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Duterte issues EO giving President power to take over ailing electric coops

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt=" Linemen work on electrical posts on a street in Mandaluyong on September 15, 2021. George Calvelo, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/12/11/20210915-electrical-linemen-gc-5283.jpg"/><figcaption>Linemen work on electrical posts on a street in Mandaluyong on September 15, 2021. George Calvelo, ABS-CBN News/File</figcaption></figure></div><p><br/>MANILA— President Rodrigo Duterte has signed an Executive Order (EO) that would ensure reliable electricity service in the country, including empowering the chief executive to take over ailing electric cooperatives. </p><p>Duterte&#x27;s EO No. 156 signed Thursday allows the President to assume control of what could be considered as an &quot;ailing&quot; electric cooperative based on implementing rules and regulations under Republic Act No. 10531 or the National Electrification Administration (NEA) Reform Act of 2013. </p><p>NEA previously held this power. </p><p>&quot;The power to exercise step-in rights and take over the operations of ailing electric cooperatives... to improve the financial condition of such electric cooperatives, is hereby transferred to the Office of the President,&quot; the EO read. </p><p>NEA was also directed to report to the President&#x27;s office the status of ailing cooperatives within 30 days of the EO issuance. This should be done through the Department of Energy (DOE).</p><p>The DOE was, meanwhile, ordered to prioritize areas they deemed &quot;remote&quot; or unviable for electricity supply through &quot;alternative service providers or qualified third parties.&quot;</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/14/21/power-outages-not-due-lack-capacity-but-maintenance-issue">Power outages seen not due to lack of capacity but maintenance issues</a></li></ul><p>The President said this is part of mechanisms to ensure that electricity will reach inadequately served areas based on a distributor&#x27;s submitted timeline for satisfactory service (TSS).</p><p>He also mandated distribution utilities to submit a Comprehensive Electrification Master Plan (CEMP) that would lead to the &quot;total electrification&quot; of their covered franchise areas which include the following: </p><ul>	<li>Detailed inventory of inadequately served areas</li>	<li>Action plans, programs for the implementation of the area&#x27;s total electrification</li>	<li>Specific timelines for the action plan to deliver the TSS</li>	<li>Budgetary requirements and sources of funding</li></ul><p>The DOE has the power to reject or modify the CEMP if &quot;it is not in accordance with the objective of total electrification or if it will not provide the highest quality and least cost of service for providing electricity.&quot;</p><p>Last <a href="https://news.abs-cbn.com/business/06/01/21/luzon-grid-red-alert-june-1">June</a>, the country&#x27;s power grid operator implemented rotating power outages in parts of Luzon as the available capacity dropped amid the demand. </p><p>The DOE partly blamed the National Grid Corporation of the Philippines, the country&#x27;s power grid operator, for the brownouts saying the company did not contract enough backup power.</p><p>In August, meanwhile, Duterte also signed a law creating the country&#x27;s Energy Research and Policy Institute, which will be tasked with conducting research on energy and guiding government in crafting sound energy policy guidelines.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/01/21/enforcement-issues-on-power-players-contributed-to-lack-of-supply-doe">READ: &#x27;Enforcement issues&#x27; on power players contributed to lack of supply: DOE</a></li>	<li><a href="https://news.abs-cbn.com/news/08/03/21/duterte-signs-law-creating-philippine-energy-research-policy-institute">READ: Duterte signs law creating Philippine Energy Research and Policy Institute</a></li></ul><div><strong>WATCH</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1697073" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

The EO also allows the President to assume control of what could be considered as 'ailing' electric cooperatives under the National Electrification Administration (NEA) Reform Act of 2013. 