The Department of Energy (DOE) has signed a Memorandum of Understanding (MOU) with the Landbank of the Philippines (LBP) to improve access to funds for host communities under the Energy Regulations 1-94 (ER 1-94) Program.
The agreement, signed by DOE Undersecretary Rowena Cristina Guevara and LBP Senior Vice President Althon C. Ferolino, establishes a dedicated trust account to expedite fund access for barangays, indigenous peoples (IPs), and indigenous cultural communities (ICCs) in rural areas hosting energy projects.
“Setting up a trust account is a crucial step for these host communities to access and utilize these funds,” Guevara said.
She noted that communities without these accounts miss out on funding that could improve infrastructure, education, health, and livelihoods.
Under the ER 1-94 Program, energy generation companies contribute PHP 0.01 per kilowatt-hour of generated power to support local communities near their facilities.
These funds are intended to drive social, economic, and environmental development in areas impacted by energy projects.
The DOE has identified gaps in account setup, particularly in communities near small hydropower plants and new generation sites.
Guevara emphasized that establishing trust accounts enables sustainable use of ER 1-94 funds, adding, “With LBP as our partner, assisting local leaders and community representatives in understanding the account setup process and requirements is essential to ensure they can manage and use the funds effectively.”
To address banking challenges in remote areas, LBP has pledged to waive service charges for accounts that fall below the maintaining balance.
LBP also committed to spreading awareness about the ER 1-94 support through its 607 branches and branch-lite units nationwide.
Communities and organizations that host energy projects can access three interest-bearing current accounts under the ER 1-94 Program.
The Development and Livelihood Fund (DLF) and the Reforestation, Watershed Management, Health, and Environment Enhancement Fund (RWMHEEF) provide local communities with 25% each of the total fund allocation from the program, while the remaining 50% is available through the Electrification Fund (EF) for private distribution utilities (DUs) and electric cooperatives (ECs).
“With LBP’s extensive reach, we are confident that this initiative will lead to a more efficient and effective use of our ER 1-94 funds,” Guevara said.
The DOE aims to strengthen partnerships to streamline support for ER 1-94 beneficiaries, especially IPs and ICCs, ensuring they receive consistent, accessible funding for community development projects.
