Renewable energy providers SN Aboitiz Power-Benguet and SN Aboitiz Power-Magat (SNAP) have signed a memorandum of agreement (MOA) with the Regional Development Council-Cordillera Administrative Region (RDC-CAR). This agreement is between RDC-CAR and power generation companies in the region for the implementation of projects under the Department of Energy’s (DOE) Energy Regulation No. 1-94 (ER 1-94).
Present during the MOA signing held on June 13, 2024 in Baguio City were RDC-CAR Co-chairwoman Edna Tabanda, RDC-CAR Vice Chairwoman and National Economic and Development Authority (NEDA) Regional Director Susan Sumbeling; SNAP Group Vice President (VP) and Chief Corporate Affairs Officer (CCAO) James Manimtim; SNAP-Benguet Assistant Vice President and Plant Manager Hollis Fernandez; and representatives from other generation companies operating in CAR.
In a message read by Co-Chairwoman Edna Tabanda on behalf of RDC-CAR Chairman and Apayao Governor Elias Bulut, Jr., she said the agreement stands as a testament to the mutual commitment to ensuring the equitable distribution of financial benefits derived from businesses in the region.
Representing the generating companies, VP James Manimtim underscored how stakeholder partnerships can help accelerate sustainable development in the region. “This strengthens SNAP’s commitment to energizing a sustainable future,” he added.
The DOE’s ER 1-94 is a program that gives one-centavo share for every kilowatt-hour (PhP0.01/kWh) of the total electricity sales of a power-generating company to their host communities. Of the one centavo per kilowatt-hour, fifty percent (P0.005/kWh) will be used in the electrification of the community; twenty five percent (P0.0025/kWh) will be earmarked for the Development and Livelihood Fund (DLF); and the other twenty five percent (P0.0025/kWh) will be allocated for Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF). RDC-CAR is a beneficiary of SNAP-Benguet and SNAP-Magat under this program.
