THE Department of Energy (DoE) said it signed a memorandum of understanding (MoU) with the Land Bank of the Philippines (LANDBANK) for the bank to receive payments from energy projects to their host communities.
“Setting up a trust account is a crucial step for these host communities to access and utilize these funds. Without an operational trust account, these communities may miss out on valuable support for local projects that could enhance infrastructure, education, health, and livelihood,” Energy Undersecretary Rowena Cristina L. Guevara said in a statement on Tuesday.
The DoE said some barangays, indigenous peoples or indigenous cultural communities in remote areas have yet to establish the required trust accounts under the Energy Regulations 1-94 (ER 1-94) Program.
ER 1-94 is intended to compensate communities for hosting energy projects.
Power generation companies contribute one centavo per kilowatt-hour of power for community electrification, livelihood, health, and environmental programs.
Under the MoU, LANDBANK has committed to waive service charges for accounts falling below the maintaining balance to ensure access to financial services.
The bank also committed to disseminate information about this special arrangement across its 607 branches and branch-lite units to ensure communities can access such services. — Sheldeen Joy Talavera