“Pantawid Kuryente: Katas ng VAT Program”

Ang bahagi ng Memo ng National Electrification Administration na naka-address sa lahat ng kooperatiba:

26 June 2008

MEMORANDUM No. 2008-018

TO                               :        ALL ELECTRIC COOPERATIVES (ECs)

SUBJECT                  :       Implementing Guidelines on the Release of Funds for “Pantawid                                                                                             Kuryente: Katas ng VAT” Program

1. Background

      Pursuant to the directive of Her Excellency, President Gloria Macapagal-Arroyo,           the Department of Social Welfare and Development (DSWD) will implement the        “Pantawid Kuryente: Katas ng VAT Program”, a one time subsidy to the poorest         sector of society to help them pay their electric bills.

      Accordingly, the DSWD and NEA executed a Memorandum of Agreement (MOA) for the implementation of this Program in areas covered by the electric cooperatives (ECs) nationwide. Base on the MOA, the DSWD will transfer to NEA the amount that will cover the P500 subsidy for each of the customers consuming 100 KWH per month or less with the initial release of P500M. For its      part, NEA will assist DSWD in the proper disbursement of funds to the different ECs subject to the provisions of these guidelines.

II.                Purpose

      To set the guidelines on the submission, processing, approval and release of funds          for the implementation of “Pantawid Kuryente: Katas ng VAT Program in areas         covered by the ECs.

III  Implementing Guidelines

1.      Ecs are required to submit to NEA-Institutional Development Department (IDD) the following documents:

a.       Letter request from the General Manager requesting for the release of funds.

b.      Complete list of residential customers with consumption of 100 KWH and below based on May 2008 billing duly certified by the EC Head of billing Unit and the General Manager using the attached format (Annex 1). This should include the summary of residential consumers per municipality.

c.       Duly accomplished and notarized Memorandum of Agreement (MOA) between NEA and EC.

2.      EC submission shall be evaluated/recommended by IDD, after which NEA shall release the funds in the form of cash advance subject to the usual accounting and auditing procedures on a first come, first served basis.

3.      Immediately, ECs shall issue credit memo (annex 2) to qualified consumers stating that the amount of P500 shall be applied starting June 2008 and future billings. The amount of advances shall be reflected in the consumer’s monthly billing until the total P500 shall be fully accounted for.

4.      The EC shall keep and maintain the electricity subsidy in a separate account in a reputable government bank (preferably LBP or DBP). Only the amount only actually applied during the month shall be transferred to the EC general fund.

5.      NEA, DSWD and/or the Commission On Audit shall require the submission of vouchers and other documents relevant to the subsidy and the projects as well as conduct an audit in all transaction made with respect thereto.

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