Question & AnswerQ&A (ERC Resolution NO. 25, SERIES OF 2007)
The legal basis is Sections 2 and 43 of Republic Act 9136, also known as the Electric Power Industry Reform Act of 2001 (EPIRA).
The primary purpose is to establish policies, rules, and procedures for the SOLR to file rates/charges for approval to the affected contestable market, ensuring recovery of allowable premiums, reasonable returns, and other costs associated with SOLR service.
The resolution was approved on October 10, 2007.
The Philippine Energy Regulatory Commission (ERC) is mandated to perform these functions.
SOLR stands for Supplier of Last Resort.
The services of the SOLR are required in case of an event that affects supply to contestable customers requiring back-up supply.
The ERC conducted a public consultation on November 15, 2006, carefully considered views and comments from interested parties, and then adopted the rules after thorough deliberation.
The resolution takes effect fifteen (15) days following its publication in a newspaper of general circulation in the Philippines.
The rules aim to recover the allowable premium, reasonable returns, and other costs associated with the SOLR service.
These rules apply to applications filed by the SOLR for approval of rates or charges to contestable market customers requiring supply under SOLR service.