QuestionsQuestions (ERC GUIDELINES RE RepublicT ACT NO. 9136, MAY 17, 2002)
The guidelines are issued to govern the imposition of administrative sanctions in the form of fines and penalties pursuant to Section 46 of Republic Act No. 9136 (Electric Power Industry Reform Act of 2001).
They apply to all persons violating or failing to comply with RA 9136 and its IRR, the Philippine Grid and Distribution Codes, and the rules, regulations, orders, resolutions, and other laws whose issuance and/or enforcement is assigned to the ERC.
A penalty of P50,000 plus P100 per day for every day of violation, imposed on a person who fails, without justifiable reason, to submit required documents such as annual reports, monthly reports, computations for various adjustments, financial statements, sample bills, and other material documents required by the ERC.
Before imposing the penalty, the offender must be duly informed in writing of the violation, given an opportunity to present an explanation, and duly warned of the consequences of the violation.
Examples include: (1) operating as a Generation Company/Facility without a valid COC and clearances; (2) failure to provide open and non-discriminatory access to transmission/distribution; (3) non-compliance with technical specifications and performance standards; (4) non-submission of a plan to comply with grid/distribution technical specifications or failure to implement the plan within three years from code effectivity; (5) operating as an Electricity Supplier without a license/permit; and others such as failure to file for unbundling, operate transmission/distribution without CPCN, failure to implement mandated rate reduction, and failure to adopt lifeline rate.
A penalty not lower than P50,000 but not exceeding P50,000,000, at the discretion of the ERC, after due notice and hearing.
The guidelines include cross-ownership, cross-subsidization, price or market manipulation, and other unfair trade practices, considering their effect on the electric industry and its participants.
For a Distribution Utility found (after due notice and hearing) to have committed fraud or misrepresentation related to mitigating potential stranded costs under Section 33 of the Act and Rule 17 of its IRR, a penalty not lower than P50,000 but not exceeding P50,000,000 may be imposed at the ERC’s discretion.
Repeated commission of violations under those sections shall be a ground for the ERC to recommend to Congress the revocation of the franchise or privilege granted to the offender.
A fine not exceeding P50,000, at the discretion of the ERC, may be imposed for misconduct seriously interrupting hearings or willfully failing/refusing without just cause to comply with legally issued ERC subpoenas, refusing to be sworn or answer questions when lawfully required, or refusing to furnish information.
Yes. Any party may make an offer to the ERC at any time before a decision is rendered, for a consented decree, voluntary compliance/desistance, and other settlement of the case.
The ERC shall not accept a settlement offer in an amount lower than 50% of the computed penalty.
In exceptional cases and at the full discretion of the Commission, taking into account: (1) good faith of the offender; (2) gravity of the violation; (3) first-time commission; and (4) other meritorious reasons the ERC en banc considers.
No compromise settlement shall be allowed after the case has been finally decided by the ERC.
It takes effect fifteen (15) days after its publication in two (2) newspapers of general circulation in the country.