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Manila Bulletin devider Business devider NEA to step up competencies of ECs on operational planning, financial strategies

NEA to step up competencies of ECs on operational planning, financial strategies

Published Jan 30, 2024 07:24 am

At A Glance

  • As prescribed in the agreement, the ECs will be aided on: distribution system analysis, planning and design for compliance with the Philippine Grid and Distribution Codes; as well as on distribution system operation and maintenance; then on automation, control for safety, reliability, and efficiency of their operations.

Via its partnership with the National Engineering Center of the University of the Philippines (UP-NEC), the National Electrification Administration (NEA) will fortify the competencies of the electric cooperatives (ECs) on matters relating to operational planning as well as in managing financial strategies.

The NEA-UP tie up will offer competency training as well as certification programs – primarily on the sphere of electric power distribution system engineering.

“This collaboration intends to better prepare electric cooperatives in competing and operating under a deregulated electricity market, as well as strengthen their technical capability and financial viability,” the government-run electrification agency noted.

The deal was cemented via a seven-page memorandum of agreement that was recently firmed up between NEA Administrator Antonio Mariano Almeda and UP Chancellor Edgardo Carlo Vistan II.

As prescribed in the agreement, the ECs will be aided on: distribution system analysis, planning and design for compliance with the Philippine Grid and Distribution Codes; as well as on distribution system operation and maintenance; then on automation, control for safety, reliability, and efficiency of their operations.

NEA emphasized that the competency training and certification programs for the DUs will engage their board of directors, managers, engineers and human resource development personnel to become part of the capacity enhancement activities.

On the financial side of their operations, the power utilities shall also gain capacity enhancements on: distribution utility capital expenditures (capex) then operational expenses (Opex) planning; and other items that shall delve on fleshing out the economics as well as approaches on rate-making or tariff setting.

And since many ECs are still hobbled with predicaments when it comes to efficiently beefing up supply portfolios, part of the competency and training program shall likewise focus on power supply planning, procurement, contracting as well as aggregation of targeted capacity purchases.

Further, the ECs are expected to gain added insights on how they can viably leverage on supply beefing up through traded capacities in the Wholesale Electricity Spot Market (WESM); or explore their options under the Retail Competition and Open Access (RCOA) policy regime of the restructured electricity sector.

Additional items in their training program would touch on organizational skills, financial planning as well as improvements on management capabilities.

The scope of the training and technical advisory programs shall be carried out within the framework of the Electric Power Industry Reform Act (EPIRA) as well as the NEA Reform Act or the law that had reinforced the electrification agency’s supervisory mandate on the electric cooperatives.

Related Tags

University of the Philippines National Electrification Administration Electric cooperatives Certification operational capacity
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