16 April 2020

ADVISORY-2020-075

FOR : ALL ELECTRIC COOPERATIVES

SUBJECT : CLARIFICATION ON THE PANTAWID LIWANAG

PROGRAM

Greetings from PHILRECA!

This is in reference to PHILRECA Advisory-2020-068 sent last 06 April 2020 regarding

the Pantawid Liwanag Program, a CSR of the Electric Cooperatives nationwide. To better
appreciate and understand the CSR program, we have simplified the guidelines (Annex
A) which is hereto attached for your ready reference.

We would like to emphasize that EC management is given the full discretion on how to
implement the program based on their circumstances and financial capability. For
those with limited funds, they have the option to adopt a “prorata scheme” and not
necessarily to cover the total consumption of the target beneficiaries. EC may also opt to
go for a “discount scheme” for all their consumers within a consumption bracket.

For uniformity, we appeal that ECs print and distribute a coupon or a voucher indicating
the name of the beneficiary, sample of which was earlier provided.

Moreover, to further clarify on the pronouncement of Cabinet Secretary Karlo Alexei

Nograles relative to our CSR program, your association has issued press releases which
are likewise hereto attached for your information.
1. Annex B
PHILRECA AND ELECTRIC COOPS LAUNCH PANTAWID LIWANAG
PROGRAM TO PROVIDE SUBSIDY TO MARGINALIZED CONSUMERS
2. Annex C
PHILRECA APPEALS TO GENCOS AND GOVT REGULATORS ON MATTERS
AFFECTING MCO POWER BILLS

We appeal that you help us disseminate the information in order that your respective
member-consumer-owners are well informed. For inquiries or other concerns, you may
reach us at core@philreca.org or 0917.850.6830 (Globe) / 0939.905.2206 (Smart).

Thank you.

Sincerely

JANEENE-DEPAY-COLINGAN
Executive Director/General Manager

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone Nos.: 967-1580/0917-850-6830/0939-905-2206
Website: www.philreca.org; e-mail address: core@philreca.org
 PANTAWID LIWANAG PROGRAM
CSR OF ELECTRIC COOPERATIVES NATIONWIDE

RATIONALE

Access to electricity is a basic necessity. Only the 121 electric cooperatives –

can make this a possibility for all the people in the countryside.

With the government’s call for support and in order to provide assistance to
those electricity consumers who are most vulnerable in this time of COVID-19 global
outbreak. PHILRECA and NAGMEC came up with a CSR program that is truly in line
with our mission, and that no other organization can make but only the ECs: A CSR
for the less fortunate Member-Consumer-Owners (MCOs)

This is timely since right now, no one has ever initiated or implemented a CSR
project or program that provides subsidy to electricity bills.

OBJECTIVES:

a. To let the MCOs feel that the electric cooperatives are not just a typical utility
company who is concerned of payment collections; but more importantly, very
concerned of mitigating the impact of COVID-19 pandemic to the people.
b. To ease the burden of those who have less in life, the less fortunate MCOs, in
paying their power bills during the period where they have no income because
they are obliged to stay at home during the community quarantine.
c. To showcase and paint the corporate image of the electric cooperatives.

CSR PROGRAM NAME:

Pantawid-Liwanag (PL)

TARGET BENEFICIARIES:

The target beneficiaries are those MCOs who belong to a consumption

bracket/level as may be determined and set by the EC, priority are those:

1. Less fortunate MCOs who have no regular income i.e. Lifeline electric
consumers with the said consumption bracket
2. Employed with regular income but has insufficient and with difficulty in
paying their electricity consumption being affected by the current
pandemic within the said consumption

TARGET BILLING PERIOD:

The target billing period is March 26 to April 25, 2020 or April 2020 power
bill.

FUND SOURCES:

The Fund shall be taken from:

1. The allocated budget for institutional programs and activities of the ECs
which has been or will be suspended or cancelled for 2020 in view of the
crisis such as but not limited to AGMA and District Elections.

Note: The budget for the suspended institutional activities should be

realigned to fund the Pantawid Liwanag CSR program. The same
should likewise be clearly indicated in the EC-Risk Management
and Sustainability Plan (EC-RMSP) that should be submitted to the
NEA.

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone Nos.: 967-1580/0917-850-6830/0939-905-2206
Website: www.philreca.org; e-mail address: core@philreca.org
 2. If the ECs have existing advocacy fund, it can augment the fund for this
endeavor.

3. Donations from employees and other philanthropists are very much

appreciated.

4. Possible allocation from the One EC Network Foundation.

MECHANICS:

1. EC Board Resolution adopting the CSR program to included the “Pantawid

Liwanag” to be submitted to NEA copy furnished PHILRECA.

2. Review and validate the number of target beneficiaries and the applicable
bracket/level of their consumptions

3. Compute the total amount needed to subsidize the one-month power bill
(March 26 to April 25, 2020 billing cycle or April 2020 bill) of these target
beneficiaries if the budget is sufficient. If not, the EC may opt to give a prorata
scheme and not necessarily the total consumption that will be subsidized. ECs
may also opt to go for a discount scheme for all their consumers within a
consumption bracket.

4. The EC will print a coupon to be distributed to the recipient of the Pantawid-

Liwanag program (sample coupon already distributed)

5. Utilize the MCOO Officers in the respective barangay to distribute the coupon
with the name of the beneficiary and instruct the same to present it to the
cashier or teller when they pay their power bill. To observe social distancing,
the MCOO Officers may also receive the power bills with the coupon as
payment and submit to the EC Main Office. The MCOO Officers will make it sure
that the coupon as payment must be signed by the Pantawid Liwanag
recipients.

6. EC management is given the full discretion on how to implement the program

based on their circumstances and financial capability

OTHER CSR PROGRAMS:

If the ECs have enough budget to further initiate CSR other than the Pantawid-
Liwanag program, they may proceed with their noble intention. But it is
recommended that the CSR for Pantawid-Liwanag program should be done by all ECs
nationwide.

Other suggested CSR programs are those related to electricity like providing
free electric service to the checkpoints.

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone Nos.: 967-1580/0917-850-6830/0939-905-2206
Website: www.philreca.org; e-mail address: core@philreca.org
FOR IMMEDIATE RELEASE 16 April 2020

PHILRECA AND ELECTRIC COOPS LAUNCH PANTAWID LIWANAG

PROGRAM TO PROVIDE SUBSIDY TO MARGINALIZED CONSUMERS

The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) in

cooperation with the National Association of General Managers of Electric
Cooperatives, Inc. (NAGMEC) spearheads the implementation of Pantawid
Liwanag, a corporate social responsibility (CSR) program of electric cooperatives
simultaneously being implemented across the nation.

Undeniably, access to electricity is a basic necessity especially in this time of

pandemic – just imagine being on a home quarantine and work from home scheme
without electricity. Right now, no one has ever implemented a CSR program that
provides subsidy to electricity bills. PHILRECA has lobbied not just once for the “bill
subsidy benefit” to be considered in the Social Amelioration Program of the
Bayanihan to Heal as One Act but to no avail.

Thus, in response to the government’s call for support, electric cooperatives

have decided to provide subsidy to its consumers through the Pantawid Liwanag.
This program aims to subsidize the electricity bills of those who are most vulnerable
in this time of COVID-19 global outbreak depending on the capacity of electric
cooperatives. Therefore, not all electric cooperatives will provide subsidy to
consumers with as high as 50 kWh consumption.

Majority of the ECs have committed to cover 20 kWh consumption and

below. But there are ECs who are looking into an option of just providing an equal
discount to a limited number of their MCOs within a certain consumption bracket
due to limited budget. Implementation of the program varies depending on the EC’s
circumstance and financial capability and the discretion of the management.

Since the program seeks to assist MCOs who are most vulnerable in this time
of COVID-19 global outbreak, the target bill to be covered will be the March 26 to
April 25 period (April 2020 billing cycle) and not 2 months bills. Electric
cooperatives, however, are not precluded from providing further assistance should
their financial circumstances allow it.

As a baseline requirement, those that will be included and prioritized in the

program are the marginalized consumers who are living below the poverty
threshold or are severely affected by the pandemic. Specifically, the target

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone No.: 02 967 1580; Website: www.philreca.org; e-mail address: core@philreca.org

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beneficiaries of this program are the less fortunate MCOs who have no regular
income like the lifeline electric consumers, those with regular income but insufficient
and has difficulty in paying their electricity consumption, those primarily affected
by the lockdown or the enhance community quarantine.

To fund the CSR program, most ECs will be utilizing their budget that is
supposedly allotted for their institutional activities, which are to be cancelled due to
the outbreak of COVID-19. Such institutional activities include but are not limited to
Annual General Membership Assemblies or AGMAs, district elections for directors,
and other programmed activities for 2020.

Budget for the aforementioned activities will be re-aligned to operational

working capital of the electric cooperative, with a portion of the amount to be used
to cover the EC’s CSR or the Pantawid Liwanag program. Other sources that can
augment the fund for this endeavor include existing advocacy funds of electric
cooperatives, donations from employees and other philanthropists, and possible
allocation from the One EC Network Foundation.

As of recent data, PHILRECA estimates the total number of consumers with

an average of 20 kwh consumption per month at 3,041,756. A total of 86 electric
cooperatives have already committed to implement the program. More than half of
the 121 ECs have already allocated an aggregate amount of PHP 118,333,667.37 for
their coverage areas, while the others are still running their simulations.

While the sector is pushing for the effective implementation of the

PANTAWID LIWANAG program across the country, we hope that the IATF would
still consider our appeal for the government to provide financial assistance to
marginalized consumers through the electric cooperatives as this would certainly
augment the limited capability and funds of the coops.

Pantawid Liwanag is the rural electrification sector’s contribution in the spirit

of Bayanihan to Heal as One Act or RA 11469. The program covers electricity
consumers within the franchise areas of the Electric Cooperatives; private
distribution utilities have their own CSR program.

##

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone No.: 02 967 1580; Website: www.philreca.org; e-mail address: core@philreca.org

Page 2 of 2
FOR IMMEDIATE RELEASE 16 April 2020

PHILRECA APPEALS TO GENCOS AND GOVT REGULATORS

ON MATTERS AFFECTING MCO POWER BILLS

In addition to the Pantawid Liwanag Program, ECs also are supporting front
liners (through food assistance, free electricity in some check points, provision of
PPEs, free shuttle whenever possible), electric cooperatives nationwide have given a
30-day extension in payment due dates for the electricity bills of all consumers. Not
only will this promote people to stay at home, this will also help the member-
consumer-owners defray other important expenses.

It is the fervent prayer of the electric cooperatives nationwide that other

energy stakeholders, especially our partners in the generation and transmission
sectors, and government regulatory agencies would reciprocate this altruistic
gesture to help the electricity end-users by positively accommodating the appeal of
PHILRECA on the following issues:

• PAYMENT EXTENSION OF COOPS POWER BILLS

We appeal to generation companies and other entities to give coops
extensions on payments and remittances not just for 30 days after April 14,
2020 but until such time that the operations of the electric cooperative
normalize and stabilize.

• REVISIT RULES OR PROVISIONS ON FIXED CHARGES AND

MINIMUM OFF-TAKE AGREEMENTS
With the continuous implementation of Enhanced Community Quarantine
(ECQ) in Luzon and community quarantine in almost all provinces, schools
are suspended, establishments are closed, and business operations are
halted. Consequently, these circumstances have resulted to a significant
decrease in the total electricity demand and consumption throughout the
country. We hope for humanitarian considerations that there would be
adjustment or lifting of rules on minimum contracted capacity and other
fixed costs such as capital recovery fee (CRF) and minimum energy off-take
(MEOT) charges in the Power Supply Agreements (PSAs) with ECs
nationwide as ECs cannot fully utilize the contracted capacity at 100% at this
time.

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone No.: 02 967 1580; Website: www.philreca.org; e-mail address: core@philreca.org

Page 1 of 2
 • PROMPT PAYMENT DISCOUNT
The ECs would like to appeal that they should be able to avail of the prompt
payment discount even if the payment is extended and staggered (per ERC
Advisory dated 15 April 2020). Prompt payment discount will be
corresponding on the amount paid on the said period.

• ACCESS TO ELECTRIFICATION FUNDS FROM THE ER 1-94

PROGRAM
Due to an amendment in Department of Energy’s DC 2018-08-0021, the
Electrification Fund component of the ER 1-94 Program will be reallocated
from DUs to LGUs of the Host Community. We expressed a different
opinion on the matter. We hope that distribution utilities will be given access
to this Electrification Fund as they have already available records, network,
manpower to implement a project for the member-consumer-owners in the
host communities – even if they are remitted to LGUs - and allow them to
subsidize the electricity bills of marginalized groups in the EC’s franchise
area.

Should the concerned stakeholders accommodate these requests, it will not be

the electric cooperatives who will benefit but the electricity end users themselves.
The low cost of electricity that would result to the positive accommodation of the
above concerns will certainly help our member-consumer-owners defray other
important expenses during this period.

PHILRECA stands side-by-side with the 121 Electric Cooperatives – the

government’s implementing arm in achieving total electrification in the countryside
– in ensuring reliable, uninterrupted, and cheap electricity access to every Filipino
household.

##

“United We Stand, We Stand United.”

2nd Floor, PNB Building, No. 92 West Avenue, Quezon City, Philippines
Telephone No.: 02 967 1580; Website: www.philreca.org; e-mail address: core@philreca.org

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