Article 91p. 91

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

Philippine Energy Plan. The PDP shall consider and

integrate the individual or joint development plans of

the transmission, generation, and distribution sectors of

the

power

industry,

which

are

submitted

to

the

Department: 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:

(i) Encourage private sector investments in the electricity

sector and promote development of indigenous and

renewable energy sources;

(ii) Facilitate and encourage reforms in the structure and

operations of distribution utilities for greater efficiency

and lower costs;

(iii) In consultation with other government agencies,

promote a system of incentives to encourage industry

participants, including new generating companies and

end-users

to provide adequate and reliable electric

supply; and

(iv) Undertake, in coordination with the ERC, NPC, NEA

and the Philippine Information Agency (PIA), information

campaign to educate the public on the restructuring of

the electricity sector and privatization of NPC assets;

(f) Jointly with the electric power industry participants,

establish

the

wholesale electricity spot market and

formulate the detailed rules governing the operations

thereof;

(g)

Establish

and

administer

programs

for

the

exploration,

transportation,

marketing,

distribution,

utilization,

conservation,

stockpiling,

and

storage

of

energy resources of all forms, whether conventional or

non-conventional;

(h) Exercise supervision and control over all government

activities relative to energy projects in order to attain the

goals embodied in Section 2 of RA 7638;

(i) Develop policies and procedures and, as appropriate,

promote a system of energy development incentives to

enable

and

encourage

electric

power

industry

participants

to

provide

adequate

capacity

to

meet

demand including, among others, reserve requirements;

(j) Monitor private sector activities relative to energy

projects in order to attain the goals of the restructuring,

privatization, and modernization of the power sector as

provided for under existing laws: Provided, That the

Department

shall

endeavor

to

provide

for

an

environment conducive to free and active private sector

participation and investment in all energy activities;

(k) Assess the requirements of, determine priorities for,

provide

direction

to,

and

disseminate

information

resulting

from

energy

research

and

development

programs for the optimal development of various forms

of energy production and utilization technologies; (l)

Formulate and implement programs, including a system

of providing incentives and penalties, for the judicious

and efficient use of energy in all energy-consuming

sectors of the economy;

(m)

Formulate

and

implement

a

program

for

the

accelerated development of non-conventional energy

systems and the promotion and commercialization of its

applications;

(n) Devise ways and means of giving direct benefit to the

province, city, or municipality, especially the community

and people affected, and equitable preferential benefit

to the region that hosts the energy resource and/or the

energy-generating facility: Provided, however, That the

other provinces, cities, municipalities, or regions shall not

be deprived of their energy requirements;

(o) Encourage private enterprises engaged in energy

projects,

including

corporations,

cooperatives,

and

similar collective organizations, to broaden the base of

their

ownership and thereby encourage the widest

public ownership of energy-oriented corporations;

(p) Formulate such rules and regulations as may be

necessary to implement the objectives of this Act; and

(q) Exercise such other powers as may be necessary or

incidental to attain the objectives of this Act."

CHAPTER IV Regulation of the Electric Power

Industry

Section

38.

Creation

of

the

Energy

Regulatory

Commission. - There is hereby created an independent,

quasi-judicial regulatory body to be named the Energy

Regulatory Commission (ERC). For this purpose, the

existing Energy Regulatory Board (ERB) created under

Executive

Order

No.

172,

as

amended,

is

hereby

abolished.

The Commission shall be composed of a Chairman and

four (4) members to be appointed by the President of

the Philippines. 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: energy, law,

economics, finance, commerce, or engineering, with at

least three (3) years actual and distinguished experience

in their respective fields of expertise: Provided, That out

of the four (4) members of the Commission at least one

(1) shall be a member of the Philippine Bar with at least

ten (10) years experience in the active practice of law,

and one (1) shall be a certified public accountant with at

least ten (10) years experience in active practice.

Within three (3) months from the creation of ERC, the

Chairman shall submit for approval of the President of

the Philippines the new organizational structure and

plantilla positions necessary to carry out the powers and

functions of the ERC.

The

Chairman

of

the

Commission

who shall be a

member of the Philippine Bar shall act as the Chief

Executive Officer of the Commission.

All members of the Commission shall have a term of

seven (7) years: Provided, That for the first appointees,

the Chairman shall hold office for seven (7) years, two (2)

members shall hold office for five (5) years and the other

two (2) members shall hold office for three (3) years:

Provided,

further,

That

appointment

to

any

future

vacancy shall only be for the unexpired term of the

predecessor: Provided, finally, That there shall be no

reappointment and in no case shall any member serve

for more than seven (7) years in the Commission.

The Chairman and Members of the Commission shall

assume office at the beginning of their terms: Provided,

That, if upon the effectivity of this Act, the Commission

has not been constituted and the new staffing pattern

and plantilla positions have not been approved and

filled-up, the current Board and existing personnel of

ERB shall continue to hold office.

© 2018 Compiled by RGL

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