Bilyonaryo - Business

Devanadera wants LGUs to fund generation projects

Energy Regulatory Commission chairperson Agnes Devanadera, one of the contenders for the post of Secretary of the Department of Energy, is urging the government to allow local government units (LGU) to fund generation projects.
Devanadera said there are still areas around the country which remain unserved or areas with no electricity.
“In order to help the national government’s efforts to expand its electrification program, there should be a policy that allows LGUs to fund generation projects,” she said.
In her proposal to the new administration, Devanadera said these projects would not be operated similar to privately-owned generation companies wherein the return of investment is allowed.
“These projects being funded by LGUs shall only be allowed to recover rates that will cover the cost of operations and maintenance of the plant, as well as cost for replacement of major parts, in order to ensure that the plant is running efficiently with minimized risk of outage for the development of the local community,” she said.
If recovery is limited to operations and maintenance only, Devanadera said the projected rate for generation cost is lower by 45% compared to projects funded fully by private entities.
Devanadera has raised several proposals to incoming President Ferdinand “Bongbong” Marcos to help bring down power costs.