Article 83p. 83

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

Section 3. Scope. - This Act shall provide a framework for

the

restructuring

of

the

electric

power

industry,

including the privatization of the assets of NPC, the

transition to the desired competitive structure, and the

definition

of

the

responsibilities

of

the

various

government agencies and private entities.

Section 4. Definition of Terms. -

(a) "Aggregator" refers to a person or entity, engaged in

consolidating electric power demand of end-users in the

contestable market, for the purpose of purchasing and

reselling electricity on a group basis;

(b) "Ancillary Services" refer to those services that are

necessary to support the transmission of capacity and

energy

from

resources

to

loads

while

maintaining

reliable

operation

of

the

transmission

system

in

accordance with good utility practice and the Grid Code

to be adopted in accordance with this Act;

(c) "Captive market" refers to electricity end-users who

do not have the choice of a supplier of electricity, as may

be determined by the Energy Regulatory Commission

(ERC) in accordance with this Act;

(d) "Central Dispatch" refers to the process of scheduling

and issuing direct instructions by the grid operator to

achieve the economic operation and maintenance of

quality,

stability,

reliability

and

security

of

the

transmission system;

(e) "Co-generation Facility" refers to a facility which

produces electrical and/or mechanical energy and forms

of useful thermal energy such as heat or steam which

are used for industrial commercial heating or cooling

purposes through the sequential use of energy

(f) "Commission" refers to the decision-making body of

the ERC composed of a Chairman and four (4) members

as provided under Section 38 hereof;

(g) "Concession Contract" refers to the award by the

government

to

a

qualified

private

entity

of

the

responsibility

for

financing,

operating,

expanding,

maintaining and managing specific Government-owned

assets;

(h)

"Contestable

Market"

refers

to

the

electricity

end-users who have a choice of a supplier of electricity,

as may be determined by the ERC in accordance with

this Act;

(i)

"Department

of

Energy"

or

"DOE" refers to the

government agency created pursuant to Republic Act

No. 7638 whose expanded functions are provided herein;

(j) "Department of Finance" or "DOF" refers to the

government agency created pursuant to Executive Order

No. 127;

(k) "Distribution Code" refers to a compilation of rules

and

regulations

governing

electric

utilities

in

the

operation and maintenance of their distribution systems

which includes, among others, the standards for service

and

performance,

and

defines

and

establishes the

relationship of the distribution systems with the facilities

or installations of the parties connected thereto;

(l) "Distribution of Electricity" refers to the conveyance of

electric

power

by

a

distribution

utility

through

its

distribution system pursuant to the provisions of this Act;

(m) "Distribution System" refers to the system of wires

and

associated

facilities

belonging

to

a

franchised

distribution utility extending between the delivery points

on

the

transmission

or

subtransmission

system

or

generator connection and the point of connection to the

premises of the end-user;

(n) "Distribution Retail Wheeling Charge" refers to the

cost or charge regulated by the ERC for the use of a

distribution

system

and/or the availment of related

services;

(o) "Distribution Retail Supply Rate" refers to the total

price paid by end-users consisting of the charges for

generation, transmission and related ancillary services,

distribution, supply and other related charges for electric

service;

(p) "Distribution Utility" refers to any electric cooperative,

private

corporation,

government-owned

utility

or

existing local government unit which has an exclusive

franchise to operate a distribution system in accordance

with this Act;

(q) "Electric Cooperative" refers to a distribution utility

organized pursuant to Presidential Decree No. 269, as

amended, or as otherwise provided in this Act;

(r) "Electric Power Industry Participant" refers to any

person

or

entity

engaged

in

the

generation,

transmission, distribution or supply of electricity;

(s) "End-user" refers to any person or entity requiring the

supply and delivery of electricity for its own use;

(t) "Energy Regulatory Board" or "ERB" refers to the

independent,

quasi-judicial

regulatory

body

created

under Executive Order No. 172, as amended;

(u) "Energy Regulatory Commission" or "ERC" refers to

the regulatory agency created herein;

(v)

"Franchise

Area"

refers

to

a

geographical

area

exclusively assigned or granted to a distribution utility

for distribution of electricity;

(w) "Generation Company" refers to any person or entity

authorized by the ERC to operate facilities used in the

generation of electricity;

(x) "Generation of Electricity" refers to the production of

electricity by a generation company or a co-generation

facility pursuant to the provisions of this Act;

(y) "Grid" refers to the high voltage backbone system of

interconnected

transmission

lines,

substations

and

related facilities;

(z) "Grid Code" refers to the set of rules and regulations

governing the safe and reliable operation, maintenance

and

development

of

the

high

voltage

backbone

transmission system and its related facilities;

(aa) "Implementing Rules and Regulations" or "IRR"

refers

to

the

implementing

rules

and

regulations

consistent with this Act promulgated by the DOE in

consultation

with

the

electric

power

industry

participants and representatives of the business sector

and

approved

by

the

Joint

Congressional

Power

Commission to implement the provisions of this Act;

(bb) "Independent Power Producer" or "IPP" refers to an

existing power generating entity which is not owned by

the government;

(cc) "Isolated Distribution System" refers to the low or

high voltage backbone system of wires and associated

facilities

not

directly

connected

to

the

national

transmission system;

© 2018 Compiled by RGL

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