EPIRA Simplified on Maharlikanism

Cross Ownership, Market Power Abuse and Anti-Competitive Behavior

Mon, 01 Jan 0001 00:00:00 +0000

Section 45. Cross Ownership, Market Power Abuse and Anti-Competitive Behavior

No participant in the electricity industry or any other person may engage in any anti-competitive behavior including, but not limited to, cross-subsidization, price or market manipulation, or other unfair trade practices detrimental to the encouragement and protection of contestable markets.

Definition of Policy

Mon, 01 Jan 0001 00:00:00 +0000

Section 2. Declaration of Policy.

The State shall:

ensure and accelerate the total electrification of the country
ensure the quality, reliability, security and affordability of the supply of electric power
ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater efficiency and enhance the competitiveness of Philippine products in the global market
enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution
ensure fair and non-discriminatory treatment of public and private sector entities
protect the public interest as it is affected by the rates and services of electric utilities
assure socially and environmentally compatible energy sources and infrastructure
promote the utilization of indigenous and renewable energy
provide for an orderly and transparent privatization of NAPOCOR
establish a strong, independent regulatory system to ensure consumer protection and competition in the electricity market
encourage the efficient use of energy through demand-side management.

Section 3. Scope

This Act restructures the electric power industry, including:

Distribution Utilities

Mon, 01 Jan 0001 00:00:00 +0000

Section 23. Functions of Distribution Utilities DU

A DU provides distribution services and connections to its system for any end-user within its franchise area consistent with the distribution code.

It shall:

General Provisions

Mon, 01 Jan 0001 00:00:00 +0000

Section 61. Reportorial Requirements

The DOE shall take the necessary measures to ensure that the provisions of this Act are properly implemented, and shall submit to the Power Commission a semi-annual report on the implementation of this Act, on or before the last week of April and October of each year.

General Provisions

Mon, 01 Jan 0001 00:00:00 +0000

Section 68. Review of IPP Contracts

This creates an inter-agency committee chaired by:

the Secretary of Finance
the Secretary of the Department of Justice
the Director General of NEDA

The Committee shall review all IPP contracts.

Power Sector Assets And Liabilities Management

Mon, 01 Jan 0001 00:00:00 +0000

Section 49. Creation of Power Sector Assets and Liabilities Management Corporation or PSALM

This is a government-owned and -controlled corporation which shall own all existing NAPOCOR generation assets, liabilities, IPP contracts, real estate and all other disposable assets.

Privatization Of The Assets Of The National Power Corporation

Mon, 01 Jan 0001 00:00:00 +0000

Section 47. NAPOCOR Privatization

Except for the assets of SPUG, the generation assets, real estate, and other disposable assets as well as IPP contracts of NAPOCOR shall be privatized in accordance with this Act.

Promotion Of Rural Electrification

Mon, 01 Jan 0001 00:00:00 +0000

Section 57. Conversion of Electric Cooperatives

Electric cooperatives are hereby given the option to convert into either stock cooperative under the Cooperatives Development Act or stock corporation under the Corporation Code. Nothing contained in this Act shall deprive electric cooperatives of any privilege or right granted to them under Presidential Decree No. 269, as amended, and other existing laws.

Regulation Of The Electric Power Industry

Mon, 01 Jan 0001 00:00:00 +0000

Section 38. Creation of the ERC

An independent, quasi-judicial regulatory body called the Energy Regulatory Commissions (ERC) is created.

It is composed of:

1 Chairman
4 members to be appointed by the President

They shall be:

Retail Competition and Open Access

Mon, 01 Jan 0001 00:00:00 +0000

Section 31. Retail Competition and Open Access

Retail competition and open access on distribution wires shall be implemented not later than 3 years upon the effectivity of this Act, subject to the following conditions:

Role Of The Department Of Energy

Mon, 01 Jan 0001 00:00:00 +0000

Section 37. Powers and Functions of the DOE

The DOE will supervise the restructuring of the electricity industry.

This amends Section 5 of RA 7638 “The Department of Energy Act of 1992”:

TRANSCO

Mon, 01 Jan 0001 00:00:00 +0000

Section 5. Organization

The electric power industry shall be divided into 4 sectors:

generation
transmission
distribution
supply

Section 6. Generation

The generation of electric power shall be competitive and open.