MANILA, Philippines — The solar-to-grid electrification program cast for Mindanao will corner a chunk of the P2.0 billion budget funneled to the National Electrification Administration.

Energy Secretary Rene D. Almendras disclosed that in line with President Aquino’s announcement in his State of the Nation Address (SONA) that “NEA will be strengthened,” the energy department will push for amendments in the agency’s charter so its functions can be efficiently rationalized.

The energy chief opined that the electric cooperatives must be prepared for the changing landscape in the deregulated power industry – to equip them on power supply contracting especially with the advent of open access.

“We have to go to Congress ... the NEA Charter must be amended. NEA is also amenable to this,” Almendras said, noting that if the electric coops could be turned into credit-worthy and decidedly strong players in the power industry, investments to spur countryside economic developments will also flourish.

In advancing the ‘shape-up’ strategies for the electric coops, the energy chief stressed that one vital starting point would be “to look at the best practice models employed by successful cooperatives”, including those which are not in the electricity sector.

“We have to study the options for stock cooperatives... I’d like to see an empowered electric cooperative, it (the sector) is not a low-hanging fruit yet,” the energy chief pointed out.

On next year’s budget, NEA administrator Edita S. Bueno qualified that “Mindanao gets the highest,” although “the allocation details are still being finalized.”

In regard to the proposed amendments in the NEA Charter, she explained that part of the amendment will be for the agency to exercise “stronger supervision (over the electric coops) based on the EPIRA (Electric Power Industry Reform Act) requirements.”

She added that “the revisions on the Charter are still being drafted and subject to consultation processes.”

Apart from helping the electric coops fortify their technical operations and reinforce their financial capacity, NEA has also been aiding them to keep pace with reforms in the industry, such as in their trading participation at the Wholesale Electricity Spot Market.

The shifting regulatory regime in tariff-setting is another area wherein NEA has been manifestly extending its support to the electric coops so they can ably migrate from the old regulatory set-up into the new one which is generally driven by forward-looking performance parameters.