Title
ERC sets deadline, fines for self-generation COC
Law
Erc No. 10-02, Series Of 2004
Decision Date
Oct 25, 2004
ERC Resolution No. 10-02 mandates all entities with self-generation facilities to submit a Certificate of Compliance application by March 31, 2005, or face fines of up to P100,000 plus daily penalties for non-compliance, while exempting certain medical facilities from this requirement.

Questions (ERC Resolution NO. 10-02, SERIES OF 2004)

The requirement is found in Section 6 of Republic Act No. 9136 (EPIRA), which provides that Generation Companies shall secure from the ERC the Certificates of Compliance (COC) before they operate.

Rule 5, Section 4(a) of the EPIRA Implementing Rules and Regulations states that no person may engage in the generation of electricity unless the person has received a COC from the ERC to operate facilities used in the generation of electricity.

It is defined as the production of electricity by a Generation Company or a Co-generation Facility pursuant to the provisions of the EPIRA.

It reiterates that all such facilities—including those used for backup or otherwise—are required to be issued a COC prior to operation.

Facilities for use by households, clinics, hospitals, and other medical facilities are exempt from the COC requirement.

The Resolution requires filing on or before 31 March 2005.

A fine of ONE HUNDRED THOUSAND PESOS (P100,000.00), plus ONE HUNDRED PESOS (P100.00) for every day of non-compliance.

The Resolution cites Section 46 of EPIRA and Sections 5 and 6, Article III of the Guidelines to Govern the Imposition of Administrative Sanction in the Form of Fines and Penalties Pursuant to Section 46 of EPIRA.

It states that a reasonable time had already been given to all entities owning generation facilities (existing and newly constructed) to apply for a COC before they operate, but only a few entities voluntarily applied.

Yes in rationale: it mentions facilities that are existing and newly constructed, emphasizing that both categories were given reasonable time to apply. The operative rule also covers facilities used for self-generation (unless exempt).

It means the COC must be issued before the facility is operated for generation; operation without first obtaining the required COC triggers administrative sanctions.

It directed the Executive Director to cause the publication of the Resolution in two (2) newspapers of general circulation in the Philippines.

The Resolution is signed by the ERC Chairman and Commissioners: Chairman Rodolfo B. Albano, Jr. and Commissioners Oliver B. Butalid, Jesus N. Alcordo, Rauf A. Tan, and Alejandro Z. Barin.

A fixed fine of P100,000.00 plus a daily fine of P100.00 for every day of non-compliance.


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