do multitasking due to the numerous
assignments ahead
ANNEXES
NEA SWOT ANALYSIS
Strengths
Strengths Sector
Vested with regulatory and supervisory, quasi-judicial, commercial and OA/ECMS/
non-commercial powers over the ECs CRFS
New and strong leadership with clear vision and direction, and support of
CRFS/TS
the current administration
Strategic role of NEA on the economic growth TS
ECMS/LS/
Competent workforce (unified, multidisciplinary, proficient, team oriented)
OA/CRFS
Strong relationship/support with the ECs, private and government
LS
agencies, and other stakeholders
Ability to adjust to handle heavy workloads despite of insufficient logistics CRFS/OA/
and manpower TS/ECMS
Well-defined governance principles focused on service excellence OA
Strengths
Strengths Sector
Objective and impartial in the performance of functions LS
Good track record on the implementation of REP CRFS
Multi-awarded GOCC and ISO certified ECMS
Experts in the implementation of Rural Electrification Program and in
ECMS/OA
providing LIFT services for the ECs
Provides loans for CAPEX projects as part of NEA’s financial services TS
Compliant to legal aspect without compromising the quality of
LS
outputs/results
Manage funds for electrification programs TS
Capability to generate income from the provision of some assistance to
OA
ECs (service for a fee)
Weaknesses
Weaknesses Sector
TS/ECMS/
Limited funding/capitalization
CRFS
Insufficient manpower (lawyers, CPAs, engineers, auditors) and logistics
TS/LS
resources
Outdated information technology infrastructures CRFS/OA
Ineffective system on determining and providing the appropriate training
LS
for the employees
Unrealized succession planning ECMS/OA
CRFS/
Unresponsive organizational structure
ECMS
Rapid turnover rate LS
Weaknesses
Weaknesses Sector
Limited subject matter experts to act as resource speakers OA
Uncompetitive professional fees for NEA speakers OA
Complex procedure to process documentary requirement TS
Inadequate expertise to address new requirements of the power industry
CRFS
(EC rates, CAPEX, WESM, RCOA etc.)
Outdated policies/guidelines ECMS
Lack of disaster preparedness TS
Lack of opportunity for promotion and increase in wages and salaries LS
Opportunities
Opportunities Sector
Enabling laws that can be source of additional funds, revenue,
TS
knowledge, trainings, manpower and logistics
Technological advancement/digital transformation TS/LS
New administration TS
EPIRA amendment ECMS
Transfer of BARMM ECs to MENRE ECMS
Implementation of RE and Microgrid System Projects ECMS/OA
Commercial operation of WESM Mindanao CRFS
Subsidy from the National Government and foreign grants CRFS
Opportunities
Opportunities Sector
Engineering and Administrative Overhead from the release of subsidies to
CRFS
ECs
Special Provisions in the GAA and government laws, rules and
CRFS
regulations on budget flexibility
Private sector participation options for ailing ECs OA
EC’s authority to venture into power generation and renewable energy
OA
development
Availability of social media OA
Innovative solutions for operational efficiencies LS
On-going negotiation between NEA and CDA and have a Joint
LS
Memorandum Circular
Threats
Threats Sector
Expiration of 76 ECs’ PSAs LS
CRFS/OA
Renewal/non-renewal of nearing expiration EC franchise
TS/ECMS
EC Privatization/Encroachment of franchise of ECs with large load
TS/ECMS
consumers by private DUs
EC Privatization TS
Non-release of NEA's guarantee funds/equity from NG and subsidies CRFS/OA
Lack of support from legislative and executive for funding TS
Climate change resulting to stronger typhoons and other calamities TS
Threats
Threats Sector
Compliance to DOF instruction of NEA to concentrate its lending to ECs
CRFS
under category B, C and D
Change in political agenda/priorities of new leadership that challenges ECMS/
NEA’s existence and adverse political intervention in ECs CRFS/OA
Abolition of NEA TS
Duplication of NEA’s functions by other agencies ECMS
Complexity of the power industry CRFS
New players/giants in the power industry OA
Lower interest rates being offered by other lending institutions to ECs OA/ECMS
PROPOSED VISION
Proposed Visions
Sector Proposal
“To transform the Electric Cooperatives into globally competitive
electric utilities through digitalization and innovative solutions to
Technical Services
the challenges of total electrification, anchored on transparency
and good governance”
“Attainment of rural development through total electrification by
Corporate Resources
2028 in partnership with highly competent and service-
and Financial Services
oriented Electric Cooperatives anchored on good governance.”
“Promoting good governance, competence and transparency
Legal Services
to achieve fully electrified Philippines in 2028”
Electric Cooperative “Total electrification on an area coverage basis by 2028
Management Services anchored on transparency and good governance”
“A transparent and globally -competitive NEA that promotes
Office of the
good governance in achieving inclusive development through
Administrator
total electrification”
PUROK 4, BRGY. SAN JUAN
STA. RITA, W. SAMAR
REPORT OF ACCOMPLISHMENT –
REGION 8 ECs DEC. 21, 2022
OUR PHILOSOPHY
OUTLINE
1. Company Vision, Mission & Primary Purpose

2. Brief History
3. Board of Directors
4. Stockholders & Organization
5. Business Lines
- Substation Testing, Supply Center & Line
Construction
6. Financial Condition & Operations
7. Other Businesses
“ VISION
A Service Company wholly supportive of
the requirements of its Principal Customers
MISSION
To provide modern Technical, Financial
and I.T. Support Services to Customers
BRIEF HISTORY
▰ Registered on March 27, 2013 with Securities and Exchange
Commission
▰ Expiration of PSALM/NPC Power Supply Contract on Dec. 26,
2013.
▰ Privatization scheme for the selection and appointment of the
Independent Power Producer Administrators (IPPAs) for the
Unified Leyte Geothermal Plants. –July 31, 2013
▰ Opening and Declaration of Winning Bids on Nov. 7, 2013
▰ Super Typhoon Yolanda – Nov 8, 2013
▰ RPC’s venture into businesses materialized in 2016-2017 to
maximize its resources
▰ Started with Substation Testing in 2018
PRINCIPAL/PRIMARY PURPOSE
▰ Generating energy of any sources

(Form, types, kinds)
▰ Transmitting energy of any source
▰ Selling of electric power to: power
corporations, electric utilities or electric
cooperatives
▰ Contracting alone or with others in
carrying out purposes as organized
▰ Act as Independent Power provider
▰ Aggregation engage in business of
aggregation or retail electricity supplier
OTHER PRINCIPAL PURPOSE
Do Business But Not Limited to:

▰ Acquisition
▰ Building
▰ Construction Service
▰ Maintenance
▰ Operation Of:
 Necessary Buildings, Structures, Machinery
 Substations, Transmission Lines, Poles And Wires
 To Acquire Water And Flowage Rights
 To Acquire, Hold, Occupy Lands, ROW, Easements
BOARD OF
DIRECTORS
BOARD OF
DIRECTORS
JOEY L. TALON, CPA ATTY. JM EDWIN S.

CHAIRMAN OF THE AMANCIO, CPA
BOARD PRESIDENT
JOSELITO P. YAP BRENDA F. AMPOLITOD PLACIDA P. BALIOS ATTY. JANNIE ANN J.

DIRECTOR TREASURER SECRETARY DAYANDYAN, CPA
VICE PRESIDENT
MARRY CHAN U ENGR. GERARDO R. ENGR. JONATHAN S.

PIMENTEL OLEDAN REYNALDO S. GERNA
EMEPEÑO
DIRECTOR DIRECTOR DIRECTOR
DIRECTOR
SANTIAGO F.HAMTIG, ENGR. FERNAN PAUL.

ALLAN LANIBA EDITHA G. PERFECTO
JR. R. TAN
DIRECTOR DIRECTOR
DIRECTOR DIRECTOR
STOCKHOLDERS
DORELCO LEYECO II LEYECO III LEYECO IV LEYECO V SOLECO
BILECO SAMELCO I SAMELCO II ESAMELCO NORSAMELCO

STOCKHOLDERS’ EQUITY Php61,487,20
YOU CAN ALSO SPLIT YOUR CONTENT
6%
SOLECO, 3,846,200.00 ,
BILECO, 1,638,500.00 , 3% 0
SAMELCO II, 8,000,000.00 ESAMELCO,
, 13% 12,200,000.00 , 20%
SAMELCO I, 6,553,800.00 ,
11%
LEYECO I / DORELCO,
4,800,000.00 , 8%
LEYECO II, 1,000,000.00 ,

1%
NORSAMELCO, LEYECO III, 794,200.00 ,

4,200,000.00 , 7% 1%
LEYECO IV, 2,388,500.00 ,

4%
LEYECO V, 16,066,000.00
, 26%
“
ORGANIZATIONAL
STRUCTURE
Stockholders – 11 Electric Coops
BOARD OF DIRECTORS
Joey L. Talon, CPA

Chairman of the Board
Atty. Jose Michael Edwin S. Amancio, CPA

President
Atty. Jannie Ann J. Dayandayan, CPA

Vice President Internal Auditor
Placida P. Balios
Board Secretary
Brenda F. Ampolitod
Board Treasurer
Donald O. Velasco, CPA

General Manager
Donald O. Velasco, CPA

General Manager
FINANCE AND ELECTRICAL & POWER

ADMINISTRATIVE RELATED NON-ELECTRICAL
BUSINESS GROUP BUSINESS
SECTION BUSINESS GROUP GROUP
SUBSTATION
VIA/ AIRLINE
ACCOUNTING EQUIPMENT
TICKETING
TESTING
HUMAN RESOURCES &

SUPPLY CENTER PRINTING CENTER
UTILITY & DRIVERS
LINE FUELS STATION

CONSTRUCTION
“
Business Lines
“Substation Equipment
Testing Services
SUBSTATION EQUIPMENT TESTING
I. Power and Distribution Transformer

II. Power/Feeder Circuit Breakers
III. Feeder Circuit Reclosers
IV. Instrument Transformers
V. Lightning/Surge Arresters
VI. Disconnect Switches, Load Break Switches
and Cut-outs
VII. Protective Relays
VIII. Insulating Oil
BRANDED & TOP OF THE LINE TESTING TOOLS &

EQUIPMENT
TOTAL ACQUISITION PRICE OF TESTING TOOLS,
EQUIPMENT & ACCESSORIES – PHP 25 Million
SUBSTATION TESTING SERVICES PRICING

WITH RENAGMEC
BEFORE - 2018 & AFTER DECREASE/
RENAGMEC (average) SAVINGS
- 2018 & PRIOR
1. Preventive
Maintenance Services – Php500,000
(quotations from
Substation Equipment/
service providers
Php105,000 Php396,000
Power Transformer/ based in Manila)
Circuit Breakers/
2. Oil Filtering of Power Php500,000
Transformer (quotations from
Php80,000 Php420,000
NGCP, less 50%
discount)
Plus administrative &
mobilization cost
SUBSTATION TESTING – DAY & NIGHT
Operation's
Review
REPORT ON SUBSTATION
TESTING –
SERVED S/S 25
31%
UNSERVED S/S 11
REGION 8 ECs
SUBSTATIONS 36 69%
Outside of Region 8 ECs – NORECO I
& SIARELCO
“ REGIONAL SUPPLY CENTER
- Distribution Transformers, Conductors,
Poles & Pole Line Hardwares
Adopting the “Just-In-time” (JIT) Concept
STEEL POLES, CROSS ARMS, V- DISTRIBUTION TRANSFORMERS –

STEEL POLES – 30’, 35’, 40’ BRACE, ANCHORS CONVENTIONAL AND AMORPHOUS
INSULATORS AND SPOOLS
VARIOUS LINE HARDWARES
LINE CONSTRUCTION -
LESAMBEC
CONSTRUCTION
CORPORATION
Organized in 2019
PCAB registered in 2022
Category D
LESAMBEC CONSTRUCTION CORPORATION
Engaged in the following:
1. Construction of ECs Distribution Lines, SEP, NHA,

2. Construction of Distribution Lines and Installation of Distribution
Transformers of Sole Users (Private, Globe, Smart, Dito,
Common Towers owners, etc.)
The Line Construction Team & Equipment
1. Experienced in Typhoon Yolanda Power Restoration, SEP,

BLEP, and Distribution Line Enhancement
2. Project Employees while at EC; now regular under LCC
3. One Boomtruck and Drill Truck
LESAMBEC CONSTRUCTION CORPORATION

POWERING OF COMMON TELECOM TOWERS
FINANCIAL CONDITION
AND OPERATIONS
2021
Comparative Financial STATEMENTS OF FINANCIAL POSITION
Highlights As of December 31, 2021 and 2020
Comparative Financial STATEMENTS OF FINANCIAL POSITION

Comparative Financial STATEMENTS OF PROFIT AND LOSS
Jan to October 30,

2021
2022
Revenues 42,025,982.50 21,692,608 SNAPSHOT OF 2022 OPERATIONS

Costs of sales and services 31,636,568.75 14,976,505
REVENUES INCREASED BY 200% AS OF
Gross profit 10,389,413.75 6,716,103 OCTOBER 2022 COMPARED TO 2021
Other revenues 197,923.29 1,031,956
General and administrative
5,205,224.72 4,259,842
expenses
Finance cost 32,800.00 389,648
Income (Loss) before tax 5,349,312.32 3,098,569

Income tax benefit - -
(Loss) Income for the year 5,349,312.32 3,098,569

Other comprehensive
- -
income
Net (loss) income for the

5,349,312.32 3,098,569
year
NEW BUSINESSES - pictures
PRINTING CENTER
(OPERATIONAL)
EMCO FUELS
(FOR OPENING ON JAN. 2023)
RENAGMEC POWER CORPORATION, FRECOR 8 &

AGMEVEC – ALL IN ONE ROOF
PUROK 4, BRGY. SAN JUAN, STA. RITA, W. SAMAR

REGION 8 ECs
DEVELOPMENT CENTER
INAUGURATED IN 2021
April 8, 2021 Blessing of RENAGMEC Power Corp,

FRECOR 8 & AGMEVEC – in 3 hectares lot
REGION 8
ELECTRIC
COOPERATIVES
DEVELOPMENT
CENTER
 REGIONAL
TRAINING CENTER
 LINEMEN ACADEMY
 VOCATIONAL
TRAINING (TESDA)
 EC BRANCH OFFICE
(SAMELCO II)
 TO BE OPERATED
AND MANAGED BY
FRECOR 8 &
AGMEVEC
 APEC FUNDING OF
7 ECs – Php 20Million
Region 8 ECs Development Center
2023 STRATEGIC THINKING
WITH THE ECS OUTPUTS
November 15-16, 2022

Edgardo R. Piamonte, Peninsula Electric Cooperative, Inc.
(PENELCO) Compound, Roman Super Hi-Way, Tuyo, Balanga
City, Bataan
STRATEGIC INITIATIVES
REGION VII ELECTRIC COOPERATIVES’ ASSOCIATION (CEVECA), INC.
BANELCO CEBECO II
BOHECO I CEBECO IIII
BOHECO II NORECO I
CELCO NORECO II
CEBECO I PROSIELCO
1
2
3
4
Region Nine Electric
Cooperative
Association, Inc.
RENECA
Region: 9
Regional Association: Region Nine Electric Cooperative Association, Inc.
(RENECA)
Topic: Total Electrification - ZAMSURECO I
ISSUES AND EXPECTED TIMELINE TO
EC STRATEGIC INITIATIVES ECs AFFECTED
CONCERNS BE ADDRESSED
1. DEPENDENCE ON  Launched a Coop-funded line extension  The program started in late 2020 and will ZAMSURECO-I
GOVERNMENT program known as ZAMSURECO-I continue until the Household Electrification ZAMSURECO-II
SUBSIDY FUNDS Intensification of Household Electrification Level of ZAMSURECO-I reaches 100%. As ZANECO
(ZIHE). Under ZIHE, the Cooperative funds of October 2022, the household electrification ZAMCELCO
the construction of 3-5 pole line extension level of ZAMSURECO-I is at 93.8%.
projects funded by RFSC. As an integral part
of ZIHE, the program extends house wiring
loan to indigent households payable in six (6)
months.
 Launched “Rural Electrification Counter-  The program started in 2021 and will
parting Scheme” with Provincial continue in 2023.
Government on Select Sitios/Puroks
(unenergized). Under this scheme, the
Provincial government provides the poles and
transformers while ZAMSURECO-I provides
the other powerline materials and labor
services. The Barangay LGU assists in the
RoW easement and hole digging. Other
Barangay LGU provides limited funds for the
project.
5
Region: 9
(RENECA)
2. STRICT  ZAMSURECO-I fully supports and 2023 (variable) ZAMSURECO-I
IMPLEMENTATION OF recommends that a time-bounded DOE/DILG ZAMSURECO-II
LGUs ON GRANTING Policy Circular or an Executive Order (EO) be ZANECO
OF PERMITS AND issued just for the purpose of establishing a ZAMCELCO
PAYMENT OF FEES set of clear policy/guidelines on the granting
of LGU permits to the government’s total
electrification program. It is believed that this
initiative will encourage un-energized
households to apply for a connection and
hasten the achievement of the government’s
goal of 100% total electrification.
Region: 9
(RENECA)
3. ABSENCE OF ROAD  Coordinated with Municipal LGUs to prioritize 2023 and beyond ZAMSURECO-I
NETWORK, opening (widening) of access roads to ZAMSURECO-II
DIFFICULT TERRAIN, sitios/puroks with planned SEP projects. ZANECO
HIGHLY DISPERSED  The Solar PV Mainstreaming of DOE will be ZAMCELCO
HOUSEHOLDS, AND pursued by ZAMSURECO-I for those
PEACE AND ORDER households that are difficult to reach or
PROBLEM dispersed. The program’s, fee-for-service
scheme, where ZAMSURECO-I install,
operates and maintains PV solar home
systems and the consumer pays a one-time
participation fee and a monthly fixed fee
equivalent allows recovery of costs thus,
ensuring sustainability of the program.
DOE is encouraged to strongly pursue the

solar PV mainstreaming as a sustainable
strategy to achieve the government’s total
household electrification program.
6
Region: 9
(RENECA)
Topic: Renewable Energy/Renewable Portfolio Standard (RPS) – ZAMSURECO I
1. COMPLIANCE TO 1. ON-GOING PROCESS OF PROCURING OF 2023 ZAMSURECO-I
SECTION 4. 5MW RENEWABLE ENERGY SUPPLY ZAMSURECO-II
RENEWABLE WHICH WILL BE EMBEDDED IN ZANECO
PORTFOLIO ZAMSURECO-I’s DISTRIBUTION SYSTEM ZAMCELCO
STANDARDS (RPS)  On 5 November 2021, ZAMSURECO-I
OF RA 9513 conducted a Competitive Selection Process
(“CSP”) for the procurement of 5MW of
renewable energy supply which will be
embedded in ZAMSURECO I's distribution
system.
 The CSP resulted in a failed bid as only one
interested bidder participated despite due
publication and notice to the public.
 In view of the failure of its CSP,
ZAMSURECO I opted to apply for an
exemption from the conduct of CSP under
DOE Department Circular No. DC 2021-09-
0030 to be able to procure 5MW embedded
renewable energy supply.
Region: 9
(RENECA)
1. COMPLIANCE TO 1. ON-GOING PROCESS OF PROCURING OF 2023 ZAMSURECO-I
SECTION 4. 5MW RENEWABLE ENERGY SUPPLY ZAMSURECO-II
RENEWABLE WHICH WILL BE EMBEDDED IN ZANECO
PORTFOLIO ZAMSURECO-I’s DISTRIBUTION SYSTEM ZAMCELCO
STANDARDS (RPS)  On 22 February 2022, ZAMSURECO I was
OF RA 9513 issued a Certification of Exemption
exempting it from the conduct of CSP for the
5MW embedded renewable energy supply.
 On 28 March 2022, ZAMSURECO I and
LPEC entered into a Renewable Power
Supply Agreement (RPSA) subject of the
instant Joint Application.
 On 04 November and 11 November 2022, the
Public Hearing (Expository Presentation) of
the RPSA were conducted by the ERC.
7
Region: 9
(RENECA)
1. COMPLIANCE TO 2. RELIABILITY OF POWER SUPPLY, 2023-2024 ZAMSURECO-I
SECTION 4. VOLTAGE QUALITY, AND RPS
RENEWABLE COMPLIANCE
PORTFOLIO  Construction of 1MW Coop-owned
STANDARDS (RPS) embedded solar energy powerplant in
OF RA 9513 Dimataling, Zamboanga del Sur.
 ZAMSURECO-I Board Resolution was
passed on 25 November 2019, approving
ZAMSURECO-I’s plan to construct an
embedded 1MW solar powerplant.
 ZAMSURECO-I has already procured a
property for the location of the solar
powerplant.
 Conduct of FS/DE and other related activities
to be undertaken in 2023-2024.
Region: 9
(RENECA)
Topic: Liquidation of Subsidies – ZAMSURECO I
1. DELAYS IN 1. REVIEW AND IMPROVE PROCESSES 2023 ZAMSURECO-I
LIQUIDATION OF ZAMSURECO-II
SUBSIDY FUNDS a. Procurement Process ZANECO
 Procurement of powerline materials to be ZAMCELCO
utilized in 2023 will be undertaken in
December 2022.
 Strict compliance of delivery schedules by
suppliers.
b. Procurement of additional Construction-
related vehicles (e.g., Boom truck, etc.)
c. Augment Powerline Construction Personnel
 On-going linemen’s training to augment
ZAMSURECO-I’s construction crew.
d. Involve LGU in securing Right of Way.
e. Strengthen internal control systems.
8
Region: 9
(RENECA)
Topic: EC Rates – ZAMSURECO I
1. HIGH ELECTRICITY 1. Improve operational efficiency by targeting a 2022-beyond ZAMSURECO-I
RATES single digit system loss ZAMSURECO-II
 Strengthen anti-pilferage campaign ZANECO
 Construction of additional power substations ZAMCELCO
 Strengthen powerline maintenance of
powerlines.
 Rehabilitation of metering connections
 Rehabilitation of powerlines.
 Innovations (e.g., SCADA, MRBC system,
AMI, etc.)
2. Strengthen Review and Analysis of Power

Supply Mix (i.e., power supply nomination,
etc.)
3. Pursue embedded renewable energy
powerplant project.
4. Strengthen Information and Education
Campaign (IEC).
Region: 9
(RENECA)
Topic: EC Rates – ZAMSURECO I
2. TARIFF REVIEW AND 1. Strongly support initiatives that will push 2022-beyond ZAMSURECO-I
IMPROVEMENT OF for the review of EC tariff (RSEC-WR). The ZAMSURECO-II
REGULATORY expansion of basic electricity service to ZANECO
PROCESSES achieved 100% household electrification is a ZAMCELCO
prime government objective during the plan
period. ZAMSURECO-I and other electric
cooperatives, as implementing arm of the
program, however, must be fully equipped to
ensure viability of its operations.
Current study undertakings on RSEC-WR, TGP,

and RFSC by ERC must be hastened. As a
regulator, the Government, through ERC, must
continue to seek improvements in the regulatory
system.
Tremendous regulatory delay in the review and

approval of tariffs imperils the operations and
viability of electric cooperatives and the total
electrification program as well.
9
Region: 9
(RENECA)
Topic: Approval of Capital Expenditures (CAPEX) Projects - ZAMCELCO
Pending approval of CAPEX To inform and seek clearance with NEA and ERC, 2022 ZAMCELCO
Applications for the immediate implementation of all Major
• CAPEX 2019-2021 applied CAPEX, while waiting for the
• 18MW Rented GenSet commission’s decision and approval.
generation rate approva
Region: 9
(RENECA)
Topic: Activation of NGCP-WMPC Ancillary Services Procurement Agreement (ASPA)
– ZAMCELCO
Low Voltage Level and  Renomination to WMPC to meet franchise 1st Quarter of 2023 ZAMCELCO
waiting for the NGCP-WMPC voltage level requirements
ASPA Activation  Regular coordination with NGCP for ASPA
activation to ensure the integrity of the power
system
Rampant Pilferage leading to  Creation of the Energy Recovery Team for the For an immediate and sustainable solution ZAMCELCO
high non-technical losses correction and rehabilitation of energy meters
 Seek assistance from local government officials
10
Region: 9
(RENECA)
Topic: System Loss Reduction - ZAMCELCO
Massive Meter Replacement Obtain third-party contractor 1st Quarter of 2023 ZAMCELCO
Wide coverage with huge Obtain third-party contractor 1st Quarter of 2023
vegetation subject for line
clearing operations
Region: 9
(RENECA)
Topic: ZAMCELCO Realignment
Restructuring/ Realignment Job Analysis; Improvement of Recruitment and 1 st Quarter of 2023 ZAMCELCO
Program Formulation (EC Selection; Succession and Career Planning
have not undergone
restructuring for the past 5
years.
11
Region: 9
(RENECA)
Topic: Material and Equipment Loss (Low ABC) - ZAMCELCO
Material and Equipment Loss Seek guidance from NEA on the issue of low ABC 2022 ZAMCELCO
(Low ABC) Project Cost specially on Pole and Line Hardware
using previous NEA Price
Index, low costs leading to
failed bidding delaying
implementation of projects
Delayed Implementation of  Taskforce being created among Engineering 2022 (For the approval of an extension to
SEP due to unforeseen Area personnel December 2022)
circumstances and Typhoon.  NEA to investigate the issue of Low ABC. If
In addition, there were issues possible come up with a new and updated NPI.
with the procurement of  To define if ZAMCELCO can be categorized as
House wiring Materials due remote EC for it to include the cost of freight
to Low ABC. For concrete and handling as well as an indication of how
poles, separation of freight much freight and handling cost is allowable
and handling costs from the
cost of poles to avoid failure
of bidding.
Region: 9
(RENECA)
Topic: Material and Equipment Loss (Low ABC) - ZAMCELCO
Implementation of Phase-2  Letter request was sent to NEA for the 2022
Z3R Projects. Several consideration of a possible increase in
changes have been made in budgetary requirements.
the area, especially in the  TOR for the project was already prepared
condition and access roads.
Hence, redesigning the
distribution facilities is
suggested
12
Federation of Rural
Electric Cooperatives
in Region 8
FRECOR-8
Region: Region VIII

Regional Association: Federation of Rural Electric Cooperatives in Region 8
(FRECOR 8)
Topic: Total Electrification
1. Utilization of Limited Coop RFSC to
implement electrification projects based on
approved COB and AWP
2. Adaption of LGU and Coop

counterparties or partnerships in the 100% Energization as per Original Target: LEYECO V,
funding requirements of the proposed 5 Years NORSAMELCO
Lack or Limited electrification program
Fundings for Sitio and
Households 3. Availment of the Government subsidy
Electrification programs like NEA SEP and NHA including
the DOE NIHE and ER 1-94 programs
4.) To explore with some NGOs for granting

of Solar Home System to off-grid areas
under the REACH Program (Renewable 2nd Quarter of 2023 NORSAMELCO
Energy Access for off-grid Communities
and Households)
13
Region: Region VIII
(FRECOR 8)
Delayed fund releasing
from NEA due to a
possible failed biddings Prudent and thourough review and
considering that NEA will checking of Bid documents, material prices Annual / ATNA LEYECO V
only release the funds and lot scheduling
upon the receipt of
NOA/NTP
Organization of Barangay MCOOs to help
Delays in the
the Contractor and the Coop personnel
implementation of the
during project construction and
project due to locations Annual / ATNA LEYECO V
implementation such as but not limited to
and road access
ROW clearing, hole digging and material
difficulties
deliveries to the target site
Region: Region VIII

(FRECOR 8)
Request NEA to increase allocation for
Additional SEP.
allocation/funding for End of Quarter 2022 LEYECO IV
SEP Submission of projects for areas that need
Sitio Enhancement Program.
14
Region: Region VIII
(FRECOR 8)
Topic: Renewable Energy/RPS
Fast-Tracking on the Submission of the
Delayed releasing of
possible pre-release documents to the
funds for our 2MW
financial institutions (NEA and Private
Hydropower project from
Bank) November to December 2022
banking institution due to
numerous pre-releasing
Uniformity of the approval process flow for
requirements
the financial closure of both NEA and DBP
EPC Contractor's
request for increase of LEYECO V
their original awarded
Bid Proposal (2MW
Hydropower project) due Coordinate with NEA and DOE on the
November to December 2022
to sudden increase of availment of this matter.
Fuel, FOREX, cement,
and steel of about 40M+.
Need legal guidance and
advise on this concerns
Region: Region VIII

(FRECOR 8)
Request for an
assistance to avail the
DUTY-FREE importation
of RE facility project
Coordinate with NEA, DOE and BOI on the
items related to 2MW November to June 2023
availment of this matter.
hydropower project as
far as process and list of
requirements to be
complied LEYECO V
Request for an
assistance and guidance
from NEA and DOE to
avail a Free RE potential Engagement of Third Party provider and
November to December 2023
sources survey and evaluators free of charge
assessment within our
franchise area including
Feasibility Study.
15
Region: Region VIII
(FRECOR 8)
Feasible site for Coordinate with LGUs and land owners for
renewable energy possible sites in their respective
sources within the municipality. 1 st – 2nd Quarter of 2023
coverage area (hydro,
irrigation, solar) Survey for more possible sources of RE.
Coordinate with NEA- ORED, DOE, ERC

Technical
expertise/knowledge in LEYECO IV
the renewable energy
project implementation –
Coordinate with RE Experts/Developers 2nd- 4th Quarter of 2023
engineering design,
environmental studies,
costing, etc. also
regulatory requirements Attendance to RE Technical trainings and
workshops
Region: Region VIII

(FRECOR 8)
Joint ventures/private sector participation
Capitalization/Funding
for RE investment. Search for developers
for Renewable Energy 2 nd- 4th Quarter of 2023 LEYECO IV
and private investors. Search for grants
embedded project
and subsidies.
16
Region: Region VIII
(FRECOR 8)
Topic: Liquidation of Subsidies
1. Preparation and gathering of the
required documents by concerned/in-
charged personnel as early as the start of
the project implementation.
Difficulties on the
liquidation process due 2. Printing and securing of 3 original copies
to tedious documentary of the documents since other auditing ATNA and Annual LEYECO V
requirements and bodies also require for original copy of the
attachments documents.
3. Constant monitoring of the required

documents or attachments upon the start of
the project implementation
Region: Region VIII

(FRECOR 8)
Lacking Official Receipts Strict implementation of no O.R. to

in the attachments payment policy
Difficulties in identifying 1st Quarter of 2023 NORSAMELCO

the allowable and non Verify & Clarify with NEA and stricly
allowable items to be implement in accordance with NEA
included in the guidelines
liquidation
17
Region: Region VIII
(FRECOR 8)
Topic: ERC Rates/PSA/CSP
Pending NEAs feedback
of the endorsed TOR for
FRECOR 8 CSP for November 2022 to December 2022 FRECOR 8 ECs
Short Term and RPS
requirements
Review of GNPD Long
Term PPSA as to Actual
billed amount and
November 2022 to December 2022 FRECOR 8 ECs
parameters vs reflected
in the PPSA by NEA and
ERC
Revisiting the ERC approved tariffs and
Coop DSM Charges 2023 (Or if the generation rate will go down
comparing it to the present situations.
remain the same for a already to avoid possible consumer FRECOR 8 ECs
decade complaints)
Request for an increase if necessary
Region: Region VIII

(FRECOR 8)
Intensify information dissemination 1st Quarter of 2023
During the Energy Summit, FRECOR 8

submitted Resolutions to BBM, DOE and
NEA to look into the high generation rates
and evaluate the coal supply agreement.
Escalating and volatile Escalating and volatile
On-going CSP preparation for RPS
electric rate due to high electric rate due to high
Compliance and obtain a lower generation
generation cost On-going generation cost
rate.
Support APEC/Philreca Partylist on

Housebills that affect generation rates
Intensify MCO Education on Rates.
18
Region: Region VIII
(FRECOR 8)
ERC’s Decision on ERC’s Decision on
LEYECO IV’s Application LEYECO IV’s Application
Follow up ERC Before the end of 2022
for Adjustment in Rates for Adjustment in Rates
– Tariff Glide Path – Tariff Glide Path
Region: Region VIII

(FRECOR 8)
Topic: Cost Cutting/Prudent Financial Management
1. Conduct of thorough strategic and
operational planning activities with
corresponding timeline and needed
logistics that would fit to the requirements
for continuous service with MCOs.
High Coop Operational LEYECO V, DORELCO,
2. Procurement of needed important Annual
Cost and Expenses LEYECO IV
equipment, tools, materials only that are
essential to comply and to implement the
planned projects of the Coop. Procurement
can be done through online or direct
purchase from the Manufacturing
Company.
19
Region: Region VIII
(FRECOR 8)
3. Constant monitoring and evaluation of
day to day Coop expenses and request
especially expenses on fuel and other
expenses involving huge budget amount.
High Coop Operational LEYECO V, DORELCO,
Annual
Cost and Expenses 4. Assess the urgency of the projects. LEYECO IV
Forego projects that are not that urgent.
Prioritize expenses or projects that are
included in recent approved Cash
Operating Budget.
Irrelevent expenditures Prioritization of coop activities 1st Quarter of 2023 NORSAMELCO
Region: Region VIII

(FRECOR 8)
Minimize Travel (Only Relevant Ones)

Inflation (Ex. Rising Fuel
Depends on the Economic Situation of the
Price and other basic ESAMELCO
Country
needs)
Strict Petty Cash Monitoring
Extensive Disconnection Activities

Lower Collection
Efficiency Due to High 1st quarter of 2023 ESAMELCO
Gen. Cost Additional Collecting Agents for a more
convenient payment transaction
20
Region: Region VIII
(FRECOR 8)
Minimize and Prioritize Expenses (Only

Relevant Ones)
Tight Cash Position Improve Collection Effeciency As Soon As Possible ESAMELCO
Flexible payment schedules (installment) to

A/P Suppliers (Line Materials)
Requested the Local Legislators to make a

High Generation Mixed
Resolution to Pressure EDC to supply As Soon As Possible ESAMELCO
Rate
Renewable Energy
Region: Region VIII

(FRECOR 8)
Frequent request to NGCP in order to fast
tract the Construction of 69kV Line at As Early as December 2024
Lost Energy Sales due South (Guiuan) & North Area
to NGCP and Local ESAMELCO
Interruption Extensive line clearing & Line Distribution
Monthly
Maintenace
21
Region: Region VIII
(FRECOR 8)
Topic: Investment in Germane Business
Research and Development of potential RE
sources and deployment of distributed
generation business. One of which are the
following:
1. Solar Rooftops at LGU / Brgy Covered
High Generation Cost Court / Gym to be connected to the Coop
due to a single power distribution grid
supplier and 2. Wind Power project at Brgy Cabintan
10 Years starting 2023 LEYECO V
dependency on the area
WESM and Coal power 3. Solar Power facility within the coverage
plants area and located proximity to the existing
substations and distribution facility of the
Coop
4. BIOMASS project using available
biofuels abundant in the localities or
neighbooring provinces and islands
Region: Region VIII

(FRECOR 8)
5. Battery Energy Storage System (BESS)
High Generation Cost
together with the proposed project in items
due to a single power
2 and 3.
supplier and
6. Engagement of Power Supply Portfolio 10 Years starting 2023 LEYECO V
dependency on the
with different technology type to mitigate
WESM and Coal power
the risk of a rising fuel supply affected by
plants
the global market
Development of Coop owned Fuel Stations
either inside the Coop compound and/or
within the coverage area and enjoy the
discounted and cheaper fuel cost to to
Rising Fuel Cost for Day
direct and bulk orders from the main
to day Coop vehicle 2023 to 2025 LEYECO V
distributor.
usage
Lot in Tinag-an, Albuera has strategic
location for gasoline station if not be used
for solar farm.
22
Region: Region VIII
(FRECOR 8)
Counterfeit and Establishment of COOP Employees
substandard Electrical Cooperative to do the business venture
materials bougth by the who would sell a legit and within standard 2023 LEYECO V
applicants for for Coop electrical materials in which portion of the
service connection profit will be flowed back to the COOP
Increasing Cost of Joint venture with company providing

2023 LEYECO V
Operation electric vehicles and charging Stations
Diversion of funds from the least

prioritized activity to invest in a germane
Non-availability of capital 3rd Quarter of 2023 NORSAMELCO
business which would yield income to the
coop
NONITO M. LABIS, DVM

President
23
DR. NONITO M. LABIS, DVM
President
EC STRATEGIC EXPECTED TIMELINE EC's

ITEM ISSUES AND CONCERNS
INITIATIVES TO BE ADDRESSED AFFECTED
Price Index Request NEA to All EC's

1 1st Quarter 2023
Review
- No longer responsive
Download ER 1-94
2 Limited funds for SEP Project 1st Quarter 2023 All EC's
funds from DOE
Power supply stranded contract Negotiate IPP's to

MORESC
3 adjust the supply 1st Quarter 2023
- Shutdown of Industrial loads contract O-1
- No provision in the contract
the required adjustment
24
EC STRATEGIC EXPECTED TIMELINE EC's
ITEM ISSUES AND CONCERNS
INITIATIVES TO BE ADDRESSED AFFECTED
Request for
4 Higher Generation charges government 1st Quarter 2023 All EC's
intervention
Depleted working capital Secure loan to

5 1st Quarter 2023 All EC's
NEA
-Increasing Generation charges
Delayed refund of Pole

relocation affected by DPWH Continues follow-
6 Projects resulting to up to Regional 1st Quarter 2023 All EC's
additional expenses taken Offices of DPWH
from the general fund
E C S T R A T E G I C E X P E C T E D T I M E L I N E EC's
IT E M I S S U E S A N D C O N C E R N S
I N I TI ATI VES T O B E A D D R E S S E D A FF E C T E D
D e v e l o p m e n t of E C o w n e d
e m b e d d e d r e n e w a b l e S e c u r e l o a n to
s o u r c e s N E A a n d
7 1st Q u a r t e r 2 0 2 3 All EC's
- N o available f u n d s to C o m m e r c i a l
fina nce t h e equity B a n k s
r e q u i r e m e n t s
Insufficient Travel & Living R e q u e s t N E A to

8 1st Q u a r t e r 2 0 2 3 All EC's
A l l o w a n c e R e v i e w
P r o c u r e m e n t Guideline s
-A l l o w t h e E C s to include
R e q u e s t N E A to
finance cost ( to b e set b y
a m e n d t h e
9 N E A ) o n c a p e x p r o c u r e m e n t 1st Q u a r t e r 2 0 2 3 All EC's
p r o c u r e m e n t
o n t o p of t h e price i n d e x /A B C
guidelines
particulary c o n s u m e r
r e q u i r e m e n t s s u c h a s poles,
m e t e r s , S D W , t r a n s f o r m e r s if
t h e E C i n t e n d s t o p a y it in 3 - 5
ye a rs to m a x i m i z e its R F S C .
25
E C S T R A T E G I C E X P E C T E D T I M E L I N E E C ' s
I T E M I S S U E S A N D C O N C E R N S
I N I T I A T I V E S T O B E A D D R E S S E D A F F E C T E D
O N P R O C U R E M E N T G U I D E L I N E S
- U n d e r n e g o t i a t e d
p r o c u r e m e n t . A l l o w E c s t o u s e
1 0 t h e m a r k e t p r i c e a n d / o r P R O C U R E M E N T
o f f e r e d p r i c e i n s t e a d o f t h e G U I D E L I N E S 1 s t Q u a r t e r 2 0 2 3 A l l E C
N E A p r i c e i n d e x a s t h e r e a s o n A M E N D M E N T
o f f a i l u r e i s d u e t o t h e
i n s u f f i c i e n t p r i c e .
O N R E N E W A B L E P O R T F O L I O S T A N D A R D ( R P S )
- R P S m a n d a t o r y r e q u i r e m e n t
b e m a n d a t o r y w h e n t h e E C h a s
u t l i z e d a l l o f i t s c o n t a c t e d A l l E c s
R e q u e s t N E A t o
1 1 s u p p l y a n d / o r w h e n t h e E C i s h a v i n g
m a k e
n o l o n g e r o v e r c o n t r a c t e d 2 n d Q u a r t e r 2 0 2 3 o v e r
r e p r e s e n t a t i o n
w h i c h , s h o u l d t h e r e b e s u p p l y
b e f o r e t h e D O E
a d d i t i o n a l r e q u i r e m e n t it s h a l l C o n t r a c t
b e t a k e n f r o m t h e R e n e w a b l e
e n e r g y .
1 2 O N T H E R E S E T T I N G O F R S E C - W R
- D S M c o m p o n e n t o f t h e r a t e s
s h o u l d b e a d j u s t e d a n n u a l l y u n d e r R e q u e s t N E A t o
t h e b e n c h m a r k o f a v e r a g e i n f l a t i o n m a k e
r a t e w i t h o u t t h e n e c e s s i t y o f f i l i n g r e p r e s e n t a t i o n
t h e s a m e b e f o r e t h e E R C a s t h e
b e f o r e t h e E R C a s 1 s t Q u a r t e r o f
r e c o v e r y o f t h e o p e r a t i o n s o f t h e E C A l l E c s .
i s i m m e d i a t e , s i m i l a r c o n c e p t t o t h a t
c o - g o v e r n m e n t 2 0 2 3
o f t h e G R A M o r T R A M . T h i s i s t o e n t i t i e s s e r v i n g
a l s o h e l p t h e E C s c o n t i n u e i t s r e l i a b l e u n d e r t h e e n e r g y
s e r v i c e a n d o p e r a t i o n s . " A u t o m a t i c f a m i l y .
D S M r e c o v e r y m e c h a n i s m "
N E A t o E x t e n d 1 s t Q u a r t e r o f
1 3 E R C D e l a y e d C A P E X A p p r o v a l A l l E c s .
L o a n t o E C ' s 2 0 2 3
26
ISSUES AND CONCERNS EC STRATEGIC INITIATIVES (if any) Expected Timeline to be ECs Affected
Addressed
KAELCO’s request for Performed defense at NEA for the 4th Quarter of 2022 to 1st KAELCO, IFELCO
approval of the Management approval of the Management Tools Quarter of 2023
Tools for the Reorganization for the Reorganization
Comply with NEA’s instruction in
revising some provision of the Tools
KAELCO’s Request for the Performed defense at NEA for the 4th Quarter of 2022 to 1st KAELCO
simultaneous Approval for the approval of the Management Tools Quarter of 2023
Loan for the Proposed Special for the Reorganization
Retirement Package when the Comply with NEA’s instruction in
Reorganization will be revising some provision of the Tools
implemented
KAELCO’s Request for Passed resolution asking NIA- 1st Quarter of 2023 KAELCO
Assistance re: Joint Use of CRPIP to allow KAELCO to connect
NIA’s 69 kV Substransmission to its 69 kV Substransmission Line
Line at Pinukpuk, Kalinga to at Pinukpuk, Kalinga to supply
supply power to the 10/12.5 power to the 10/12.5 MVA
MVA substation that will be substation that will be transferred
transferred thereat thereat
ISSUES AND CONCERNS EC STRATEGIC INITIATIVES (if any) Expected Timeline to be ECs Affected
Addressed
SEP Subsidy Projects MR for the use of 2022 NEA Price 1st Quarter of 2023 KAELCO
evaluated using the 2019 NEA Index
Price Index that resulted to two Negotiated Procurement
failed bidding due to no
received bids or bids were
above the ABC
Request for Technical and Passed resolution for the Installation 1st Quarter of 2023 KAELCO
Financial Assistance to the of Solar Photovoltaic Panels in
Proposed Installation of Solar KAELCO’s Rooftops and submitted
Photovoltaic Panels in to NEA for approval
KAELCO’s Rooftops
Hiring of regular General Requesting NEA to Fast track the 4th Quarter of 2022 to 1st KAELCO
Manager process of hiring KAELCO GM Quarter of 2023
27
ISSUES AND CONCERNS EC STRATEGIC INITIATIVES EXPECTED TIMELINE TO ECs
BE ADDRESSED AFFECTED
Coordinate with LGUs for possible SEP funding 2023 CAR ECs
Coordinate with the barangays affected if they 2024 CAR ECs
can contribute from their IRA (Internal Revenue
Insufficient fund for SEP Allotment). This energization funding
implementation partnership was initiated by 6 barangays
previously.
Utilize ER1-94 fund 2024 CAR ECs
Coordinate with the Office of our Congressman 2023 CAR ECs
for SEP funding
Renewable Portfolio Joined the aggregation of Region 1, CAR, and 2023 CAR ECs
Standard (RPS) Bicol Region ECs for procurement of power
requirement from Renewable Energy source. This is to
secure MOPRECO’s RPS compliance.
Development of 1. Joint venture with LGU and local developer 2023 onwards CAR ECs
Renewable Energy (RE) of hydro
and investment in 2. Joint venture with all ECs of CAR
germane business
ISSUES AND EC STRATEGIC INITIATIVES EXPECTED TIMELINE TO ECs AFFECTED

Liquidation of subsidies Immediate implementation of the project with Within one year from CAR ECs
strict adherence to timeline. release of fund
Very high generation 1. To request our power provider to reduce 2022 onwards MOPRECO,
charge the contracted capacity. KAELCO
2. To source some of our power requirement
from local RE power generator.
3. Deferment of portions of power bill to
prevent price shock on the side of the
consumers. The deferred amount is
amortized for several months.
Cost cutting/Prudent Utilizing online payment – adapting paperless 2023 CAR ECs
Financial Management transactions. Streamlining workflow and
document processing to lessen overtime
work.
28
ISSUES AND EC STRATEGIC INITIATIVES Expected Timeline to ECs Affected
CONCERNS (if any) be Addressed
No approved CAPEX Request NEA for their Within one year 9 Upon IFELCO
Plan assistance NEA’s approval of the
requested assistance
Inspection of IFELCO Have performed inspection Contonuing IFELCO

big loads with NEA with NEA Engr. Alvin S.
Engineer Rosales
Settlement of Real Ongoing coordination with Continued coordination CAR ECs

Property taxes provincial Assessor to clarify the
composition of the properties
subjected to this tax
REGION I ELECTRIC COOPERATIVES

ASSOCIATION (RECA I)
29
Region: I
Regional Association: Region I Electric Cooperatives Association
(RECA I)
Topic : Total Electrification
EC STRATEGIC INITIATIVES (if EXPECTED TIME LINE TO BE

ISSUES AND CONCERNS ECs AFFECTED
any) ADDRESSED
Coordination or request DOE
ER 1-94 Subsidy Funds
for possible return to ECs of
diverted for COVID-19
the ER 1-94 fund and also As soon as possible All ECs
Financial assistance/Funding
request for additional funding
for LGUs
of projects
Request NEA to assist ECs to
follow-up to DOE on the
immediate release of the
Delayed release of previous
allocated fund under ER 1-94 1st Quarter of 2023 All ECs
ER 1-94 allocated fund to EC
as host EC of GenCos within
the respective franchise
area/province.
Coordinate closely with LGUs
for assistance on:
Insufficient funds for SEP
1st Quarter of 2023 All ECs
Household recipients 1. LGU permits
2. LGU permit fees
Region: I
Regional Association: Region I Electric Cooperatives Association (RECA I)
Topic : Renewable Energy (RPS)
EXPECTED TIME LINE

ISSUES AND CONCERNS EC STRATEGIC INITIATIVES (if any) ECs AFFECTED
TO BE ADDRESSED
Limited Capacity allocated for the
Request to increase the capacity based on the
Renewable Energy Exemption for the ASAP All ECs
demand requirement of ECs to regulating agencies
conduct of CSP (COE-CSP)
Possible Generation price cap for every Request ERC to establish a price cap methodology
ASAP All ECs
RE Technology for RE generators/sources
No available tools and trainings for the

NEA to conduct trainings and seminars for DIS
preparation of Distribution Impact Study 1 st Quarter of 2023 All ECs
preparation
(DIS)
Financial constraint for the construction Include in the CAPEX project application with ERC
Next CapEx filing All ECs
of Renewable Energy Plant by the ECs in order to secure loan
Delayed Approval/Action of ERC on Request NEA to request ERC to fast track the
CAPEX projects (once approved, the evaluation and approval of CAPEX project ASAP All ECs
cost of project is no longer responsive) application
RE requirement to be Included in the PSPP for CSP
RPS Compliance NEA to come up with Regional focal person ASAP All ECs
Diversification of power and to look into embedded

power generation
30
Region: I
Topic : Liquidation of Subsidies
EXPECTED TIME LINE TO

BE ADDRESSED
Close coordination with NEA Audit and COA
Timely Submission of documents pertaining to the subsidy
Audit of Subsidy Funds funded projects Bi-annual (2022-2024) All ECs
Suggest COA to conduct audit of the subsidy releases based
on the submitted documents of EC’s to NEA.
Request NEA to consider the following as amendment to NEA
Memo 2013-022 regarding Excess Subsidy :
a. Below P100,000 shall be returned to NEA 3 months (not
ASAP (Existing or for
Unexpended/excess subsidy funds one month) after NEA Final Inspection and Acceptance to
give more time to reconcile the as-built vs. accounting of future subsidy funded All ECs
not returned to NEA
funds projects)
b. Regardless of the amount excess funds, it can be
realigned to other project/s subject to NEA approval (not
only P100,000.00 and above)
Request for possible Reduction of Engineering and 2023 / For future
Engineering Administrative
Administrative Overhead (EA0) to 1.5% to increase the net Subsidy Funded All ECs
Overhead
amount of subsidy Projects
To ensure that the listed beneficiaries are actually willing to
2023 / For future
Condition for the energization & be connected/ energized before allocation of budget. The
Subsidy Funded All ECs
liquidation of Subsidy funds list of beneficiaries to be submitted should reflect the
Projects
signatures with the confirmation of the Barangay Captain.
Region: I
Topic : EC RATES/PSA/CSP
ISSUES AND CONCERNS EC STRATEGIC INITIATIVES (if any) EXPECTED TIME LINE TO BE ADDRESSED ECs AFFECTED
Request the power suppliers to extend the period of

On going discussion with GENCOS All ECs
granting Prompt Payment Discount (PPD).
Talk with the suppliers for possible mitigating measures like

On going discussion with GENCOS All ECs
reducing the capacity.
Strengthen the information drive/educational campaign to

MCOs for them to better understand their electricity bills, like
On going implementation All ECs
ABC/SB meetings, barangay forums, radio announcements
and posting to social media sites.
Increasing cost of power because Request NEA to assist in the information/education ASAP All ECs
of high generation rates. campaign on the electric bill charges
Attain a single-digit System Loss (SL) On going implementation / Monthly All ECs
Monitor the monthly pass-through charges, like generation,
On going implementation / Monthly All ECs
transmission, and universal charges.
Conduct usual review on the power bill issued by Generators

On going implementation / Monthly All ECs
specially on the Financial Indices used by GENCOs
Possible Aggregation of Power Supply Requirement to solicit

Selected ECs within the
lower generation rate. Draft PSAs shall also be submitted to On going
Region
NEA.
Diversified source of power (Embedded RE supply/source) ASAP All ECs
31
Secondary price cap of P32/kwh in the Possible lowering of the secondary price
ASAP WESM direct participants
market (WESM) cap of P32/kwh in the market (WESM)
Coordination with the regulating agencies

Basic TOR & PSA (NEA/ERC) and Come-up with a basic TOR As the need arises All ECs
and PSA template for CSP.
Request National Government for the

possible Suspension of Universal Charges,
Government Taxes ASAP All ECs
FIT-All and reduction of VAT % on the
power bill.
No ERC decision yet for the applied Ask assistance to NEA and PHILRECA for ECs with no decision yet on
ASAP
under-recoveries for the year 2017-2019. follow-ups to the ERC. OUR filing
No ERC decision yet for the applied TGP

Ask assistance to NEA and PHILRECA for
applications for the 1st and 2nd regulatory ASAP All ECs
follow-ups to the ERC.
period.
Region: I
Topic : COST CUTTING/PRUDENT FINANCIAL MANAGEMENT
EXPECTED TIME LINE

TO BE ADDRESSED
Delayed approval of the Tariff Seek assistance of NEA for the approval
Glide Path (TGP) Application 2023 All ECs
to ERC Review of the previously approved DSM by the ERC
NEA to suspend the KPS the one month working capital requirement,
collection efficiency parameter and profitability standard or a net
margin before RFSC.
NEA Regulatory Office to work with ERC to accelerate the automatic
Increasing operational recovery of Generation and Transmission Adjustments
expenses due to rising fuel
Suspend the compliance with the Loan Conditionalities like Collection ASAP All ECs
prices and the effect of
inflation Efficiency
Strict monitoring of expenses which should be within or below the
approved budgetary requirements.
Initiate fuel expense saving activities
Initiate utility and energy saving measures
Request a working capital loan to help coops improve its general fund
Increasing Cost of Power ASAP All ECs
Full availment of discounts offered by the GENCOs.
Monitor the monthly non-power cost. On going activity
Prioritization of expenses and projects to be implemented. On going activity
Diminishing available cash All ECs
Limit charging of overtime pay On going activity
Avail a Stand-by Letter of Credit/Short-Term credit line. ASAP
32
Region: I
Topic : INVESTMENT IN GERMANE BUSINESS
EXPECTED TIME LINE TO

BE ADDRESSED
Possible formulation of Guidelines for other businesses
First Quarter of 2023

Request NEA to issue guidelines and issuances that would
Policies/Guidelines in the
encourage EC’s to venture into other business like solar
investment of ECs to other All ECs
installation and sale of solar panels instead
businesses.
Request NEA to come with guidelines on investing to Energy

Vehicle Charging Infrastructure
Trainings/seminars in handling
Request NEA to Conduct Trainings/ Seminars ASAP All ECs
other businesses.
Numerous requirements by
Government agencies in-
Request NEA to request ERC and other government agencies
charge in the supervision and ASAP All ECs
involved to simplify the standards for EC business ventures
approval for EC business
ventures
STRATEGIC
THINKING NEA
and EC
Collaborative
Seminar
Region 4 A
ASTEC
ALLPPT.com _ Free PowerPoint Templates, Diagrams and Charts
33
• Newly Created Sitios Or development of another sitios

from existing
• Insufficient fund for SEP Implementation
• ROW problem in SEP implementation and line upgradi
ng
• Electrical Permit
• PV Solar Home System
( Far flung safety and implementation )
• Request for inclusion in the NEA SEP data base

and TEMP (DOE)
• Study of ER 1-94 as other source of funds
• IEC on concerned brgys and RA 11361
• Coordination with MUn. Engineers
• Close coordination with NEA, LGU
34
Renewable Energy/ RPS
• REC Short fall

• REC Requirement for off grid
• RE Embedded Solar ( Problem on Connection point de
termination in the distribution system due to lot restri
ction or availability )
• RE Funding source requirement
• Lack of sufficient know how
• Conduct CSP ( review of TOR NEA , DOE )

• Focus group discussion and meeting with probab
le stakeholder
• Feasibility study assisted by technical expert
• Consider concessional loan from NEA for EC
RPS project Compliance
• NEA and DOE lead capacity building of EC
Personnels ( e.g. similar to Competency programs )
35
Liquidation of Subsidies
• Documentation Concerns
• Proper coordination with all concerned department

• Data base management
36
EC Rates
• Multiple Taxation
• High generation Cost
• Depleted Working Capital
• System Loss above Cap
• Capex approval
• Support house bill in relation to lowering of tax for ele

ctric bills
• Optimization of generation mix
• Information dissemination on energy conservation
• System loss reduction implementation
( Capacity project Implementation )
• Study shortened over and under recovery
• NEA Assistance on Capex project approval
37
Cost Cutting
• Increase in operating Cost

• Insufficient fund to pay power supplier
• Continous implementation of energy management

program ( LED lighting fix, Air con system focus on
low hanging fruits savings )
• Vehicle fleeting ( revisit fuel consumption consider
at times gasoline is lower than diesel /also pooling )
• maximize flexi time
• Implement proper procurement planning
38
Investment Germane
Business
• Idle Funds whenever available

• REC Requirements
• Coordination with bank for investment opportunities

• Consider possible joint venture
39
Region 4-B electric
cooperatives presentation
BISELCO ORMECO
LUBELCO PALECO
MARELCO ROMELCO
OMECO TIELCO
Issues and Concerns EC Strategic Initiatives Expected Timeline to ECs Affected

be Addressed
Request for additional SEP/BLEP 31 December 2022 OMECO
funding from NEA
Un-energized sitios with To appeal NEA & DOE to Consider 2nd quarter of 2023 TIELCO
less than 10 consumers allocating funding for solar home
system for sitios with less than 10
consumers to attain the target of
local total electrification road map
Insufficient funds for SEP Coordinate with the LGUs for 1st Quarter of 2023 ORMECO
Projects possible funding
Conduct a study on ER 1-94 as
other sources of funds
40
be Addressed
Far-flung sitios Implement most viable RE Last Quarter of 2023 ORMECO
source for the area
Electrification of Brgy. Talaotao, Coordinate closely with LGU for LUBELCO
December 2022
Looc, Occ. Mindoro proper plant site
Insufficient fund for Coordinate with NEA/ DOE re: LUBELCO
December 2022
rehabilitation of distribution line possible subsidy fund
One (1) of our Un-energized sitio MARELCO
is an islet in which the claims
that they are informal settlers
and we are not given the permit provide individual Solar Home
3rd Quarter 2023
to electrify the area thru line System for every household
extension or mini-grid which will
utilize the portion of land of the
area
Renewable energy/rps
Issues and Concerns EC Strategic Initiatives Expected Timeline to be ECs Affected
Addressed
OMECO accept 6 MW Biomass Preparation of needed OMECO
Power Plant offer of Prudenzia documents for
Biopower Corporation. application for the
issuance of Certificate of
Exemption
RPS Compliance Encourage the use of RE sources in 1st Quarter and 3rd
power supply procurement Quarter of 2023
Construction/ putting up of Seek Technical / financial assistance LUBELCO

LUBELCO owned Renewable from NEA & ROMELCO (GM Rene 1st Quarter of 2023
Energy Project Fajilagutan)
41

Addressed
PSA with NAPOCOR is due on LUBELCO
December 2023, what will be the rate
EC RATE/ PSA 1st Quarter of 2023
impact if there is NAPOCOR at the time
of LUBELCO Renewable Energy
Lack of Technical Expertise to
make feasibility studies on
Seek the assistance of DOE and NEA 1st quarter 2023 MARELCO
possible RE sources other
than Solar
Issues and Concerns EC Strategic Initiatives Expected Timeline ECs
to be Addressed Affected
Application for RE Service Contract – ROMELCO
Coordinate closely with
there is no distinction on the & other ECs
DOE/Continuously follow-up with the
documentary requirements in the
DOE for the amendment/enhancement
application for RE service contract. December 2022
of application for RE Service contract to
Small RE facilities has to comply with
simplify the the application process of
the same requirement of the Large RE
small RE Projects.
facilities
Challenges in sourcing for equity ROMELCO &
Financing for RE Projects. other ECs
Development banks and Donor Apply EQUITY LOAN with the NEA 1st Quarter of 2023
institutions requires at least 10% equity
for the RE Projects.
Application and approval of tariff, To support the AIEC in the filing for Rule ROMELCO &
specially for the off-grid ECs, is a Making for Off-Grid RSEC-WR with the 1st Semester of 2023 other ECs
difficult and a long process. ERC
Insufficient technical knowledge of EC ROMELCO &
personnel for the installation, Request NEA and other training other ECs
1st Semester of 2023
operation, and maintenance of RE institutions to develop RE training
Facilities program for ECs
42
Liquidation of Subsidies

Addressed
Completion of December 31, 2022 OMECO
Documents for
Liquidation for Tyhpoon
Quinta subsidy is on
going
2021 SEP Project Target completion is on OMECO

implementation is December 31, 2022
ongoing. while liquidation is
target to complete by
March 2023
Ec rates/psa/csp
Issues and Concerns EC Strategic Initiatives Expected Timeline ECs Affected
to be Addressed
Enforce the power supplier to operate 31 December 2022 OMECO
and/or implement SAMARICA PSA to
ensure continuous and uninterrupted
power supply
Extensive period of Appeal with regulatory agencies to shorten Last quarter of 2022 TIELCO
regulatory review of the period of review and approval of TORs
submitted TORs and PSA and PSA
Costly and long process of For Off-Grid ECs to jointly file rate 1st quarter of 2023 TIELCO
filing of petition for rate adjustment providing a uniform rate for
adjustment for off-grid similarly situated ECs.
areas.
Timeline in the approval All other planning anchor to the Target date of MARELCO
and implementation of completion/energization of operation year 2025
Quezon-Marinduque Interconnection.
Interconnection thru
submarine cable
43
Ec rates/psa/csp
be Addressed
Delayed of NPP Subsidies Immediate BISELCO
Delayed Approval of PSA Immediate BISELCO
for 4 years
Use of the operational Clarify the same to the Honorable Q1 of 2023 ORMECO
definition of ‘Billing Commission
Determinant’ in RE
sources Evaluate impacts to financial position
High energy rates Perform regular rate evaluation Q2 of 2023 ORMECO
Prevent emergency power procurement

through timely expansion scheduling
Absence of penalty Use of adjustment formula in the Continuing program ORMECO
provision in the existing computation of appropriate Billing
Power Supply Determinant
Agreements
Cost cutting/ prudent financial

management
be Addressed
Automation and/or migration to Start of the year 2023 OMECO
New Electronic Billing System
Strengthen collection efficiency Start of the year 2023 OMECO
and system loss reduction
program and/or activities
High operational Implement austerity measures in Continuing program ORMECO
expense fuel, paper, and energy
consumption
44
Investment in germane business
Issues and Concerns EC Strategic Initiatives Expected Timeline ECs Affected
to be Addressed
Entered MOA with Prudenzia On-going OMECO
Biopower Corp. that they allow negotiation
OMECO invest in the renewable
energy project (6mw Bioamass
Power Plant
Significant variance between Petition for a review of the Before the end of ORMECO
NEA and market price indices published NEA Price Index 2022
Legality of MARELCO to involve MARELCO

its self-in other business like
Review of its existing by-laws March 2023
selling of building wiring
materials and the like.
STRATEGIC THINKING
2023
REGION III - CLECA
45
| CLECA
| TOTAL ELECTRIFICATION
46
| RENEWABLE ENERGY/RPS
TRIANGLE
47
TRIANGLE
| LIQUIDATION
48
| EC RATES/PSA/CSP
TRIANGLE
| EC RATES/PSA/CSP
TRIANGLE
49
| EC RATES/PSA/CSP
TRIANGLE
| INVESTMENT ON GERMANE BUSINESS
50
NELECA
2023 Strategic Thinking
November 2022
NELECA
Batanes Electric Cooperative, Inc.
(BATANELCO)
ISSUES AND EC STRATEGIC INITIATIVES EXPECTED TIMELINE TO

CONCERNS ECs AFFECTED
(if any) BE ADDRESSED
Workback on records (target
sitios vs energized sitios)
Unreconciled records for
including updating of 2023 BATANELCO
Sitio
beneficiaries and subsequently
harmonize with that of NEA’s
 Capacitate point-person
and develop own study on
RE in the franchise area
 Acquire consultancy from
experts and experienced
Compliance to RPS ECs 2023 BATANELCO
 Partner with financial
institutions for funding of a
feasibility study and
project implementation
eventually
51
NELECA
Batanes Electric Cooperative, Inc.
(BATANELCO)
ISSUES AND EC STRATEGIC INITIATIVES EXPECTED TIMELINE TO

(if any) BE ADDRESSED
EC Rates Filing of CAPEX Projects 2022 BATANELCO
 Review of original PSA

PSA with NPC 2022 BATANELCO
 Renewal of PSA with NPC
NELECA Nueva Vizcaya Electric Cooperative

(NUVELCO)
ISSUES AND EC STRATEGIC EXPECTED TIMELINE TO BE

INITIATIVES (if any) ADDRESSED
PLGUs/ LGUs/ BLGUs for 1st quarter of 2023 NUVELCO
implementation
possible funding
Insufficient funds for
PLGUs/ LGUs/ BLGUs for 1st quarter of 2023 NUVELCO
Rehabilitation of lines
possible funding
Review of TPBAC policy on
Renewal of PSA 1st quarter of 2023 NUVELCO
CSP
Technical Assistance to
RPS Compliance conduct study on possible 1st quarter of 2023 NUVELCO
RE resources
52
NELECA Cagayan I Electric Cooperative, Inc.
(CAGELCO I)
ISSUES AND CONCERNS EC STRATEGIC INITIATIVES EXPECTED TIMELINE

ECs AFFECTED
(if any) TO BE ADDRESSED
Insufficient Fund for Split the Sitios for next year's 1st Quarter of 2023
Distribution Line Extension application and implementation
CAGELCO I
(DLE) under Sitio Electrification
Program (SEP)
No Funding Source for Stand- Seek for possible Joint 1st Quarter of 2023
alone Home System (SHS) under Venture/Private Partnership/
CAGELCO I
Photo-Voltaic SHS on Remote Subsidy
and Far Flung Areas
No Funding Source for Regular Conduct study on ER-194 for
Connection (RC) under National possible source of funding
Intensification of Household
Electrification (NIHE) 1st Quarter of 2023
CAGELCO I
beneficiaries Coordinate closely with LGU for
possible source of funding
NELECA Isabela-I Electric Cooperative, Inc.

(ISELCO-I)

ECs AFFECTED
There are major challenges in 1. Enhancement of the existing 1st Quarter of 2023
the implementation of existing programs of the government such
programs of the government as Sitio Electrification Program
(SEP, BLEP) such as but not (SEP) and Barangay Line
limited to: Enhancement Program (BLEP)
a. Compliance requirement with 2. There must be close NELECA DUs/All DUs
the Local Government Units coordination with the LGU for
b. Difficulty in securing possible waiver of some
barangay certifications for some requirements for the speedy
unenergized sitios implementation of the said
programs.
Coordinate closely with LGUs for
possible funding; Conduct study or 1st quarter of 2023 NELECA DUs/All DUs
implementation
ER 1-94 as other source of funds
53
(ISELCO-I)

ECs AFFECTED
Coordination with the generating
facilities within the coverage area
Utilization of the fund coming and development of a workplan NELECA DUs/All
1st quarter of 2023
from ER1-94 Program for its implementation; DUs
Coordinate with NEA for the
drafting of Guidelines
Incremental Fuel Charges by Coordinate with ERC/NEA for 4th Quarter of 2022 & NELECA DUs/All
Generation Companies proper treatment and/or action 1st Quarter of 2023 DUs
Show cause on system loss Implementation of system loss 4th Quarter of 2022 & NELECA DUs/All
reportorial requirement segregation through a system 1st Quarter of 2023 DUs

(ISELCO-I)
Topic: Renewable Energy

ECs AFFECTED
EC to conduct continued
collaboration with policy makers,
industry experts and
stakeholders through
conferences, meetings, and 1st quarter of 2023 NELECA DUs/All DUs
various discussions sharing EC
Lack of comprehensive energy
experiences citing hindrances,
sector planning (different
pros and cons that could help in
stakeholders in the energy
the planning stage.
industry)
ECs to conduct a study looking
for provisions in the law
(Renewable Enery Act) that
1st quarter of 2023 NELECA DUs/All DUs
would be pro and cons to Ecs
that would help in the energy
sector planning.
54
(ISELCO-I)

ECs AFFECTED
1. Ensure proper accounting of
the subsidies.
2. Ensure that the documents
required for liquidating the
subsidies are complied with.
Difficulty in complying 3. Ensure that proper business
documentary requirements procedure is being followed
during the implementation of the
program such that there would
be no problem in complying with
the documentary requirements.

(ISELCO-I)
Topic: EC Rates/PSA/CSP

ECs AFFECTED
Reforms in the Energy Industry
are necessary. ECs may
participate in various
discussions to inform policy
makers on the underlying
reasons behind why energy
High Electricity Rates in the
prices remain high in the
Philippines
Philippines.
Conduct thorough
study/analysis before entering
into power supply contracts
considering external economic
factors like impacts of foreign
exchange and oil import prices.
55
(ISELCO-I)
Topic: EC Rates/PSA/CSP

ECs AFFECTED
Conduct study (cost-benefit analysis) on

utilizing different types of energy sources
or energy diversification including
geothermal, solar, hydropower, wind and NELECA DUs/All
1st quarter of 2023
biomass to ensure business continuity DUs
and stable power prices. Various studies
says that renewable entry in the market
High Electricity Rates in the may cut electricity rates by 30%.
Philippines The EC must have diverse source of
power suppliers. It must have contracts
with generating company using
renewable sources as well as coal-
powered generating plants. In the event
that the materials utilized by coal-
powered generating companies
increases, the rates of the EC will not be
subjected to so much exposure.

(ISELCO-I)
Topic: Cost cutting/Prudent Financial Management

ECs AFFECTED
1. The EC must refrain from
investing in projects that are
non-value adding. NELECA DUs/All
Project Implementation 1st quarter of 2023
2. The EC must strictly abide DUs
with its year to year budget.
56
(ISELCO-I)
Topic: Others

ECs AFFECTED
Coordination and completion of
Franchise Renewal of the
all the requirements needed for Until 2023 ISELCO-I
Cooperative
the franchise renewal
Inclusion of Electric Cooperative NELECA DUs/All
Road right of way 1st quarter of 2023
in the planning of ROW DUs
NELECA Quirino Electric Cooperative (QUIRELCO)

1. Total Electrification
(Level of Energization)
Coordinate with PSA Quirino 2nd quarter of 2023 QUIRELCO
a. Unupdated Potential for the updating of Potential
Consumers from the PSA Consumers data.
2. Renewable Energy
Power Source
The RPS compliance is
a. The EC has the option to
computed initially in 1%.
choose the yearly
incremental percentage 2023 QUIRELCO
compliance of the RPS.
Encourage investors to
develop RE Sources
b. Limited Renewable Energy
supplier
57

3. Liquidation of Sitio
Electrification Program
(Fully Liquidated)
4. EC Rate (CSP)
a. Pending signing of Procure power supply at the

2023 QUIRELCO
contract due to high cost of Wholesale Electricity Spot
coal fossil fuel Market; Invest in Embedded
Renewable Energy

5. Cost Cutting/Prudent
Financial Management
a. Uncontrollable increase in Fuel efficiency strategies like

the cost of fuel monitoring the mobility of
vehicles through well-
Immediately
planned schedule of
activities and strictly
implementing the policy on QUIRELCO
garage system
b. High cost of maintenance
Upon approval of the CAPEX
for fully depreciated vehicles Sale of old vehicles and
application
purchase new vehicles
needed for operation
as depreciation cost is lower
than maintenance cost
58

6. Investment in Germane
Business
a. Limitations of ECs in the Collaborate with Regional 1st quarter of 2023 QUIRELCO
issuance of NEA clearance and National Associations to
for investment in germane request for
business the amendment of the
investment policy
2023 STRATEGIC THINKING WITH ECs

(Regional President’s Report)
ASSOCIATION OF BARMM ELECTRIC COOPERATIVES (ABEC)
(LASURECO, MAGELCO, BASELCO, SULECO, SIASELCO, TAWELCO, and CASELCO)
59
UPDATES
 The EC Members of the Association of BARMM Electric Cooperatives (ABEC) has
been convened by the Ministry of Environment, Natural Resources, and Energy
(MENRE) for several meetings and programs.
 The ABEC Members recently gathered for the Spatial Analysis Infrastructure
Improvement Planning for Electric Cooperative. Will resume on November 28 to
December 2, 2022 at Davao City for Part III.
 The ABEC Members attending the 2023 Strategic Thinking with the Electric
Cooperatives are LASURECO, SULECO, MAGELCO, TAWELCO, and BASELCO.
COMPLIANCE
• In compliance with the NEA Corporate Planning Advisory dated November 08,
2022, the ABEC Regional President informed the ABEC Member for their individual
compliance.
60
TOTAL ELECTRIFICATION
NO ISSUES AND CONCERN EC STRATEGIC INITIATIVE (IF EXPECTED AFFECTED ELECTRIC COOPS
. ANY) TIMELINES TO BE
ADDRESSED
1. Insufficient Fund for SEP Coordinate with NEA, LGUs,

Implementation PLGU, and the BARMM MENRE for
Funding;
Coordinate with Host 3rd Quarter of 2023 All ECs
Communities in the Franchise
Area for the ER 1-94 benefits;
2. Low Energization Level Submitted to NEA Budget Request

for 38 Sitios for SEP Project 4th Quarter of 2022
SULECO
Submitted to DOE for the
Electrification of 5,000 2nd Quarter of 2023
beneficiaries thru Solar PVM
Coordinate with NEA, LGUs,
PLGU, and the BARMM-MENRE for
2nd Quarter of 2023 TAWELCO
Funding;
Submitted Request for SEP

4th quarter of 2022 BASELCO
Project from NEA
Submitted Budget Request for
1ST quarter of 2023 MAGELCO
BLEP and SEP Projects to NEA
RENEWABLE ENERGY / RPS

ADDRESSED
1 Unavailability of Data for Coordinate with the Department

Complete Compliance on the of Energy – Renewable Energy
Renewable Portfolio Standard Management Bureau for
1st Quarter of 2023 LASURECO
(RPS) assistance specifically on the
alternative data for the RPS
input
61
LIQUIDATION OF SUBSIDIES
NO. ISSUES AND CONCERN EC STRATEGIC INITIATIVE (IF ANY) EXPECTED TIMELINES AFFECTED ELECTRIC COOPS
TO BE ADDRESSED
1 Unavailability of Documents Coordinate with Accounts

and Data for Liquidation of Management and Guarantee
3rd Quarter of 2023 LASURECO
Previous Releases Due to 2017 Division of the NEA for assistance
Marawi Siege and guidance
2 Unliquidated SEP Projects Coordinate with Accounts
Resulting to Non-Releases for Management and Guarantee
Subsidy Division of the NEA for assistance
and guidance
Alleged unexpended amount Reviewed the details of COA
for the previously released and Observation on the unexpended
liquidated subsidy projects amount on previous 2011-2015
from 2011-2015 subsidy project and requested 1st Quarter of 2023
for reconsideration of COA for
the re-submission of lacking BASELCO
documents.
Discussed through Management
to properly follow the prescribed
NEA Guidelines to avoid the
occurrence of the same
Unavailability of supporting Coordinate with Accounts
documents of JICA funded Management and Guarantee
1st Quarter of 2023
projects and previous subsidy Division of the NEA for assistance MAGELCO
releases and guidance
EC RATES / PSA / CSP

NO. ISSUES AND CONCERN EC STRATEGIC INITIATIVE (IF ANY) EXPECTED TIMELINES AFFECTED ELECTRIC COOPS
TO BE ADDRESSED
1 Delayed Application for Power Independent Audit of the Financial

Supply Agreement and CSEE with Statement for the year 2019, 2020,
1st Quarter of 2023 LASURECO
PSALM for lacking requirements and 2021 by a NEA Accredited
Auditing Firm
2 Delayed Application for EC Rates Conduct Data Gathering as per
Adjustment Due to Unavailability requirement by the Energy
4th Quarter of 2023 LASURECO
of Necessary Data Regulatory Commission (ERC) –
Ongoing
4 Pending approval of applied DSM Submitted and undergone hearings
Rate Adjustment as mandatory and necessary
4th quarter of 2022 BASELCO
through ERC Guidelines
5 Under-Rated DSM Rate Since 2005, no rate increase for DSM.

Preparing the needed documents for
instant application and conduct 1st Quarter of 2023 SULECO, MAGELCO & TAWELCO
yearly simulation of its DSM
Revenue.
6 Unstable Power Supply In the process of CSP Preparation.
Submitted its DDP and PSPP to DOE 1st Quarter of 2023
for final approval. SULECO & LASURECO
Drafted Terms of Reference for CSP 1st Quarter of 2023

Completed the process and 1st
BASELCO
necessary documents/ TOR for CSP Quarter of 2023
PB 108 installed at Lamitan
Poblacion and operated on Island
mode with 2MW capacity and also
1st Quarter of 2023 BASELCO
awaiting for the approval of the rate
application of Rose DPP to augment
PB108 in supplying Lamitan City
62
COST CUTTING / PRUDENTIAL FINANCIAL MANAGEMENT
ADDRESSED
1 Ballooning of NPC Power Bill Submitted Debt Restructuring

Account Proposal with NPC last June
2022. Awaiting for NPC
1st Quarter of 2023 SULECO
Management and Board Approval.
Requested for negotiation with

NPC Management for the 1st quarter of 2023 BASELCO
possibility of condonation
2 Ballooning of NPC PSALM Negotiated with PSALM for
Power Bill Account Special Payment Arrangement
2nd Quarter of 2023 LASURECO and MAGELCO
(SPA) and CSEE.
3 Ballooning of KREC Power Bill Preparation for Debt

Account Restructuring Proposal with 2nd Quarter of 2023 TAWELCO
KREC.
OTHER MATTERS
NO ISSUES AND CONCERN EC STRATEGIC INITIATIVE (IF ANY) EXPECTED TIMELINES AFFECTED ELECTRIC COOPS
. TO BE ADDRESSED
Expiration of Franchise Term Preparation for the needed

LASURECO, SULECO, BASELCO &
1 documents for franchise renewal 3rd Quarter of 2023
TAWELCO
application
Searching for Third-Party
Engagement that could assist the 1st Quarter of 2023 SULECO & TAWELCO
filing for franchise renewal.
Dilapidated & Old Aged Rehabilitated the Feeder 4 & 6 1st Quarter of 2023
2 Distribution Lines SULECO
under JICA Subsidy Project
Incorporation in the 2023 Plan for 1st Quarter of 2023
the Rehabilitation of Other Areas LASURECO, SULECO, BASELCO,
MAGELCO & TAWELCO
Continuous implementation of 4th Quarter of 2023
Rehabilitation & Upgrading Program
3 CAPEX Application Searching for a Third-Party
LASURECO, MAGELCO, SULECO &
Engagement that could assist the
preparation for its CAPEX
Application.
Preparation of the Relevant
documents required for the said 1st Quarter of 2023 LASURECO, SULECO, & TAWELCO
application.
4 Possible Imposition of Real Preparation for RPT Application with
LASURECO, BASELCO, MAGELCO &
Property Tax (RPT) ERC in case LGU assessed & levied 3rd Quarter of 2023
SULECO
EC’s property
Formally seek an audience with
Isabela City LGU to discuss the
proposal of BASELCO to pay the RPT 4th Quarter of 2023 BASELCO
due amounted to 37M and the
manner of recovery to the MCO
63
OTHER MATTERS
ADDRESSED
No Accounting System Conduct training for Accounting

5 Personnel in the Preparation of
Reportorial Requirement and 1st Quarter of 2023 TAWELCO and MAGELCO
Other Reports such as MFSR
No Inventory System Engage with IT experts for the

6 development of Inventory System
2nd Quarter of 2023 TAWELCO and MAGELCO
for the Warehouse
7 Low Salary for Employees Since 2016, employees salary was

based on the 2016 salary
guidelines (Small Cooperatives
salary) despite TAWELCO as
1st Quarter of 2023 TAWELCO
Medium Cooperative. To increase
salary of employees by adopting
the latest salary scale for Medium
Cooperatives
8 Unavailability of Data for Coordinate with IEMOP for
Completion of WESM assistance and alternative on the 1st Quarter of 2023 LASURECO and MAGELCO
Registration lacking data and requirements
9 FUEL Crisis Existence Continuous dialogue with NPC and
other stakeholders on the
possibility and consequences of 4th Quarter of 2022 BASELCO
the power curtailment due to fuel
shortage
2023 Strategic Thinking

Electric Cooperatives Association of
REGION VI
64
Issues/Concerns Action by EC Target Date ECs
Affected
Capacity Building for the Early drafting of TOR and other related 2023 Q1 ILECO 3
conduct of CSP for New documents
Power Providers and Coordinate and benchmark with other ECs 2023 Q1 ILECO 3
Qualified Third Party who have already conducted CSP for
NPP/QTP
NEA to initiate trainings/workshops in the ECS 2023 Q1 ILECO 3
for the formulation of TOR
No feedback from NEA on Constant follow-up with NEA Dependent NOCECO
approval of Guidelines for on NEA's
QTP Bidding Action
Fund allocation for RE Evaluation of costs for budgetary requirements 2023 Q1 ILECO 3
Projects for island
barangays Coordination with other government agencies ASAP ILECO 3,
and NGOs for possible funding source CENECO,
GUIMELCO
65
Affected
Funding Allocation Evaluation of costs for budgetary 2023 Q1 ILECO 3
for line requirements
enhancements and Coordination with local officials regarding 2023 Q1 ILECO 3,
extension projects the remaining areas and households to be CENECO
energized and acquisition of ROW
NEA to schedule implementation period on 2023 Q1 ILECO 3
the 1st-2nd Quarter of the year
Negotiate with private companies on the 2023 Q1 ILECO 3,
possibility of Joint Venture on Submarine GUIMELCO
Cable Inter-Island Connection Project
Insufficient subsidy Requested funds from NEA June 2023 ILECO 2,
funds for SEP Projects GUIMELCO
from NEA
Issues/Concerns Action by EC Target ECs

Date Affected
100% Total Introduce program to encourage connections for Jan-23 AKELCO
Electrification / barangays with less than 100% HH Connections
Household Offer Service Drop Installation (SDI) Loans which will 2023 ILECO 1
Connection be paid in staggered added to power bill
Communicate with LGU to waive permit fees to 2023 ILECO 1,
lessen expenses CENECO
Prepaid metering / Solar Home System for far-flung Jun-23 AKELCO
areas
Organize potential MCO Organizations in areas with Jan-23 AKELCO
zero connections
Study utilization of ER1-94 Fund Jun-23 AKELCO
10-year Local Total Electrification Roadmap 2023 Q2 NONEC

O
66
Issues/Concerns Action by EC Target ECs Affected
Date
Right of Way Conduct conference with landowners 2023 ILECO 1,
and barangay officials during the final GUIMELCO
survey and provide ROW certificate
Inaccessible roads Recommend location for DOE PVM/SHEP 2023 ILECO 1
Insurgency Seek assistance from LGU to provide law 2023 ILECO 1
enforcers during construction of project
Political Intervention Present project proposal to host 2023 ILECO 1
barangays and enlighten the officials of
the main objective of the program
Issues/Concerns Action by EC Target Date ECs Affected
Funding Allocation for RE Projects Coordination with other 2023 Q3 ILECO 3,

government agencies and NGOs GUIMELCO
for possible funding source
Venture into Third Party 2023 Q3 ILECO 3,
Participation GUIMELCO,
ANTECO
Avail the 3-5MW Solar Power for Dec-23 ILECO 2,
Generation GUIMELCO
EC Competency on the Attend available trainings and Upon availability of NOCECO,

evaluation on the proposed seminars related to the Training / Seminars GUIMELCO
embedded Renewable Energy competency on evaluation of
Source embedded renewable energy
sources
Swiss challenge for Embedded RE Allow to conduct BOT and Swiss ASAP CENECO
Power Supply challenge procurement to the
Feasibility studies of embedded
RE generation within the franchise
area
67
Delayed in liquidation Allow partial liquidation for Dependent on NOCECO,

caused by Peace and Order completed projects to NEA's Action CENECO
in one of the sitios reduce EC accountabilities
to NEA
Release of Typhoon Odette's Send proposal to NEA to Dependent on NOCECO
Financial Assistance is allow release of financial NEA's Action
dependent on the EC Full assistance due to natural
Liquidation of subsidies such calamities and remove the
as SEP requirement of fully
liquidating the SEP Subsidy as
they are different programs
Excess and unutilized Allow re-alignment of the Dependent on CAPELCO
allotted subsidy funds to other NEA's Action
funds relevant and similar projects

Date
Fast-tracking of TGP Timely preparation of documents and regulatory ASAP ILECO 3
and CAPEX requirements
Applications with ERC Follow-up with ERC the pending applications ASAP ILECO 3
Fuel Cost and volatile Institutionalize a Risk Mitigation Fund for all ECs ASAP ILECO 3, GUIMELCO
market especially those dependent on coal suppliers. This
will cushion the effects of the volatility of prices in the
WESM and international market.
Contract with RE sources which has more stable and On-going CSP ILECO 3, AKELCO, ILECO
cheaper price 2, ILECO 1, GUIMELCO,
ANTECO
Indicate in the TOR that fuel costs shall not be On-going CSP ILECO 3
passed-on, specify a Levelized Cost of Energy
Participate in Green Energy Option Program Dec. 2023 AKELCO
Conduct of CSP for additional supply with least cost Dec. 2023 AKELCO, ILECO 2,
ANTECO
WESM Trading Techniques, Demand Side 2023 ILECO 1
Management, and System Loss Reduction Program
Suspension/Deferral of any cost adjustment 2023 CAPELCO
68
Affected
No specific timeline Exhaust all possible means of Dependent NOCECO,
from DOE and NEA on communication with NEA and DOE on NEA's GUIMELCO
providing feedback on Action
EC CSP Queries and
TOR Review
Payment of Property Registration with CDA for exemption On-going ILECO 2
Tax from Real Property Taxes
Slow action of Seek assistance from NEA and LGU ASAP CENECO,
regulators for CAPEX GUIMELCO
Applications, TGP, OU,
CSP
Implementation of Request ERC to adjust the period of ASAP CENECO,
Over/Under Recovery reckoning from 3 years to 1 month GUIMELCO
(ERC Res. 16-2009)
Issues/Concerns Action by EC Target ECs

Date Affected
Implement OU Request NEA assistance for ASAP CENECO
Sellback (ERC Res. regulatory review of ERC Method:
16-2016) a. Segregate the WESM Bill into 2 categories:
1. Sellback
2. Purchase
b. Categorize sellback (trading) - intended
for trading. This will be treated under
principles of Res. 16-2016
2. Sellback (Actual) - variance of nomination
versus actual so that it will be treated as cost
reduction rather than penalty for Ecs
No RPS contract for Negotiation with a private RE 2023 Q3 NONECO
2023 Developer for a possible contract
for RPS requirements
69
Fuel Cost Monthly monitoring of utilization and prices On-going ILECO 3
Negotiate with local gasoline stations for discounts ASAP ILECO 3
Increase COB Allocation for Fuel Jan-23 AKELCO
Additional procurement of gas stations in coverage 2023 ANTECO
Implement Austerity Measures on vehicle usage Jan-23 AKELCO,
GUIMELCO
TELCO and DPWH Continuous follow-up of payments Nov-22 ILECO 3
Receivables Direct communication with TELCO and DPWH heads Nov-22 ILECO 3
Consumer Daily monitoring of collection On-going ILECO 3
Receivables Sending of demand letters to delinquent consumers On-going ILECO 3
Operation Sukgay after every disconnection period On-going ILECO 3
Strict implementation of Disconnection Policy (pull- On-going ILECO 3,
out of kWh meters for 2 bills and up) GUIMELCO

Depleted Working Secure short-term loan from 2023 ANTECO
capital NEA and other financing
institutions
Avoid unnecessary 2023 CAPELCO
expenses, prioritize power
cost payment
DSM Rate could Follow-up with Tariff Glide Path Dependent on NOCECO
not suffice the Application ERC's Action
operating
expenses to catch Strict adherence to 2023 Q1 NONECO
up with inflation Procurement Plan
70
Date
Franchise Application of Franchise renewal to Jun-23 AKELCO
Renewal congress
Secure support from local and national 2023-2025 ILECO 2

leaders, and MCOOs to assist in the
filing and preparation of bills for the
renewal of franchise
Expansion of Continuous lobbying/coordination with On-going ILECO 2
More Power's GENCOs for the re-pricing of cost of
Franchise Area power
Conduct CSP with other ECs in the On-going ILECO 2,
region to look for lower generation NONECO
prices
Organizational Structure
Outdated Organizational Restructure to meet the fast changing Jun-23 AKELCO,
Structure requirement of the power industry GUIMELCO
Compliances
Compliances Over-load Capacity building of Regulatory Mar-23 AKELCO
Compliance Officer
e-data banking security Jan-23 AKELCO
MCO Satisfaction
Customer Dissatisfaction 24/7 Helpdesk Center Jan-23 AKELCO
Continuous update on the status of Jan-23 AKELCO
power interruption
Limit scheduled power interruption Jan-23 AKELCO
IEC Campaign for LGUs and Media Jan-23 AKELCO
71
Conversion
Conversion of EC as To coordinate with NEA and CDA for On- ILECO 2
Stock Cooperative proper guidance and procedure going
under CDA
Key Performance Standards
System Loss Cap Provide for graduated or ladderized KPS ASAP CENECO
Scoring for System Loss. Instead of 0, a
proportionate computation shall be
formulated
Image Building
Improve Coop Utilize various media platforms and
ASAP AKELCO
Image communication channels to inform,
update, and educate MCOs
2023 STRATEGIC
INITIATIVES
CEMRECA-SEMCA (REGIONS 11 & 12)
72
1. TOPIC : TOTAL ELECTRIFICATION
EXPECTED TIMELINE TO
ISSUES & CONCERNS EC STRATEGIC INITIATIVES EC AFFECTED
BE ADDRESSED
A. Insufficient fund to SEP allocation for GAA
attain the 100% total  Annually submit to NEA names of 2022 to be implemented
COTELCO
electrification sitios/puroks for SEP funding for the year 2023
 Coordinate to LGU and DILG to

allocate funds for electrification
from the National Task force-End on-going
Local Communist Armed Conflict
(NTF-ELCAC).
B. Some sitios and puroks  Coordinate with LGU for possible
have no road access funding
 Energized through PVM-SHS on-going
Program
C. Some sitios and puroks  Coordinate to PNOC-EDC MAGP
needs Php 5M & above for funding allocation from ER1-94 on-going
funding fund.
1. TOPIC : TOTAL ELECTRIFICATION

EXPECTED
ISSUES & CONCERNS EC STRATEGIC INITIATIVES TIMELINE TO BE EC AFFECTED
ADDRESSED
D. Insufficient subsidy allocation for sitio
electrification to energize more sitios
E. Budget allocation per sitio based on the
budget proposal of the Ecs (some of the
far-flung sitios were not included in the
program since the project cost exceed  Energize sitios thru
the limits) Government Subsidy and Yearly
F. Number of household cap per sitio RFSC Fund
ALL ECs
needs to be increased to step up
energization percentage
G. allow utilization of insulated conductors
in the design of EC distribution line to
aboid future realibility problems
H. NEA to endorse EC appliced CAPEX
 Seek endorsement from Annual Project
Projects to ERC to secure provisions
NEA on loan applications Implementation
authority
I. Establish feedback mechanism on
funding approval of submitted  Close monitoring with NEA 1st Quarter of 2023 DASURECO
Energization Request from LGU
73
2. TOPIC: RENEWABL ENERGY / RENEWABLE
ENERGY STANDARDS (RPS)
EXPECTED TIMELINE
TO BE ADDRESSED
A.COTELCO shortfall on RPS will  COTELCO is already in close
start on 2024 as per recent RPS coordination with FirstGen (M3 of Mt.
simulation submitted to DOE Apo) for a possible embedded
with an estimated shortfall of generation of its 3MW capacity as it is 2023 / 2024 COTELCO
around 10,222 Mwh (approx. 1- located in its franchise area with the
2MW). support also of the LGU.
 2MW Biomass from FDC is also being

considered. (FDC filed its excess
2023
generation from its sugar plant
(COSUCECO) as part of GEOP).
B. Technical and Financial  Explore potential renewable sources

Support in developing within AoR. Arrive to Feasibility Studies, 2023 DASURECO
Renewable Energy Sources Approved project proposals
C. Technical assistance and
funding requirements for the
development of low-carbon  Close monitoring with NEA 4th Quarter 2023 DASURECO
energy projects (Feasibility
Studies)
3. TOPIC : LIQUIDATION OF SUBSIDIES

ISSUES & CONCERNS EC STRATEGIC INITIATIVES EXPECTED TIMELINE EC AFFECTED
TO BE ADDRESSED
A. Delay in the project  Make use of he ECs on-stock - Immediately - COTELCO

implementation due to disruption materials to expedite the
in the global supply chain which project Implementation.
affected the supplier's capability
to deliver the materials within the
timeline.
74
4. TOPIC : EC RATES/PSA/CSP
EXPECTED TIMELINE
TO BE ADDRESSED
 The immediate steps taken by COTELCO
A. Continues increase of EC Rates. It is
is to minimized the usage of its coal-fired
in the generation charge portion of the COTELCO &
power plants and maximize its contract
electricity bill that contributed to the On - going other ECs
with PSALM. Unfortunately, PSALM
increase in the over-all electricity rate
cannot fully accommodate the required
due to the increase of fuel charges of
demand as its plant are mostly derated,
contracted coal-fired power plant.
hence continuous reliance to coal.
 Consumers were also constantly advised
thru radio broadcast and social media
platforms pertaining the surge in
On - going
generation rates and the reason behind
as well as the prudent used of electricity
to mitigate its impact.
 To conduct dialogue with coal power

plant suppliers for possible extension of
the contract term of power supply
2023
agreements to bring down the fixed
charges (CRF & FO&M), to mitigate the
current surge of generation rate.
4. TOPIC : EC RATES/PSA/CSP
EXPECTED TIMELINE
TO BE ADDRESSED
 EC has no control on coal price but
B. Continuing increase in coal try as much as possible to get
price cause to increase blended bigger supply from PSALM and - SOCOTECO-II
generation rate non-coal supplier to mitigate
generation rate increase
C. Review on DSM rates of Ecs
should be initiated to come up  Submit reviews of DSM rates 2024 All ECs
with appropriate DSM Rate per EC
75
5. TOPIC : COST CUTTING / PRUDENT FINANCIAL
MANAGEMENT
EXPECTED TIMELINE
TO BE ADDRESSED
A. Continued rising of  Manage Fuel and Travelling Costs
Commodity Prices such as Fuel by regulating schedule of EC Travels
and Oil which make up a within the coverage area and
significant portion of the ECs constant monitoring of fuel
operating expenses. consumption.
 The Management observed
austerity measures to address
recent issues in the increased of
prices in all goods, such as
B. Recent spikes in the cost of Monthly monitoring
postponement on the
diesel and gasoline in the market of the
implementation of some budgetary DASURECO
that primarily caused increased Cooperative's
item which are deemed not urgent
of prices in all goods. disbursements.
to cover increase in prices on other
necessary items so as not to hamper
the operational performance and
core services of the Cooperative.
6. TOPIC : DELAYED ERC APPROVAL

EXPECTED TIMELINE
TO BE ADDRESSED
Pending ERC approval of
Tariff Glide Part (TGP) A and  EC Austerity Measures - SOCOTECO-II
B
76
6. TOPIC : OTHER TOPICS
EXPECTED TIMELINE
TO BE ADDRESSED
A. Pending Self Generating  Non-Approval of SGF
- SOCOTECO-II
Facility (SGF) Policy Approval Applications of Customers
B. Increasing Net Metering
Applications - which may  Monitor strict compliance to Net
- SOCOTECO-II
somehow cause to decrease Metering Application Standards
in EC Sales
C. Some customers are still not  EC to monitor payment and
consistent in paying their empower disconnection - SOCOTECO-II
electric bills implementation
BECA-NAGMEC5
STRATEGIC OPTIONS
November 15-16, 2022
PENELCO, Balanga, Bataan
77
Issues & Concerns
I. TOTAL ELECTRIFICATION
1. PROJECT FUNDING CONCERNS (SEP, BLEP, NIHE, AND TEP PROJECTS)
1.1 ERC Approval of CAPEX Projects for Electrification Projects
1.2 SEP allocation not within the priorities of LGUs/Govt. agencies
1.3 Suspension of release of SEP Funds due to unliquidated funds
2. PURSUING ELECTRIFICATION IN REMOTE/UNVIABLE AREAS
2/17/2023 Annual Review 156
Strategic Options
1. Construction Of Extension Lines Using EC Capex Funds (include in COB and work plan)
2. SEP projects to be included in COB for immediate implementation and concomitantly
applied as CAPEX Projects for filing with ERC
3. Create Access to government funds such as SEP Subsidies, ELCAC Funds,
Congress/Senate Funds or LGU Funds. NEA-DOE to facilitate funding support through
DILG-DOE joint circular issuances
4. Pursue release of ER-194 Funds to support electrification projects
5. Pursue MICRO-GRID projects to provide electricity services to remote unviable areas
78
Action Taken and Timelines
1. Inclusion of CAPEX Projects for Electrification in the 2023 COB/Workplan
2. Filing of CAPEX Projects for Electrification with ERC
3. Funding already secured from Partylist for BLEP projects
4. Other options are work in progress (ongoing)
Issues & Concerns
II. RENEWABLE ENERGY

1. Handicaps in Technological know-how and funding issues encountered in the
implementation of Embedded Generation Facility (RE)
2. EGF- RE Projects encountering implementation delays owing to documentation
and approval lags
3. Difficulty in complying RPS Requirement
4. Delay in GEAP implementation
79
Strategic Options

1. Benchmarking and Capacity Building on EGFs and REs. – This will allow
knowledge transfer that will enhance EC capacities therefore stimulate their
drive to pursue and venture on EGFs. This will also enhance capacity in
understanding the technical and legal dimensions of EGF implementation
2. Request proposals for Joint Venture from private players
3. Create access to loans/financing
4. Request NEA/DOE to expedite approval process and create platform allowing
one-stop processing for JVAs/EGF approval
Strategic Options

5. Request DOE to suspend RPS Cap requirement for the time being but pursue 35% RE
generation mix by 2030 (Ongoing construction of RE Generation plants and are mostly
expected to be operational by 2024)
6. Include RPS requirement in TORs in the CSPs/PSAs
7. Create platform for documentation and quick approval mechanisms for both RE
suppliers and RE customers that will encourage them to enroll under GEOP program
8. Through NEA, Request DOE to accelerate execution of GEAP
9. Through NEA, Request DOE to pursue jointly enacted policy with DILG/NGAs that will
relax LGU and NGA permit requirements for EGFs, ROW clearing
80
1. Inclusion of CAPEX Projects in the 2023 COB/Workplan

2. Filing of CAPEX Projects covering RE/EGF Projects with ERC
3. Solicit Proposals for JVA from private players
4. Other options are work in progress (ongoing)
Issues & Concerns
III. LIQUIDATION OF SUBSIDY

1. Delay and the challenges in Liquidation of subsidy
2. Liquidation of other subsidies being made a pre-requisite to release of force-
majeure subsidy/emergency subsidy
3. Liquidation of SEP subsidies must differ from the liquidation for Force Majeure
subsidies
81
Strategic Options

1. Creation of project management team using dedicated outsourced or project-
based workers that will work solely on documentation and liquidation tasks
2. Utilize allocation for contingencies to hire outsourced team/personnel
3. Request NEA to relax pre-release conditions for emergency subsidy or release of
force majeure funds
4. Request NEA to adopt a liquidation of SEP subsidies different from the
liquidation of subsidies for Force Majeure

1. Project Management Unit personnel to be outsourced using allocation under
contingency fund
2. Letter to be drafted addressed to NEA
82
Issues & Concerns
IV. EC RATES/CSP/PSA
1. Power rates – passive stance of ERC in intervening to ensure transparency and be
vigilant on generators’ incremental fuel pass-on charges (actual coal index applied).
High exposure to the price volatility of market
2. Dragging PSA/CSP Approval Process – Late approval of TOR OF CSP/PSA, PSPP and
TGP. ERC must ASAP release decision on pending ERC cases affecting rates such as
PSAs, TGPs, CAPEX etc.
3. Nearing end of contracts for CSEE/PSA
Strategic Options
IV. EC RATES/CSP/PSA
1. REQUEST NEA/DOE to create platform for joint and collegial review process of
CSP/PSA (NEA, DOE, EC to sit down together)
2. Pursue CSP/COE/EPSA to address issue on under contract
83
Issues & Concerns
V. COST CUTTING MEASURES (and

STRENGTHENING OF REVENUE RAISING
MEASURES)
1. High MOOE
2. Rising Cost of Power
3. Unexplored/unmaximized Revenue- Raising opportunities
Strategic Options
V.COST CUTTING MEASURES (and STRENGTHENING OF

REVENUE RAISING MEASURES)
1. Implement Cut on Fuel allocation for vehicles
2. Pursue re-fleeting program to get rid of inefficient and high maintenance vehicles
3. Conduct of inhouse seminars/trainings or regional level seminars/trainings
4. Adopt Virtual AGMAs rather than face to face
5. Rather than filling up of vacant regular plantilla positions, outsource workers through
manpower services
6. Manage financial statements to avoid high BIR income taxes
7. Ensure SL cap to avoid subsidizing losses
8. Avoid arrearages and late payment penalties
84
Strategic Options
V. COST CUTTING MEASURES (and

STRENGTHENING OF REVENUE RAISING
MEASURES)
1. Increase kWh sales by promptly energizing new connections
2. Maximize kwhr sales by Improving further reliability to Reduce power interruptions
3. Be on lookout on WESM trading
4. Strict inventory of pole attachments (JPA)
Issues & Concerns
VI. INVESTMENT IN GERMANE BUSINESS
85
Strategic Options
VI. INVESTMENT IN GERMANE BUSINESS
1. ECs must invest (partnership) with embedded RE investors or pursue EC-owned EGF
2. Request NEA & ERC to establish a fast lane for immediate approval of ECs application
for CAPEX Projects that cover RE Investments
3. Request NEA to set-up fund for loans of ECs investing in RE projects

2023 STRATEGIC THINGKING
with the Electric Cooperatives
REGION XIII
CARAGA RURAL ELECTRIC
COOPERATIVE ASSOCIATION (CRECA)
86
TOTAL ELECTRIFICATION
RENEWABLE ENERGY/RENEWABLE PORTFOLIO STANDARD(RPS)
87
RENEWABLE ENERGY/RENEWABLE PORTFOLIO STANDARD(RPS)
LIQUIDATION OF SUBSIDIES
88
EC Rates/PSA/CSP
EC Rates/PSA/CSP
89
Cost Cutting/Prudent Financial Management
INVESTMENT IN GERMANE BUSINESS
90

Corporate Planning Advisory 1

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Corporate Planning Advisory 1

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A' •

March 03, 2023

CORPORATE PLANNING ADVISORY

TO ALL ELECTRIC COOPERATIVES (ECs)

ATTENTION: REGIONAL ASSOCIATIONS PRESIDENTS

SUBJECT Outputs of 2023 NEA Strategic Thinking Conference-Workshop

May we provide you copies of the following documents:_

1. Outputs of the 2023 NEA Strategic Thinking Conference-Workshop conducted on

We thank the active participation of the EC representatives in contributing to the success

Day 1 – January 26, 2023

Day 3 – January 28, 2023

Looking at the different speaking points, electrification does

Include NIHE, locally funded projects, and augmentation of funds as

Streamline the policy direction within NEA and should be

Antonio Mariano C. Almeda

HRAD to expedite the filling up of all the vacancies to address

PHILRECA and FRECOR 8 is completely cooperating with

Virgilio C. Fortich, Jr.

Inthese critical times, “technology is the key”. Through the

Jose Raul A. Saniel

The Administrator’s message will be cascaded to all

Reported the accomplishments of RENAGMEC Power

Limited number of NEA lawyers available due to their designations as

TPS Republic of the Philippines

NEA Bldg., No. 57 NIA Road,

" Energizing the Countryside, Electrifying the Future"

Good Procurement of Financial Stability

CORPORATE RESOURCES AND FINANCIAL SERVICES (CRFS)

CORPORATE RESOURCES AND FINANCIAL SERVICES (CRFS)

Technical Services accepts the challenge of 100% electrification by

Federico P. Villar, Jr.

Technical Services must be complemented by personnel to realize the

Review the relevance of NEA policies and streamline some existing

NEA CORE COMPETENCIES

FINANCIAL INSTITUTIONAL TECHNICAL LEGAL/REGULATORY

 Consumer Education  Compliance to Technical  Comprehensive Audit

“A key sector in our

– 2022 PBBM SONA

Availability of cheap, reliable energy

Energy Agenda based on SONA “Ease of doing business”

Increase the level of energy

Build new power plant/renewable

Build new power plant/ “renewable

Energy Agenda based on SONA

– 2022 PBBM SONA

“We must expand the network of our transmission

– 2022 PBBM SONA

NINE (9) ADMINISTRATOR’S PRIORITIES

Status of Consumer Connections

Luzon 6,229,576 6,008,016 96 221,560 1,161,902 7,169,918 115

Visayas 3,687,915 3,502,459 95 185,456 565,700 4,068,159 110

Mindanao 4,428,401 3,666,448 83 761,953 445,178 4,111,626 93

Total 14,345,892 13,176,923 92 1,168,969 2,172,780 15,349,703 106

* Based on 2015 Census

Matatag, Maginhawa, at Panatag

National Economic and Development Authority

Renewable Energy Generation Facilities

 Reasonable Power Rate  System Reliability and Efficiency

 Collection Efficiency  Disaster Mitigation

 Provisions of Loans  Risk/Crisis Management

 Exemption from Tax Payment

2023 Corporate and Sectoral

NATIONAL OPERATIONAL EFFICIENCY STRATEGIC ALLIANCE

To sustain the organization’s viability