Law Summary
Expanded Powers and Functions of NEA
- NEA may require submission and certification of critical corporate documents from loan and equity investment recipients.
- Authority extended to invest and grant loans to power generation industries, including dendro-thermal and mini-hydro plants with associated infrastructures.
- Power granted to organize wholly or partly owned companies and subsidiaries for power generation, distribution, and manufacturing of related equipment.
Appointment Authority of NEA Administrator
- NEA Administrator may designate Acting General Manager or Project Supervisor in cooperatives under certain conditions.
- Such designation powers are subject to Board confirmation and cannot be overridden by cooperative's Board of Directors.
Foreign Indebtedness Regulation and Guarantee
- NEA may contract foreign indebtedness up to eight hundred million USD or equivalent.
- The President authorized to negotiate, contract, and guarantee repayment of NEA's foreign debts in the name of the Republic of the Philippines.
- Indebtedness-related payments and importations by NEA are exempt from taxes, fees, and import restrictions.
Enforcement Powers and Remedies of NEA
- NEA empowered to supervise, control, and regulate electric cooperatives and related entities.
- May conduct investigations, issue rules, and enforce compliance.
- Remedies against non-compliance include withholding loans and funds, technical assistance, foreclosure of securities, operation or leasing of foreclosed properties, and preventive/disciplinary actions.
- No borrowing by cooperatives without NEA Board approval, with exceptions for small short-term loans.
Applicability of Provisions to Other Power Entities
- Sections governing cooperatives also apply to entities such as mini-hydro and dendro-thermal plants, alcogas, tree plantations, and other NEA-supported power systems.
Supervision and Participation in Cooperative Boards
- Cooperative management vested in the Board of Directors, subject to NEA supervision and control.
- NEA entitled to representation and participation rights in Board meetings and policy approvals.
- Board members do not receive salaries but may receive per diems and expense reimbursements.
Officers of Cooperatives
- Officers include President, Vice-President, Secretary, and Treasurer, elected annually from the Board.
- Offices of Secretary and Treasurer may be held by one person concurrently.
- Officers' powers and duties prescribed by the Board in accordance with NEA policies and loan agreements.
Effectivity
- The decree takes effect immediately upon issuance.