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NEA 2018 Annual Report

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NEA 2018 Annual Report 3 Letter to the President 4 Messages 6 The Agenda toward Sustainable Development 8 -9 Strategy Map/Performance Scorecard ABOUT THE COVER 9 Statements of Compliances 10 Whistleblowing Program and Complaint Policy The cover is a creative illustration 12 Board of Administrators of NEA’s firm commitment to 14 Administrator’s Report attain its vision of sustainable 16 Independent Auditor’s Report rural development through 18 Financial Statements the implementation of the Rural 20 FINANCIAL MANAGEMENT Electrification Program (REP) that * Finance Services will redound to the benefit of the * Accounts Management and Guarantee Services Filipino people especially in the 22 INSTITUTIONAL STRENGTHENING marginalized sector of the society. * Management and Consultancy Assistance * EC Audit Services It also mirrors the vivid images that * EC Organizational Development run into the minds of the men and 24 TECHNICAL SUPPORT women of NEA and the 121 Electric * Engineering Operations Cooperatives (ECs)nationwide who * Disaster Risk Reduction Management commit themselves in making a * Total Electrification andenewable R Energy Development difference to the lives of the nearly 30 LEGAL ASSISTANCE 61 million Filipinos in 13 million * Legal Services households in the countryside. * Administrative Committee * Internal Audit and Quality Standards Management 32 SUPPORT SERVICES * Corporate Planning * Corporate and EC Training * Information Technology and Communication * Performance Assessment and Special Studies * Human Resources and Administration * Corporate Communications 40 EC Profile 44 Executive Committee/ Assembly of Leaders 50 Our Partners MESSAGE My warmest greetings to the National Electrification Administration (NEA) on the publication of its 2018 Annual Report. Over the years, NEA has been at the forefront of promoting sustainable development in the rural areas through efficient and responsive electrification of local communities and industries. Moreover, your efforts to engage electric cooperatives and consumers to become responsible stakeholders on our energy resources are also noteworthy. I acknowledge the great strides you have made in the previous year including the Sitio Electrification Program, loan assistance and capacity building for electric coperatives and NEA’s improved corporate governance, among others. As you chronicle the Agency’s accomplishments, I trust that you will be further inspired to pursue policies and programs that will support the utilization of renewable energy and help mitigage the adverse effects of climate change. Together, let us work towards achieving a stronger and more inclusive growth for the Filipino people. Congratulations and I wish you success in all your endeavors. MESSAGE Through the years, the National Electrification Administration has been working with the Department of Energy (DOE) towards fulfilling the challenge of bringing light to the homes of millions of Filipinos in rural areas of our country. 2018 has been another full year for the NEA, as well as the Electric Cooperatives (ECs) and their respective Member-Consumer- Owners (MCOs). NEA’s continued implementation of the Sitio Electrification Program and the 12.827 million consumer connections you have reached in cooperation with the 121 ECs have benefitted the lives of our kababayans throughout the archipelago. May the positive change brought about the electricity services in the lives of our fellow countrymen inspire us to go even further, and work doubly harder. Together, let us give more men, women, and most especially children in unserved and underserved areas the chance for brighter futures. As the shepherd of the country’s electric cooperatives, we hope that NEA will always embody impartial, compassionate, transparent and accountable leadership. We commend all the work you have put into strengthening our ECs. This includes the various policies and guidelines you have formulated to fortify the management and personnel, as well as the ECs’ operations, most especially their emergency and disaster response and rehabilitation capabilities through the establishment and mobilization of the Power Restoration Rapid Deployment Task Forces. Moreover, the passage of the Electric Cooperatives Emergency and Resiliency Fund Act in June last year would provide additional financial assistance which would further reinforce the energy resiliency of our ECs during calamities. You have also made significant strides as an organization in 2018, as you successfully passed the ISO 9001: 2015 Surveillance Audit on the “Provision of Financial, Institutional, Technical an Legal assistance to the Electric Coopertives which in turn undertake power distribution on an area coverage basis” and your attainment of a 90% satisfaction level, or “Very Satisfactory” in the EC Satisfaction Survey conducted by Contact Asia Services, Inc. Your accomplishments continue to encourage all members of the NEA family to remain dedicated to our collective cause of providing power nationwide. Rest assured that the DOE will not waiver in our support for all your endeavors towards this end. While good progress has been made, hard work still remains ahead. As a united energy family, let us make sure that not a single Filipino home is left in the dark. 2018 Corporate Performance Scorecard Accomplishment Weight Weighted Perspective Strategic Measure Target Actual The Performance Scorecard is one (%) Rating (%) of the compliance measures required by the Governance Commission for 1 Number of completed and energized sitio projects 25 1,817 1,984 25 GOCCs (GCG) from government- Percentage of ECs adopting balanced scorecard 90% 91% 2 5 5 owned-and-controlled corporations. It model (109 ECs) (110 ECs) Stakeholders Improved EC Overall Performance Rating (2017) from aimed to gauge the level of productivity 3 10 4 6 10 “B” or “C” to at least “A” Rating and efficiency and ensuring that good 4 Percentage of Satisfied Customers 5 90% 90% 5 Number of EC officials and employees graduated governance mechanisms are in 5 5 2,150 3,301 5 place in all government institutions. from certification/competency program 6 Amount of regular loans facilitated (PHP Billion) 8 1.70 1.98 8 Negotiated yearly between GCG and Percentage of ECs under Category B, C and D 7 5 59% 65% 5 the GOCC’s top management, the provided with loans Performance Scorecard presents in Finance 8 High collection efficiency maintained (%) 7 100% 100% 7 Percentage of sitio electrification projects funded 80% of projects full view the strategic measures of 9 that are fully compliant with NEA standards and 8 done as of end 86.23% 8 each corporation for the year, with specifications Sept. 2018 their corresponding rating. Percentage of sitios completed and energized within 10 6 80% 80.14% 6 180 calendar days from release of funds to ECs This document manifests how the Percentage of regular loans released within 11 Agency fare in its commitment to Internal Process prescribed processing periods fulfill its mandate and provide the best 11a Regular-Term Loans (within 24 days) 2 100% 100% 2 11b Short-Term Loans (within 13 days) 2 100% 100% 2 service to its clientele. 12 Percentage of calamity loans released within 7 days 2 85% 89% 2 For 2018, the Agency was able to Surveillance Audit Surveillance Audit 13 QMS ISO Certification 5 5 Passed Passed attain a total weighted (self) rating of Learning and Growth Percentage of employees with required Increase from 14 5 64.01 5 100% on the 14 measures included in competencies met Baseline the Performance Scorecard. Total 100 Total Weighted Average 100 NEA’s Whistleblowing Program and Complaint Policy was duly approved by the NEA Board of Administrators (NEA-BOA) through Board Resolution No. 57, s. of 2017 dated May 31, 2017 and correspondingly submitted to the Office of National Administrative Registry at the University of the Philippines Law Center on June 19, 2017. for filing, publication and recording. Highest Educational Qualifications: Doctorate in Business, Honoris Causa Polytechnic University of the Philippines Master in Business Administration University of the Philippines, Cebu BS in Business Administration La Salle College, Bacolod Relevant Experiences prior to appointment: • General Manager Philippine Ports Authority (PPA) • General Manager, Manila Int’l. Airport Authority (MIAA) • Director General, Civil Aviation Authority of the Philippines (CAAP) ALFONSO GABA CUSI AGUSTIN LAYOSO MADDATU Chairman, NEA-BOA Member, NEA-BOA (2016-present) Secretary, Department of Energy Age: 69 Age: 69 Date of First Appointment/ Date of First Appointment: July 1, 2016 Sworn to Office: November 18, 2016 Highest Educational Qualifications: BS in Commerce, Major in BusIness Administration University of the East, Manila Relevant Experiences prior to appointment: Highest Educational Qualifications: • Deputy Administrator for Administration, RA 1080 - Philippine Bar NEA San Sebastian Recoletos • Rural Electrification Director, NEA Institute of Law, Ateneo de Manila University • Acting General Manager, ariousv ECs • Chief of Research Division, NEA BS in Business Administration • Financial Analyst, NEA University of the Philippines, Dilliman Continuing Education Program: Relevant Experiences prior to appointment: • Corporate Governance: Board • Undersecretary, Department of Energy (DOE) Effectiveness Best Practices • Deputy Secretary General, Housing and November 9, 2018, Manila Marriot Urban Development Coordinating Council Hotel, Pasay City (HUDCC) • Introduction ot Finance for Directors, • Commissioner, Housing and
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