The Energy Development Corp. (EDC) has established trust accounts for the local government units (LGUs) of Ormoc City and Kananga in Leyte for hosting the company’s power projects.
A memorandum of agreement was signed in compliance with the Department of Energy’s (DOE) Circular No. DC2018-08-0021 that requires energy generation companies and energy resource developers to directly provide monetary benefits, equivalent to P0.01 per kilowatt hour (kWh) of total electricity sales to their host communities.
The circular is meant to accelerate the LGUs’ socio-economic development through ugh a more efficient utilization of the funds. Proceeds were previously deposited to the DOE for disbursement to LGUs.
Under the Electric Power Industry Reform Act, 25 percent of the total electricity sales shall be set aside for a development and livelihood fund and another 25 percent shall be set aside for the reforestation, watershed management, health and environment enhancement fund.
The host barangays are required to submit their annual work program for the tangible projects where the funds will be used. They are also required to report on the status of the projects at the end of each year.
“Being able to directly disburse our partner communities’ benefits as hosts of our geothermal facilities will also help us strengthen our relationship with them as we provide them with the necessary guidance on the use of the funds for community projects” said Allan Barcena, EDC head of corporate social responsibility and public relations group.
EDC said while the exact amount is still being computed, the money will be directly remitted to beneficiaries on a quarterly basis beginning this year for hosting the firm’s 711 megawatts (MW) Leyte geothermal project.
The facility is EDC’s biggest geothermal power plant which also possesses the world’s largest geothermal steamfield to date. It currently supplies more than 30 percent of the country’s installed geothermal capacity.
EDC, with a total attributable capacity of 1,471.8 MW, is the country’s largest producer of geothermal energy and also has projects from wind, solar and hydro resources.
