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THE PHILIPPINE
RURAL ELECTRIFICATION PROGRAM
EXPERIENCE
Edita S. Bueno
National Electrification Administration
Republic of the Philippines
7 October 2014 Energizing the countryside
Electrifying the future
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Flow of Presentation
The Philippines Facts & Figures
Positive Results
2
Facts & Figures
A country in Southeast Asia bounded by the
West Philippine Sea, Luzon Strait in the
north where also lies Taiwan, Pacific Ocean
in the east and the Celebes Sea in the south
West
separating from Borneo and Malaysia.
Philippine
Sea
An archipelago with 7,107 islands under 3
main geographical divisions, Luzon,
Visayas and Mindanao. Total land area is
300,000 square kilometers
Total population of 100 million (7th in Asia
& 12th in the world) divided into 7 major
ethnic groups: Tagalog, Cebuano, Ilocano,
Bisaya, Ilongo, Bicolano and Waray.
Population density is 333/square
kilometers
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STATUS OF PHILIPPINE ELECTRIFICATION PROGRAM
As of June 1969 ELECTRIC DISTRIBUTION ELECTRIC DISTRIBUTION
STATUS OF ELECTRIFICATION
UTILITIES (EDUs) UTILITIES
PROGRAM As of August 2014
Connections
LUZON - 8 Municipalities/Cities 100%
Potential 6.210 M 119 ECs
Served VISAYAS - 4 Villages 99.97%
1.217 M MINDANAO - 4 24 PIOUs/ LGUs Sub-Villages 86%
Energized 19.60% TOTAL 16 Connections 85%
Source:
EA Annual Report 1968-1969
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Electrification Profile
Divisions Potential Served %
Municipalities 1,490 1,490 100
Cities 144 144 100
Villages 42,028 42,014 99.97
Sub-Villages 103,489 88,653 86
Consumers 20,018,639 17,026,392 85
Implemented by 119 electric cooperatives, 16 private investor-owned electric
utilities & 8 local government managed electric utilities.
Seventeen million consumers or approximately 85 Million of the 100 Million
total population are with electric service; 54% of which are urban dwellers while
46% are from the countryside.
The major islands are connected through high voltage submarine cables.
Smaller islands do have independent or complementary systems.
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Philippine Electricity Sector
Electrification Champion/Advocate
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Key Elements of Success
2. Appropriate Laws
Total electrification of the countryside as a state policy
objective. Creation of NEA to oversee program
implementation; provide technical and institutional
services as well as financing through soft loans
Sufficient powers and authority to implement program
considering political, financial and social consequences
Recognition of Electric Cooperatives as the Vehicle to
implement the program and provide the necessary legal
and organizational cover
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Core Competencies of NEA
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Key Elements of Success
3. Clear Policy Framework
Rural Electrification is considered as an infrastructure like roads &
bridges, that every kilometer of line extended supports economic
opportunities
The Electric Cooperative Model has been chosen as the alternative to
local government management
Loans shall be in soft terms with long repayment period; borrowed in
dollars and lent in peso to ensure low/affordable rates; the whole
distribution system shall serve as collateral to their loans
Subsidies for capital expenditures for non-viable areas shall continue to
be provided to ensure total electrification
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Key Elements of Success
4. Partnership with International Agencies
Total foreign loans contracted - $524.68M Partnership with NRECA, USAID, World Bank,
USA, Germany, Japan, France, UK, Canada, China, JICA, KEPCO, ADB for technical capacity
OPEC, ADB, World Bank, Chase Manhattan building, cooperative organization &
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Average Growth for the Past 10 Years
2004 to 2013
Average
Average Annual
Indicators Annual Growth 2013 Total
Increase
Rate (%)
Revenue (PhP) 187 M 21.29* 2,748.55 M
Sales (MWh) 389,495 3.74 14,318,934
Connections 388,407 6.20 10,152,834
* Increased Generation Cost
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Averages
Operation of Electric Cooperatives
PERFORMANCE INDICATORS PHILIPPINES
Revenue/EC/Month (000) US$ 2,092 PhP 92,068
Unbundled Residential Rate (Php/KWH)
Mainland US$ 0.2233 9.8260
Island US $ 0.2538 11.1673
Connection/EC 87,888
Mainland 102,470
Island 35,728
Kms of Line Constructed / EC 1,527
Connection/Km of Line 32
MWH Sales /EC/Month 10,338
Monthly KWH Consumption/ Consumer 116
Monthly KWH Consumption/ Residential Consumer 64
System Loss (%) 12.28
No. of Employee/EC 190
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Key Elements of Success
5. Partnership with the Local Private Sector
Public funds cannot always be sufficient, thus the private sector,
particularly, the generating companies, have been tapped to support
village electrification. In areas where they are hosted, they provide
the surrounding villages/communities with electricity. These are
normally marginalized communities. For every KWh, of one
centavo was allocated for missionary electrification.
This strengthened corporate social responsibility within the business
sector. This provided for an acceptable, harmonious, peaceful &
economic existence for the business. The communities which have
been helped provide assistance, security & to an extent, result to win
their loyalty.
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Key Elements of Success
6. Strategic Program Implementation
It was necessary to have an immediate program impact, thus the
backbone approach of construction was utilized to connect town to town
and cover the major centers. This was the physical strategy. People
have to see to believe. Additionally, loan signing, pole erection &
energization ceremonies were celebrated to keep the excitement &
interest of people alive.
Prioritization of connections was determined according to geographical
locations, including economic indicators & proximity to tapping point.
Leaders (elected, community & opinion) were tapped for participation &
support to program execution, such as right-of-way acquisition, labor &
manpower, information/education programs, among others.
The electric cooperatives were called for semi-annual & annual
consultations on new policies, directions and plans.
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Key Elements of Success
7. Public-Private Partnership
NEA & the ECs fall under this partnership category where
government provides the political & financial support while the ECs
serve as its implementing arm. In the process, government fulfills
its mandate of providing its citizens with access to electric service
while the ECs serve as conduit to the economic uplift of the rural
areas. Such partnership ensures a high level of success.
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Key Elements of Success
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Impact of Rural Electrification
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Positive Results
Progressive countryside
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National Electrification Administration
www.nea.gov.ph
itcsd.nea@gmail.com
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