Question & AnswerQ&A (ERC Resolution NO. 01, SERIES OF 2008)
Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA), specifically Section 43(f), mandates the ERC to determine, fix, and approve retail rates for Distribution Utilities (DUs).
It adopts the 'Rules to Govern the Implementation of the Time-of-Use (TOU) Retail Rates of Distribution Utilities (DUs) Sourcing 100% of their Power Requirements from the National Power Corporation (NPC) and/or Independent Power Producers (IPPs) with Authorized Rates Pegged at NPC's Rate.'
The Distribution Utilities covered are those sourcing 100% of their power requirements from the National Power Corporation (NPC) and/or Independent Power Producers (IPPs).
The retail rates being regulated and implemented are Time-of-Use (TOU) retail rates.
The ERC Decision in Case No. 2004-178 dated April 13, 2005, approved the TOU retail rates of NPC and PSALM and directed all DUs to file their proposed TOU retail rates applications.
The ERC subjected the draft rules to public consultations on October 16, 2007 and November 6, 2007, and evaluated the comments and views submitted by participants before adopting the rules.
The resolution took effect immediately following its publication in a newspaper of general circulation in the Philippines.
Copies were furnished to the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR) and all Distribution Utilities (DUs).
The authorized retail rates are pegged at the National Power Corporation's (NPC) rate.
The legal basis is Section 43(f) of Republic Act No. 9136 (EPIRA) and its Implementing Rules and Regulations, which empower the ERC to determine, fix, and approve retail rates through established methodologies.