Proposed

Policy
on
Electric
Cooperatives Resiliency Program

I. Rationale
The pursuit of total electrification in the country through the electric
cooperatives by way of enhancing distribution development under RA
10531 has to heavily consider the effect of climate change.
The effect of climate change can no longer be avoided as evidenced
by the occurrence of natural disasters and calamities brought by force
majeure events such as typhoons, storms and tropical depressions that
tend to increase in intensity with the passage of time. More often
these disasters and calamities damage/destroy ECs distribution lines
and other vital facilities. Typhoon Yolanda with its 290 km per hour
strength destroyed vast portion of ECs distribution system along its
path. This effect of climate change on weather condition is now termed
as the New Normal which will now be considered in the design and
construction of EC distribution system.

I. Rationale
Man-made calamities and disasters due to fortuitous events
such as war, sabotage, and insurrection are other events that
result in the destruction of EC electrical facilities. The
Zamboanga siege is an example where millions worth of EC
line materials were destroyed.
There is now a paramount need for the EC to come up with
materials and equipment buffer stock for emergency response
for the repair and rehabilitation of damaged distribution lines
and restoration of electric service soonest after the occurrence
of force majeure and/or fortuitous event.

II. Objectives
To ensure the availability of vital materials and
equipment for immediate restoration/rehabilitation
of distribution lines damaged by disasters and
calamities.
To establish ample stock of materials and
equipment for emergency response in the
rehabilitation/ restoration of distribution lines
damaged by natural or man-made disasters and
calamities.
To assure that buffer stock of materials and
equipment specifications for distribution lines
restoration are in conformity with the Build Back
Better scheme.

III. Policy
Recognizing the frequent occurrence of
natural calamities as the new normal, it is
declared that electric cooperatives shall set
up a Disaster Resiliency Program and
towards this end EC shall:
a. Build a pool of linemen & electricians on
a regional basis, to do emergency power
restoration works in times of calamities and
in normal times, do sub-villages &
households electrification projects.

III. Policy
b. Establish a buffer stock composed
of poles, insulated conductors,
distribution transformers, electronic
KwH meters & service wires
c.
Prepare
distribution
electric
system design in conformity with the
Build Back Better scheme.

III. Policy
d.
Institute
a
Regional
Procurement
association
to
undertake the procurement of the
identified buffer stock materials
e. Identify cost recovery for buffer
stock and mobilization

IV. Scope

This rule shall apply to

all electric cooperatives.

V. Definition of Terms
1. Force majeure an event that is a result of elements of nature
that cannot be reasonably anticipated or controlled, such as a
typhoon, storm, tropical depression, flood, drought, volcanic
eruption, earthquake, tidal wave or landslide.
2. Fortuitous event shall refer to an act of war (declared or
undeclared), sabotage, blockade, revolution, riot, insurrection,
civil commotion or any violent or threatening action.

3. Buffer stock -supply of materials held as reserveagainst

shortages to be utilized during emergency like typhoons and
other calamities.
4. Build Back Better scheme - the reconstruction/restoration of
the lines stronger than the old/damaged structure. This involves
the design and construction of the lines with primary
consideration on the strength of the materials and shorter
spanning of the distribution line structure.
5. Three phase (3) - In a distribution line, it represents a
backbone or primary line with three (3) or four (4) conductors
depending on whether the system is delta or grounded wye.

VI. Mechanics of
Implementation
A. Materials and Equipment

1. The five items (pole, insulated conductor, distribution transformer,

electronic KwH meter & service wire) are considered for the buffer
stock on the basis of their importance, availability and length of
production time.

2. Quantity of buffer stock will be equivalent to the 2%-6%, 10% and

20% of the ECs linear kilometer of 3 distribution length of lines.
3. Costing will be based on the NEA Material Price Index.

Material specification and construction works should conform to NEA

standards.

Insulated Conductor #4/0 ACSR and Bare conductor #2/0 ACSR , and
Steel Poles equivalent to Class 3 Wood Poles were used in the study.

VI. Mechanics of
Implementation
B. Funding

The EC will establish a sinking fund for the buffer stocks, mobilization
fund and any attributable cost and expenses for the immediate
restoration/rehabilitation of distribution lines/system due to force majeure
and fortuitous events.
1. Buffer Stock

The buffer stocks and expenses for force majeure and fortuitous events of
ECs will be submitted to ERC as part of the CAPEX Plan and or to be
sourced from RFSC (additional).
2. Mobilization Fund
EC to put up a sinking fund
to
immediate deployment of personnel
calamities/emergencies.

cover mobilization fund for

& vehicles in time of

For both funding requirements, NEA may provide a loan to ECs to help
finance acquisition of buffer stocks, and other attributable cost and
expenses (mobilization fund) to be used for the immediate
restoration/rehabilitation of distribution lines/system due to force majeure
and/or fortuitous events.

VII. Procedure of
Procurement

1. The procurement of materials must be done on a Regional basis.

Each EC within the region should determine its buffer requirements
for pole, conductor, distribution transformer, KwH meter and service
wire.
2. Bids and Awards Committee (BAC) from the region composed of the
member ECs must be created.
3. The bidding of the total requirements of all ECs in the region must be
centralized. It can be on a per lot/material basis. It must be
published in a newspaper of national general circulation.
4. However, contract will be made individually or between each EC and
the supplier, thus, the awarding of the contract is on a per EC basis.
5. Delivery of materials will also be done by the supplier per EC.
6. Each EC must pass a Resolution requesting the Regional Association
to conduct for the procurement of materials in their behalf before the
bidding process.
7. Bidding procedure must be in accordance with NEA Memorandum
No. 2005-030 on the Procurement Guidelines for Electric
Cooperatives dated 07 October 2005.
8. Replenishment shall be made when the materials were used.

 Advantages of Regional Basis

over a per EC basis
Volume Discounts Inherent in Bulk
Purchasing (Economies of Scale)
Fly-By-Night Suppliers will be avoided
Better Quality Control
Easier NEA supervision because of the
aggregated procurement

VIII. References
1.

PHILATMEC Proposal for EC Buffer Stock

dated June 3, 2014
The 10% and 20% basis is from the study made by the Philippine
Association of Technical Managers of Electric Cooperatives
(PHILATMEC) with the consideration of historical data regarding the
scope of damage incurred from previous disasters and calamities
brought by typhoons, tropical depressions, earthquake and manmade civil stripes. Among these are typhoons Reming in 2006,
Frank in 2008, Pepeng in 2009, Juan in 2010, Pablo in 2012, Santi,
Vinta and Yolanda in 2013 and recently Glenda. Also, the Bohol
earthquake and the Zamboanga City siege in 2013.
The 10% and 20% is a conservative figure as actual cost of
damage materials is more than 10% and 20% of the ECs
distribution system. The proposed 10% and 20% buffer stock is just
the initial material requirement to immediately launch
reconstruction/restoration activities of the backbone line.

The 10% buffer stock when expressed in

kilometers represents a total of 2,042 kilometers
or an average of 21 kilometers for 99 ECs as of
December 2013.

CLASSIFICATION

Mega
Large
Extra
Large
Large
Medium
Small
National

TOTAL
NO. OF
EC

10%
BUFFER
STOCK(K
M)

TOTAL NO. OF
EC x 10%
BUFFER
STOCK(KM)

100%
BUFFER
STOCK
(KM)

45

25

1,125

250

27

22

581

215

16
7
4
99

17
8
5
75.5

264
52.5
20
2042

165
75
50
755

Likewise, the 20% buffer stock when expressed in

kilometers represents a total of 4,084 kilometers
or an average of 42 kilometers for 99 ECs as of
December 2013.

CLASSIFICATI
ON

Mega
Large
Extra
Large
Large
Medium

TOTAL
NO. OF
EC

20%
BUFFER
STOCK
(KM)

TOTAL NO.
OF EC x
20%
BUFFER
STOCK(KM
)

100%
BUFFER
STOCK
(KM)

45

50

2,250

250

27

43

1,161

215

16
7

33
15

528
105

165
75

2. NEA Equipment/Material (E/M)

Price Index
The Material Price Index is being
used by NEA in the evaluation and
processing of EC projects funded by
subsidy and loans. Also, it is the Ecs
guide in their procurement of
materials and equipment.

In the case of the buffer stock, where only five primary

materials and equipment are included, their unit costs
were taken from the said NEA Equipment/Material Price
Index. These are as follows:
Item

Description

Unit Cost, PhP

Conductor #4/0
ACSR
Conductor #2/0
ACSR
Transformer
Kwh Meters

Steel
Wood
Steel
Wood
Bare
Insulated
Bare
Insulated
25 kVA
Electronic

18,000
18,500
25,000
25,500
62/meter
350/meter
40/meter
56/meter
78,000
1,400

Service Wire

# 6, duplex

22/meter

Pole, Class 3- 35 ft.

Pole, Class 3- 40 ft.

3.EC Kilometer of Line Report as of December 2013

This report is the source of the line lengths in kilometers of

the ECs and was used in obtaining the kilometer
equivalent of 10% and 20% figures in determining the ECs
buffer stock. The ECs submitted Monthly Engineering
Report (MER) is being reviewed and evaluated by the
Engineering Department and the output is the EC
Kilometer of Line Report. Attached is the profile EC
Kilometer of Line Report.

4.EC No. of Household Report

This report is the source of the number of households of
the ECs and was used in obtaining the number of kilowatthour meters equivalent to the 10% and 20% figures. The
report is being generated from data and updates
submitted by ECs on a monthly basis or as needed by the
responsible NEA departments such as IT and IDD.

5.

Build Back Better Scheme

The concept of the Build Back Better Scheme includes:

building up a pool of linemen & electricians on a regional basis, who can do
emergency power restoration works in times of calamities & in normal times, do
the sitio & households electrification projects.
Determining the appropriate material buffer stock of an EC depending on its
size. This will be part of the EC CAPEX plan.
Work with the Regulator to allow the EC to put up a sinking fund to cover
mobilization & immediate deployment of personnel & materials in time of
calamities/emergencies.
Preparation of Electrical Distribution System Design that can withstand for about
300 kms/hr wind velocity

6. Methodology in Determining the Buffer Stock

A. Materials:

1) Poles and Conductors equivalent to 10% and 20% of the 3 km.

of line with design parameters as follows:
Spanning : 50 meters pole spanning
Conductor size: Phase # 4/0 ACSR (Insulated)
Neutral # 2/0 ACSR (Bare)
Ultimate Yield Strength: 450 MPA
2) Distribution transformer equivalent to 2 units of 25KVA per km.
of lines

6. Electronic KwH Meters equivalent to 10% and 20% of connected

consumers

1) Service wire equivalent to 30 meters #6 Duplex wire for every

consumer

B. Material Quantity and Cost Estimates

1) For every 1 Km. Three Phase Line:
Item

Unit Cost
(PhP)

Quantity

Total Price
(PhP)

18,500
25,500

18
2

333,000
51,000

350/m

3,000 m

1,050,000

40/m

1,000 m

40,000

78,000

156,000

Pole
35 ft.
40 ft.
Conductor
#4/0 ACSR (Insulated)
#2/0 ACSR (Bare)
Distribution transformer, 25 KVA

Total

1,630,000

2) For every Consumer Connection:

Item
KwH meter
#6 Duplex (service wire)

Unit Cost
(PhP)
1,400
22/m

Quantity
1
30
Total

Total Price
(PhP)
1,400
660
2,060

IX. Cost Recovery

Option 1: Separate tariff for
Buffer Stock and Mobilization
Option 2: Combined tariff for
Buffer Stock and Mobilization

OPTION 1 - Separate tariff for Buffer Stock and

Mobilization
A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 2% of the Cost of the 3 Phase
Insulated Single Circuit Distribution Line in the Total Amount of P
INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (2% OF TOTAL BACKBONE
664,626,306.20
LINES)

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
NO. OF
3PHASE LINES
@1.63Million /KM
EC
(KM)
(PHP)

2 % OF
3PHASE
LINES (KM)

Cost(Php)/KWhr
Buffer Stock Cost
(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

225.4

367,255,412.40

0.04

0.02

0.01

0.01

0.01

EXTRA-LARGE

27

5,747

9,428,882,295

115

188,577,646.00

0.09

0.05

0.03

0.03

0.02

LARGE

16

2,630

4,286,650,930

52.6

85,733,018.60

0.20

0.10

0.07

0.05

0.05

MEDIUM

524

853,847,790

10.6

17,076,955.80

0.16

0.08

0.06

0.05

0.04

SMALL

184

299,163,680

3.8

5,983,273.60

0.27

0.14

0.10

0.07

0.06

99

20,351

33,231,315,310

407

664,626,306.20

0.06

0.03

0.02

0.02

0.01

NATIONAL

OPTION 1 - Separate tariff for Buffer Stock and

Mobilization
A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 3% of the Cost of the 3 Phase
Insulated Single Circuit Distribution Line in the Total Amount of P
INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (3% OF TOTAL BACKBONE
996,939,459.30
LINES)

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
NO. OF
3PHASE LINES
@1.63Million /KM
EC
(KM)
(PHP)

3 % OF
3PHASE
LINES (KM)

Cost(Php)/KWhr
Buffer Stock Cost
(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

338.10

550,883,118.60

0.06

0.03

0.02

0.02

0.02

EXTRA-LARGE

27

5,747

9,428,882,295

172.50

282,866,469.00

0.14

0.07

0.05

0.04

0.03

LARGE

16

2,630

4,286,650,930

78.90

128,599,527.90

0.30

0.15

0.11

0.08

0.07

MEDIUM

524

853,847,790

15.90

25,615,433.70

0.25

0.13

0.09

0.07

0.06

SMALL

184

299,163,680

5.70

8,974,910.40

0.41

0.21

0.14

0.11

0.09

99

20,351

33,231,315,310

610.50

996,939,459.30

0.09

0.05

0.03

0.02

0.02

NATIONAL

OPTION 1 - Separate tariff for Buffer Stock and

Mobilization
A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 4% of the Cost of the 3 Phase
Insulated Single Circuit Distribution Line in the Total Amount of P
INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (4% OF TOTAL BACKBONE
1,329,252,612.40
LINES)

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
4 % OF
NO. OF
3PHASE LINES
@1.63Million /KM
3PHASE
EC
(KM)
(PHP)
LINES (KM)

Cost(Php)/KWhr
Buffer Stock Cost
(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

450.80

734,510,824.80

0.08

0.04

0.03

0.02

0.02

EXTRA-LARGE

27

5,747

9,428,882,295

230.00

377,155,292.00

0.18

0.10

0.06

0.05

0.04

LARGE

16

2,630

4,286,650,930

105.20

171,466,037.20

0.40

0.20

0.14

0.11

0.09

MEDIUM

524

853,847,790

21.20

34,153,911.60

0.33

0.17

0.12

0.09

0.08

SMALL

184

299,163,680

7.60

11,966,547.20

0.54

0.28

0.19

0.15

0.12

99

20,351

33,231,315,310

814.00

1,329,252,612.40 0.12

0.06

0.04

0.03

0.03

NATIONAL

OPTION 1 - Separate tariff for Buffer Stock and Mobilization

A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 5% of the Cost of the 3 Phase Insulated Single
Circuit Distribution Line in the Total Amount of P 1,661,565,765.50

INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (5% OF TOTAL BACKBONE

LINES)

Cost(Php)/KWhr

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
NO. OF
3PHASE LINES
@1.63Million /KM
EC
(KM)
(PHP)

5 % OF
3PHASE
LINES
(KM)

Buffer Stock Cost

(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

563.50

918,138,531.00

0.11

0.06

0.04

0.03

0.03

EXTRA-LARGE

27

5,747

9,428,882,295

287.50

471,444,115.00

0.23

0.12

0.08

0.07

0.06

LARGE

16

2,630

4,286,650,930

131.50

214,332,546.50

0.50

0.26

0.18

0.14

0.12

MEDIUM

524

853,847,790

26.50

42,692,389.50

0.41

0.21

0.15

0.12

0.10

SMALL

184

299,163,680

9.50

14,958,184.00

0.68

0.35

0.24

0.19

0.16

99

20,351

33,231,315,310

0.15

0.08

0.05

0.04

0.04

NATIONAL

1,017.50 1,661,565,765.50

OPTION 1 - Separate tariff for Buffer Stock and Mobilization

A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 6% of the Cost of the 3 Phase Insulated Single
Circuit Distribution Line in the Total Amount of P 1,993,878,918.60

INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (6% OF TOTAL BACKBONE

LINES)

Cost(Php)/KWhr

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
NO. OF
3PHASE LINES
@1.63Million /KM
EC
(KM)
(PHP)

6 % OF
3PHASE
LINES
(KM)

Buffer Stock Cost

(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

676.20

1,101,766,237.20

0.13

0.07

0.04

0.04

0.03

EXTRA-LARGE

27

5,747

9,428,882,295

345.00

565,732,938.00

0.28

0.14

0.10

0.08

0.07

LARGE

16

2,630

4,286,650,930

157.80

257,199,055.80

0.59

0.31

0.21

0.16

0.14

MEDIUM

524

853,847,790

31.80

51,230,867.40

0.49

0.25

0.17

0.14

0.11

SMALL

184

299,163,680

11.40

17,949,820.80

0.81

0.42

0.29

0.22

0.19

99

20,351

33,231,315,310

0.17

0.09

0.06

0.05

0.04

NATIONAL

1,221.00 1,993,878,918.60

OPTION 1 - Separate tariff for Buffer Stock and Mobilization

A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 10% of the Cost of the 3 Phase Insulated
Single Circuit Distribution Line in the Total Amount of P 3,232,131,531

INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (10% OF TOTAL BACKBONE

LINES)

Cost(Php)/KWhr

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
NO. OF
3PHASE LINES
@1.63Million /KM
EC
(KM)
(PHP)

10 % OF
3PHASE
LINES (KM)

Buffer Stock Cost

(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

1,127

1,836,277,062

0.21

0.11

0.07

0.06

0.05

EXTRA-LARGE

27

5,747

9,428,882,295

575

942,888,230

0.46

0.24

0.16

0.13

0.11

LARGE

16

2,630

4,286,650,930

263

428,665,093

0.99

0.51

0.35

0.27

0.23

MEDIUM

524

853,847,790

53

85,384,779

0.82

0.42

0.29

0.23

0.19

SMALL

184

299,163,680

19

29,916,368

1.35

0.70

0.48

0.37

0.31

99

20,351

33,231,315,310

2,035

3,323,131,531

0.29

0.15

0.10

0.08

0.07

NATIONAL

OPTION 1 - Separate tariff for Buffer Stock and Mobilization

A. Buffer stock cost (PhP) and incremental rate (PhP/KwH)
Simulation on the Recovery of the 20% of the Cost of the 3 Phase Insulated
Single Circuit Distribution Line in the Total Amount of P 6,646,263,062

INCREMENTAL COST(PHP)/KWHR OF BUFFER STOCK (20% OF TOTAL BACKBONE

LINES)

Cost(Php)/KWhr

CLASSIFICATIONS

TOTAL
100% OF
100% OF TOTAL COST
NO. OF
3PHASE LINES
@1.63Million /KM
EC
(KM)
(PHP)

20 % OF
3PHASE
LINES (KM)

Buffer Stock Cost

(PHP)

Recovery Period
1 YR

2YRS

3YRS

4YRS

5YRS

MEGA-LARGE

45

11,266

18,362,770,615

2,253.00

3,672,554,123

0.41

0.21

0.14

0.11

0.09

EXTRA-LARGE

27

5,747

9,428,882,297

1,149.00

1,885,776,459

0.92

0.47

0.32

0.25

0.21

LARGE

16

2,630

4,286,650,930

526.00

857,330,186

1.97

1.02

0.70

0.54

0.45

MEDIUM

524

853,847,790

105.00

170,769,558

1.63

0.84

0.58

0.45

0.37

SMALL

184

299,163,680

37.00

59,832,736

2.70

1.39

0.96

0.74

0.61

99

20,351

33,231,315,313

4070.00

6,646,263,062

0.57

0.29

0.20

0.16

0.13

NATIONAL

OPTION 1 - Separate tariff for Buffer Stock and

Mobilization

Mobilization Fund According to EC Classification

and Collection Period
Local Contractor
Cost (Php)/KWHr
EC
CLASSIFICATION

AVERAGE MONTHY
MOBILIZATION KWHR SALES PER
EC CLASSIFICATION
COST
(2013)

RECOVERY PERIOD

1 YEAR
MEGA-LARGE
EXTRA-LARGE
LARGE
MEDIUM
SMALL
NATIONAL

2,475,000.00
2,025,000.00
1,575,000.00
1,125,000.00
675,000.00
7,875,000.00

17,783,884
6,727,681
2,408,305
1,325,650
492,136
28,737,656

0.01
0.03
0.05
0.07
0.11
0.02

2 YEARS 3 YEARS 4 YEARS 5 YEARS

0.01
0.01
0.03
0.04
0.06
0.01

0.00
0.01
0.02
0.02
0.04
0.01

0.00
0.01
0.01
0.02
0.03
0.01

0.00
0.01
0.01
0.01
0.02
0.00

OPTION 2 Combined tariff for Buffer Stock (2%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.05

0.03

0.02

0.01 0.01

EXTRA-LARGE

0.12

0.06

0.04

0.03 0.03

LARGE

0.25

0.13

0.09

0.07 0.06

MEDIUM

0.23

0.12

0.08

0.06 0.05

SMALL

0.38

0.20

0.13

0.10 0.08

NATIONAL

0.08

0.04

0.03

0.02 0.02

OPTION 2 Combined tariff for Buffer Stock (3%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.07

0.04

0.02

0.02 0.02

EXTRA-LARGE

0.16

0.08

0.06

0.05 0.04

LARGE

0.35

0.18

0.12

0.09 0.08

MEDIUM

0.32

0.16

0.11

0.09 0.07

SMALL

0.52

0.27

0.18

0.14 0.12

NATIONAL

0.11

0.06

0.04

0.03 0.03

OPTION 2 Combined tariff for Buffer Stock (4%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.10

0.05

0.03

0.03 0.02

EXTRA-LARGE

0.21

0.11

0.07

0.06 0.05

LARGE

0.45

0.23

0.16

0.12 0.10

MEDIUM

0.40

0.20

0.14

0.11 0.09

SMALL

0.65

0.34

0.23

0.18 0.15

NATIONAL

0.14

0.07

0.05

0.04 0.03

OPTION 2 Combined tariff for Buffer Stock (5%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.12

0.07

0.04

0.03 0.03

EXTRA-LARGE

0.26

0.13

0.09

0.08 0.07

LARGE

0.55

0.29

0.20

0.15 0.13

MEDIUM

0.48

0.25

0.17

0.14 0.11

SMALL

0.79

0.41

0.28

0.22 0.18

NATIONAL

0.17

0.09

0.06

0.05 0.04

OPTION 2 Combined tariff for Buffer Stock (6%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.14

0.08

0.04

0.04 0.03

EXTRA-LARGE

0.31

0.15

0.11

0.09 0.08

LARGE

0.64

0.34

0.23

0.17 0.15

MEDIUM

0.56

0.29

0.19

0.16 0.12

SMALL

0.92

0.48

0.33

0.25 0.21

NATIONAL

0.19

0.10

0.07

0.06 0.04

OPTION 2 Combined tariff for Buffer Stock (10%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.22

0.12

0.07

0.06 0.05

EXTRA-LARGE

0.49

0.25

0.17

0.14 0.12

LARGE

1.04

0.54

0.37

0.28 0.24

MEDIUM

0.89

0.46

0.31

0.25 0.20

SMALL

1.46

0.76

0.52

0.40 0.33

NATIONAL

0.31

0.16

0.11

0.09 0.07

OPTION 2 Combined tariff for Buffer Stock (20%)

and Mobilization

CLASSIFICATION

Cost (Php)/KWHr
RECOVERY PERIOD
1 YEAR 2 YEARS 3 YEARS 4 YEARS

5
YEARS

MEGA-LARGE

0.42

0.22

0.14

0.11 0.09

EXTRA-LARGE

0.95

0.48

0.33

0.26 0.22

LARGE

2.02

1.05

0.72

0.55 0.46

MEDIUM

1.70

0.88

0.60

0.47 0.38

SMALL

2.81

1.45

1.00

0.77 0.63

NATIONAL

0.59

0.30

0.21

0.17 0.13

X. Mobilization Fund for Rehabilitation

Utilizing Local Contractor
A. Assumptions:
1) Number
of
Teams
per
EC
Classification
Small (S)

3 teams
Medium (M)
5 teams
Large (L)

7 teams
Extra-Large (EL)
9 teams
Mega-Large (ML) 11 teams
2) Each team is composed of 6
members complete with boom truck,

3) Fuel Cost per crew is PhP750/day

4) Labor cost per personnel is PhP 500/day
5) Meal cost will be shouldered by the
contractor.
6) 1 team can build 500 meters of 3 Phase line
per day

SUMMARY OF ESTIMATED COST OF

MOBILIZATION FUND PER CLASSIFICATION
(Local Contractor)

Estimated Cost of Mobilization Fund for

Rehabilitation Utilizing the Local Contractor
(LC) per Classification

1) Computation for Small EC:

1. Fuel Cost =
60 days x 3 teams x PhP 750 / day
=
PhP 135,000
2. Labor Cost =
60 days x 3 teams x 6 personnel x PhP
500/day
=
PhP 540,000

Total Cost = Fuel Cost + Labor Cost

Total Cost = PhP 135,000+ PhP 540,000
Total Cost = PhP 675,000

2) Computation for Medium EC:

1. Fuel Cost =
60 days x 5 teams x PhP 750 / day
=
PhP 225,000
2. Labor Cost
=
60 days x 5 teams x 6 personnel x
PhP 500/day
=
PhP 900,000

Total Cost = Fuel Cost + Labor Cost

Total Cost = PhP 225,000 + PhP 900,000
Total Cost = PhP 1,125,000

3) Computation for Large EC:

1. Fuel Cost =
60 days x 7 teams x PhP 750 / day
=
PhP 315,000
2. Labor Cost
=
60 days x 7 teams x 6 personnel x
PhP 500/day
=
PhP 1,260,000

Total Cost = Fuel Cost + Labor Cost

Total Cost = PhP 315,000+ PhP 1,260,000
Total Cost = PhP 1,575,000

4) Computation for Extra Large EC:

1. Fuel Cost =
60 days x 9 teams x PhP 750 / day
=
PhP 405,000
2. Labor Cost
=
60 days x 9 teams x 6
personnel x PhP 500/day
=
PhP 1,620,000

Total Cost = Fuel Cost + Labor Cost

Total Cost = PhP 405,000+ PhP 1,620,000
Total Cost = PhP 2,025,000

5) Computation for Mega Large EC:

1. Fuel Cost =
60 days x 11 teams x PhP 750 / day
=
PhP 495,000
2. Labor Cost
=
60 days x 11 teams x 6
personnel x PhP 500/day
=
PhP 1,980,000

Total Cost = Fuel Cost + Labor Cost

Total Cost = PhP 495,000+ PhP 1,980,000
Total Cost = PhP 2,475,000

C. PhP / kWhr Mobilization Fund

According to EC Classification and
Collection Period
Local Contractor
Cost (Php)/KWHr
MONTHS RECOVERY PERIOD

EC
CLASSIFICATION

MEGA-LARGE
EXTRA-LARGE
LARGE
MEDIUM
SMALL
NATIONAL

MOBILIZATION
COST

AVERAGE
MONTHY KWHR
SALES PER EC
5
3
10
12
CLASSIFICATION 1 MONTH
MONTH
MONTHS
MONTHS
MONTHS
(2013)
S

2,475,000.0 17,783,88
0
4
2,025,000.0
6,727,681
0
1,575,000.0
2,408,305
0
1,125,000.0
1,325,650
0
675,000.00 492,136
7,875,000.0 28,737,65
0
6

0.14

0.05

0.03

0.01

0.01

0.30

0.10

0.06

0.03

0.03

0.65

0.22

0.13

0.07

0.05

0.85

0.28

0.17

0.08

0.07

1.37

0.46

0.27

0.14

0.11

0.27

0.09

0.05

0.03

0.02

D. Accomplishment Rate on 3 Phase Single Circuit

Distribution Line per EC Classification (Local
Contractor)
EC
Daily Completion
Number
Number
Classifica
Rate
of Teams
of Days
tion
(Meters/Day)

KM
completed
in 60 days

Small

500

60

90

Medium

500

60

150

Large

500

60

210

500

60

270

11

500

60

330

ExtraLarge
MegaLarge

*Assumption: no rest day for the team