Question & AnswerQ&A (Republic Act No. 6395)
The primary objectives are the comprehensive development, utilization, and conservation of Philippine water resources for all beneficial uses including power generation, and the total electrification of the Philippines through power development from all sources to meet industrial development and rural electrification needs.
The National Power Corporation shall continue to exist for fifty years from and after the expiration of its present corporate existence.
The Corporation can conduct investigations and surveys on water power development, take water from public water bodies for its purposes, divert water flow with payment of just compensation, and exercise jurisdiction and control over watersheds surrounding its reservoirs.
Sales to such entities require a minimum power requirement of 100 kilowatts, and are allowed when the franchise holder cannot adequately supply power or consents to the sale. The Corporation can also continue to sell power under existing contracts.
The rate of return shall not be more than ten percent (10%) on a rate base composed of the sum of its net assets in operation as revalued plus two months' operating capital, excluding interest on loans, bonds, and other debts as expenses.
The Board consists of seven members: a chairman, vice-chairman, and five directors. The President appoints all except the vice-chairman (General Manager who is ex-officio vice-chairman). Members must be professionals with at least ten years experience in engineering, management, finance, law, or a recognized labor leader with training in labor-management relations.
The General Manager executes and administers policies, supervises operations, appoints subordinate personnel, prepares annual reports, and exercises powers vested by the Board.
The Corporation may contract indebtedness and issue bonds with Board approval and Presidential consent. Bonds have specified conditions including registration, minimum par value, maturity not less than ten years, and are tax-exempt. The Republic of the Philippines guarantees these bonds.
Such acts are felony punishable by a fine ranging from one to five thousand pesos, imprisonment of one to five years, or both. Injured parties also have the right to recover damages and costs in civil action.
Yes, the Corporation is exempt from all taxes, duties, fees, imposts on income, franchises, realty, import duties on goods for its operations, and all taxes on petroleum products used in power generation and transmission.