Gov’t eyes expanded function for NEA

The government is moving to amend the charter of the National Electrification Administration so that it may be able to provide assistance to cooperatives that are independent of its supervision.

Energy Undersecretary Ina Magpale-Asirit told Malaya Business insight the charter amendment would allow NEA to provide technical and financial assistance even to cooperatives that are supervised by the Cooperative Development Authority (CDA).

"We want to establish a system where NEA can assist the cooperatives regardless of their nature," she said. "What we want to see is to enhance the capacity of NEA."

Electric cooperatives have the option to either be under the supervision of NEA or declare administrative independence by registering with the CDA.

Cooperatives must present evidence of financial and technical capacity to be independent before it can register with the CDA. CDA members are entitled to tax incentives, which could translate to lower power rates.
Out of the 119 electric cooperatives in the country, only nine are registered with the CDA and the rest are under the supervision of NEA.

http://bit.ly/ngtNpU