Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 395)
The main purpose of Presidential Decree No. 395 is to further amend Republic Act No. 6395, particularly Section 1(g), to expand and clarify the powers and functions of the National Power Corporation in relation to power generation and distribution in the Philippines.
Key powers include constructing, operating, and maintaining power plants, auxiliary plants, dams, reservoirs, transmission lines, and other works for hydraulic power development; acquiring and operating gas, oil, or steam engines and other machinery; establishing and operating power and lighting systems; and selling electric power in bulk to specified entities.
The decree mentions rivers, creeks, lakes, springs, and waterfalls within the Philippines as sources for developing hydraulic power.
The Corporation can sell electric power in bulk to (1) industrial enterprises, (2) city, municipal, or provincial systems and other government institutions, (3) electric cooperatives, (4) franchise holders, and (5) real estate subdivisions.
The minimum power requirement is not less than 100 kilowatts for such sales to be undertaken by the Corporation.
Yes, there is no restriction on the sale of power in bulk to enterprises registered with the Board of Investments regardless of the minimum power requirement.
Yes, the Corporation must continue to sell electricity to industrial enterprises under existing contracts and provide for the collection of charges for any service rendered.
The Corporation is authorized to acquire, construct, install, maintain, operate, and improve gas, oil, or steam engines and/or other prime movers, generators, and machinery used in plants and auxiliary plants for electric power production.
The decree was signed and came into effect on February 26, 1974.