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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Any epirra utility which opts to recover stranded cost shall have a duty to mitigate its potential stranded contract costs by making reasonable best efforts to:.

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

The ERC shall not require the distribution utility to take a loss to reduce stranded contract costs or divest assets, unless the divestiture is phiippines as a penalty as provided herein. The Chairman and the members of the Commission, upon completion of their term or upon becoming eligible for retirement under existing laws shall be entitled to the same retirement benefits and privileges provided for the Presiding Justice and Associate Justices of the Court of Appeals, respectively.

With improvements to the WESM rules and their enforcement, and the impending full implementation of retail competition and open access for consumers above kWh of power usage per month, Epira can yet bring electricity prices further down. Any law to the contrary notwithstanding, supply of electricity to the contestable market shall not be considered a public utility operation. Wholesale Electricity Spot Market. The TRANSCO shall assume the authority and responsibility of NPC for the planning, construction and centralized operation and maintenance of its high voltage transmission facilities, including grid interconnections and ancillary services.

Any violation thereof shall be subject to the fines and penalties imposed herein. Thereafter, such amount necessary for its continued operation shall be included in the annual General Appropriations Act. We reserve the right to exclude comments which are inconsistent with our editorial standards.

Epira is working

The Energy Regulatory Commission ERC eventually reversed these charges, but consumers already got a taste of what could possibly go wrong. By continuing, you are agreeing to our use la cookies.

Conversion of Electric Cooperatives. Provided, finally, That in case of disagreement on the fair market price, the ERC shall determine the fair market value of the asset. Said rules shall provide the mechanism for determining the price of electricity not covered by bilateral contracts between sellers and purchasers of electricity users.

Before that law, the government-owned National Power Corporation NPC was the single-biggest debtor agency and the single-biggest deficit generator, laaw bleeding the taxpayers while providing unreliable power supply. Read our privacy guidelines.

Highlights on the Implementation of RA No. 9136, EPIRA of 2001

Not later than one 1 year after the implementation of the wholesale electricity spot market, an independent entity shall be formed and the functions, assets and liabilities of the market operator shall be transferred to such entity with the joint endorsement of the DOE and the electric power industry participants.

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Thursday, 11 October Napocor inaugurates first mini grid in Palawan Friday, 21 September Napocor restores power to Typhoon Ompong affected islands and off-grid areas Phiilippines, 06 September Napocor remits dividends to the national coffers Thursday, 30 August Napocor terminates water spilling operations at San Roque dam.

In the case of electric cooperatives, retail competition and open access shall be implemented not earlier than five 5 years upon the effectivity of this Act.

Said fund shall be managed by NPC under existing arrangements; and. For this purpose, the capital stock of NPC shall be increased to Three hundred billion pesos P,, The wholesale electricity spot market shall be implemented by a market operator in accordance with the wholesale electricity spot market rules.

Inits charter was revised by virtue of Republic Actas amended. Significant capacity additions occurred only in with The universal charge shall be a non-bypassable charge which shall be passed on and collected from all end-users on a monthly basis by the distribution utilities. The existing personnel of the ERB, if qualified, shall be given preference in the filling up of plantilla positions created in the ERC, subject to existing civil service rules and regulations.

This suggests low productivity and efficiency under the NPC. In the grouping of the generating assets of NPC, the following criteria shall be considered: The affirmative vote of a majority of the members present in a quorum shall be adequate for the approval of any resolution, decision or order except when the Board shall agree that a greater vote is required.

Such education shall include, but not limited to, the existence of competitive electricity suppliers, choice of competitive electricity services, regulated transmission and distribution services, systems reliability, aggregation, market, itemized billing, stranded cost, uniform disclosure requirements, low-income bill payment, energy conservation and safety measures. Transfer of Powers and Functions. The Chairman and members of the Commission shall initially be entitled to the same salaries, allowances and benefits as those of the Presiding Justice and Associate Justices of the Supreme Court, respectively.

The contract shall include, but not limited to, the provision for performance and financial guarantees or any other covenants which may be required in order to fulfill the obligations of the concession contract. Any law to the contrary notwithstanding, power generation shall not be considered a public utility operation.

The Chairman and the members of the Commission shall be natural-born citizens and residents of the Philippines, persons of good moral character, at least thirty-five 35 years of age, and of recognized competence in any of the following fields: The new Board shall be composed of the Secretary of Finance as Chairman, with the following as members: The subtransmission functions and assets shall be segregated from the transmission functions, assets and liabilities for transparency and disposal: To this end, distribution utilities shall submit to the DOE their plans for serving such areas as part of their distribution development plans.


The secretariat shall be headed by an executive director who has sufficient background and competence on the policies and issues relating to electricity industry reforms as provided in this Act.

Distribution of electric power to all end-users may be undertaken by private distribution utilities, cooperatives, local government units presently undertaking this function and other duly authorized entities, subject to regulation by the ERC. In furtherance hereof, the Power Commission is hereby empowered to require the DOE, ERC, NEA, TRANSCO, generation companies, distribution utilities, suppliers and other electric power industry participants to submit reports and all pertinent data and information relating to the performance of their respective functions in the industry.

Functions of the ERC. The ERC shall, in determining the 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. EPIRA has significantly changed this, moving away from a state monopoly to a competitive sector with dozens of competing players in power generation alone. The prices to be charged by suppliers for the supply of electricity to the contestable market shall not be subject to regulation by the ERC.

The rates must be such as to allow the recovery of just and reasonable costs and a reasonable return on rate base RORB to enable the entity to operate viably. But even as contracted prices do not readily adjust to short-term market fluctuations, the WESM made it possible for consumers to still benefit immediately from this reprieve.

Provided, That, laww upon the effectivity of this Act, the Commission has not been constituted and the new staffing pattern and plantilla positions have not philippjnes approved and filled-up, the current Board philippijes existing personnel of ERB shall continue to hold office.

InNPC was converted into a stock corporation wholly owned by the government under Republic Act The ERC may extend the period for the removal of cross subsidies phiippines a maximum period of one 1 year upon finding that cessation of such mechanism would have a material adverse effect upon the public interest, particularly the residential end-user; or would have an immediate, irreparable, and adverse financial effect on distribution utility.

Separate accounts shall be maintained for each business undertaking to ensure that the transmission business shall neither subsidize in any way such business undertaking nor encumber its transmission assets in any way to support such business.

Nothing contained in this Act shall deprive electric cooperatives of any privilege or right granted to them under existing laws, particularly those under the provisions of Republic Acts No. Powers and Functions of the DOE.

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