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The 27th Status Report on EPIRA implementation covers the period May . Grid Corporation of the Philippines (NGCP), Republic Act No. An Act Ordaining Reforms in the Electric Power Industry, Amending for the purpose certain laws /. ELECTRIC POWER INDUSTRY REFORM ACT OF Project Management Consultancy of the Philippine WESM, and (2) Procurement and Installation of.

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Historical Background

Retail Competition and Open Access. Any violation phjlippines shall be subject to the fines and penalties imposed herein. The market operator shall be an autonomous group, to be constituted by DOE, with equitable representation from electric power industry participants, initially under the administrative supervision of the TRANSCO. Electric Power Crisis Provision – Upon the determination by the President of the Philippines of an imminent shortage of the supply of electricity, Congress may authorize, thhrough a joint resolution, the establishment of additional generating capacity under such terms and conditions as it may approve.

For existing companies, philipipnes public offering shall be implemented not later than five 5 years from the effectivity of this Act.

Yet many sectors still glamorize that dark era of state monopoly and endless fiscal deficits. Three, from to last six yearspower generation has expanded 1.

That September dip was in fact the lowest since Octoberwhen record rainfall levels close to high power-consuming Metro Manila brought kaw cooler weather, oaw also led to higher dispatch of cheap hydroelectric power. Any distribution utility which opts to recover stranded cost shall have a duty to mitigate its potential stranded contract costs by making reasonable best efforts to: Such fees shall phili;pines fixed by the ERC after due notice and public hearing.

Upon the initial implementation of open access, the ERC shall allow all electricity end-users located in Luzon with a maximum demand of at least two megawatts 2MW to be the contestable market. Creation of the Energy Regulatory Commission.

All employees of NPC affected by the passage of this Act shall be entitled to avail of the privileges provided under the NPC separation plan existing as of January 1, Any end-user or self-generating entity not connected to a distribution utility shall remit its corresponding universal charge directly to the TRANSCO.

De-monopolization and Shareholding Dispersal. The ERC shall, within sixty 60 days from the effectivity of this Act, promulgate the rules and regulations to implement and effect this provision. Provided, finally, That separate accounts are maintained for each business undertaking to ensure that the distribution business shall neither subsidize in any way such business undertaking nor encumber its distribution assets in any way to support such business.


The relevant distribution utility shall submit to the ERC quarterly reports showing the amount of stranded costs recovered and the balance remaining to be recovered. Provided, however, That the ERC shall have exclusive authority covering the Grid Code and the pertinent rules and regulations it may issue; d Ensure the reliability, quality and security of supply of electric power; e Following the restructuring of the electricity sector, the DOE shall, among others: These include generation, distribution, and transmission charges — the three costliest items — as well as supply, universal, system loss, and metering charges.

Highlights on the Implementation of RA No. , EPIRA of | DOE | Department of Energy Portal

Distribution Retail Wheeling Charge. Provided, however, That the other provinces, cities, municipalities, or regions shall not be deprived of their energy requirements. The WESM has in fact proven its worth, showing that it can bring prices down when there are ample supplies to fill demand. The ERC shall have the authority to modify or amend this definition of a grid when two or more of the three separate grids become sufficiently interconnected to constitute a single grid or as conditions may otherwise permit.

EPIRA has significantly changed this, moving away from a state monopoly to a competitive sector with dozens of competing players in power generation alone. For this purpose, the capital stock of NPC shall be increased to Three hundred billion pesos P,, Joint Congressional Power Commission.

Any distribution utility which opts to recover stranded cost shall have a duty lqw mitigate its potential stranded contract costs by making reasonable best efforts to:. The rates of NPC shall be unbundled between transmission and generation rates and the rates shall reflect the respective costs of providing each service.

Republic Act No. 9136

Provided, That the duration for such recovery shall not be shorter than fifteen 15 years nor longer than twenty-five 25 years. For this purpose, the authorized capital stock of NEA is hereby increased to Ten billion pesos P10,, Statement page that will show the available accessibility keys. The presence of at least three 3 members of the Commission shall constitute a quorum and the majority vote of two 2 members in a meeting where a quorum is present shall be necessary for the adoption of any rule, ruling, order, resolution, decision or other act of the Commission in the exercise of its quasi-judicial functions: Provided, That in the formulation of the financial capability standards, the nature and function of the entity shall be considered: Any balance shall initially be sourced from the Office of the President of the Philippines.


The ERC shall, motu propio, monitor and penalize any market power abuse or anti-competitive or discriminatory act or behavior by any participant in the electric power industry. Before that law, the government-owned National Power Corporation NPC was the single-biggest debtor agency and the single-biggest deficit generator, fiscally bleeding the taxpayers while providing unreliable power supply.

The amount of One hundred fifty million pesos PHP , The ERC shall verify the reasonable amounts and determine the manner and duration for the full recovery of stranded contract philiopines as defined herein: Provided, That such limitation on the recovery of generation component costs by a distribution utility shall apply only to the equivalent quality and quantity of electricity still available to the distribution utility from NPC.

Philuppines amounts collected for the universal charge shall be distributed to the respective beneficiaries within a reasonable period to be provided by the ERC. The members of the Board of Directors of the juridical companies participating in or covered in the generation companies, the distribution utilities, the TRANSCO or its concessionaire or supplier who violate the provisions of this Act may be fined by an amount not exceeding double the amount of damages caused by the offender or by imprisonment of one year or two years or both at the discretion of the court.

Applicability and Repealing Clause. Functions of the ERC. Provided, That in no case shall the rate phillippines upgraded more than once a year.

The ERC shall, in determining pjilippines existence of market power abuse or anti-competitive behavior, require from generation companies the submission of their individual pricing formulas as well as their financial statements. Provided, further, That in the case of electric cooperatives, renewals and cancellations shall remain with the National Electricity Commission under the National Electrification Epiga for five 5 more years after the enactment of this Act.

Provided, That a phillppines of the net income derived from such undertaking utilizing assets which form part of the rate base shall be used to reduce transmission wheeling rates as determined by the ERC. The minority shall be entitled to pro-rata representation but shall have at least one 1 representative in the Power Commission. Any entity engaged therein shall provide open and non-discriminatory llaw to its distribution system to all users.

Provided, That any unsold capacity shall be privatized not later than eight 8 years from the effectivity of this Act.