Question & AnswerQ&A (Republic Act No. 7648)
The short title is the "Electric Power Crisis Act of 1993."
The State declares the policy to adopt adequate and effective measures to address the electric power crisis which has disrupted the country's economic and social life and assumed the nature and magnitude of a public calamity.
The President may enter into negotiated contracts for power projects when it is advantageous to the Government and in the public interest, subject to publication of projects and contract details, requirements on contractor qualifications, and compliance with government auditing rules.
Contractors must have proven competence and experience in similar projects, competent key personnel with sufficient and reliable equipment, and sound financial capacity.
The rate of return is fixed to not more than twelve percent (12%) of the rate base as defined in Section 4 of Republic Act No. 6395, as amended.
Yes, any increase in power rates requires approval by the Energy Regulatory Board (ERB) after notice and hearing, with a maximum increase in 1993 of eighteen centavos (P0.18) per kilowatt-hour on average. Some households are exempt for certain periods, and increases cannot be passed to households consuming not more than 100 kWh/month for five years.
Households consuming not more than 100 kilowatt-hours per month shall not be subject to power rate increases for five years, and households consuming less than 300 kilowatt-hours per month shall continue to receive existing subsidies.
The President may reorganize NAPOCOR to improve effectiveness, including abolishing or creating offices, merging positions, transferring functions, and instituting cost-cutting measures, provided salaries and benefits are not diminished.
PAGCOR shall set aside ten percent (10%) of its annual aggregate gross earnings for the next five years as a subsidy to NAPOCOR, based on gross revenue after deducting franchise tax and national government income share.
The authority subsists for one year from the effectivity of the Act unless sooner withdrawn by a resolution of Congress.
Oversight Committees in each House of Congress, composed of five members each, monitor the implementation of the Act and submit periodic reports, evaluations, and recommendations.
Yes, the President must submit quarterly reports to Congress on the implementation of the Act.
Other parts or provisions not affected shall continue to be in full force and effect according to the Separability Clause in Section 10.
It took effect the day following its publication in at least two national newspapers of general circulation.