Question & AnswerQ&A (Republic Act No. 11646)
The title of Republic Act No. 11646 is the 'Microgrid Systems Act.'
The primary policy of the State is to pursue sustainable rural development and poverty reduction through energy access for all, accelerate total electrification, promote private sector participation, provide a competitive environment for energy sources prioritizing low-cost and renewable sources, and adopt a dynamic regulatory environment.
The Act applies to the development of microgrid systems in unserved and underserved areas nationwide.
An MGSP is a natural or juridical person whose business includes the installation, operation, and maintenance of microgrid systems in unserved or underserved areas nationwide.
No, ownership and operation of microgrid systems by MGSPs are not considered public utility operations, and they do not need to secure a franchise from Congress but must obtain an Authority to Operate (ATO) from the ERC.
ATO is a document issued by the Energy Regulatory Commission (ERC) to the MGSP, which serves as the license to provide integrated power generation and distribution services to unserved and underserved areas.
The CSP is a transparent and competitive procedure such as an auction or Swiss challenge to award contracts for providing integrated power generation and distribution services in declared unserved or underserved areas.
Responsible officers may face imprisonment of six to eight years or a fine ranging from P75,000,000 to P100,000,000, at the court's discretion.
The Energy Regulatory Commission (ERC) monitors compliance of all MGSPs with their obligations under their respective ATOs.
UCME is a non-bypassable charge collected from all end-users on a monthly basis, a portion of which is allocated for providing integrated power generation and distribution services in unserved and underserved areas.