ER 1-94 Corporate Social Responsibility Hedcor Group Sustainability COVID-19 Response

AboitizPower hydro unit utilizes P20.1M for host LGUs in Luzon and Mindanao

June 08, 2020

While a number of community quarantines throughout the country have been gradually eased, the battle against the pandemic is still far from over. Hedcor, AboitizPower’s run-of-river hydropower subsidiary, sticks to its commitment to power its host communities in Northern Luzon and Mindanao with Cleanergy.

To further assist the local communities recover from the plight of COVID-19, Hedcor is remitting a total of P20.1M of generation shares under the Energy Regulations 1-94 (ER 1-94) policy of the Department of Energy (DOE).

The ER 1-94 program allows Hedcor’s host communities to get a share of one centavo for every kilowatt-hour (P0.01/kWh) generated by Hedcor’s plant facility in the area. The revised provision of the ER 1-94 policy now allows direct remittance of funds from Hedcor to its host communities.

While generating Cleanergy, AboitizPower’s brand of clean and renewable energy, Hedcor is able to further advance its partner communities’ development through ER 1-94.

“In accordance with the Bayanihan to Heal as One Act, host LGUs can maximize ER 1-94 shares in mitigating the repercussions brought by the pandemic,” says Andy Faelnar, Assistant Vice President of Hedcor Group.

Faelnar added that the ER 1-94 funds are to be used for electrification, for development and livelihood programs, and for reforestation, watershed management, health, and environmental enhancement programs. But with the Bayanihan Act, host LGUs may now also opt to use this funding for the construction of COVID-19 facilities along with the procurement of medical testing kits and other supplies and necessities.

Additionally, Hedcor Group’s remittances before 2018 which are currently with DOE are also being downloaded by the agency to the local government units of the host communities.

Beyond the streamlining of processes, Hedcor’s direct involvement in the actualization of projects places emphasis on the strong sense of partnership between Hedcor and its host communities.

In Mindanao, the funds are to be received and utilized by over 12 barangays, four cities and municipalities, the province of Davao del Sur and Bukidnon, and Region XI. In Northern Luzon, the ER 1-94 funds are directed to host barangays in Benguet, Mt. Province and Ilocos Sur.

The assistance provided by these funds are a supplement to Hedcor’s previous three-wave relief assistance, which was conducted in support over the government’s effort to flatten the COVID-19 curve, and prioritized the distribution of ready-to-eat goods and medical supplies.