Section 6Sec./Art. 6

Microgrid System Providers. The ownership and operation of a microgrid system in unserved and underserved areas pursuant to this Act shall not be considered a public utility operation. For this purpose, any MGSP shall bot be required to secure a franchise from Congress, but shall secure an ATO from the ERC prior to its operation. All qualified third parties (QTPs) providing alternative electric service pursuant to Section 59 of Republic Act No. 9136 are hereby renamed and shall hereafter to be known as MGSPs.

Any party, including private corporation, local government units, cooperatives, nongovernment organizations, generation companies and their subsidiaries, and DUs and their subsidiaries who have demonstrated the capability and willingness to comply with the relevant technical financial, and other requirements, may be an MGSP: Provided, That these entities shall not subsidize their respective MGSPs and shall maintain a separate account for such business undertaking pursuant to ERCs applicable rules and guidelines on business separation and unbundling, whenever applicable.