Law Summary
Application for Guidelines Submission
- On December 6, 2004, the National Power Corporation-Small Power Utilities Group (NPC-SPUG) submitted its application (ERC Case No. 2004-450).
- The application requested adoption of Guidelines to set electric generation rates and subsidies specifically for missionary electrification areas.
- Submission was pursuant to Sections 34, 43(t), and 70 of EPIRA.
Public Consultations and Stakeholder Engagement
- ERC issued an Order on April 21, 2005, scheduling public consultations on May 19, 26, and June 2, 2005 for Luzon, Visayas, and Mindanao.
- An additional consultation was conducted on June 21, 2005, in Zamboanga City upon request.
- Multiple comments and stakeholder feedback were received and considered during the deliberations.
Deliberation and Consideration of Feedback
- ERC incorporated views and comments from interested parties into its analysis.
- The finalized Guidelines reflect adjustments based on this feedback as well as ERC’s independent study.
Adoption and Effectivity of the Guidelines
- ERC resolved to approve and adopt the Guidelines for setting and approving electricity generation rates and subsidies in missionary electrification areas.
- The resolution took effect ten (10) days after its publication in a newspaper with general circulation nationwide.
Scope and Purpose of the Guidelines
- Specifically intended for missionary electrification areas, which are regions where electrification is subsidized due to economic and accessibility challenges.
- Provides a structured methodology for determining electricity generation rates in these areas.
- Establishes transparent rules for approving subsidies that support electrification efforts.
Legal and Institutional Framework
- Anchored on key provisions of EPIRA ensuring alignment with national policy on power industry reform.
- Reinforces the role of NPC-SPUG as the agency responsible for providing power to missionary areas and coordinating with the ERC on rate settings.
Transparency and Regulatory Oversight
- The ERC’s process emphasizes transparency through public consultations.
- Ensures that the rates and subsidies are justifiable, fair, and supportive of the overall modernization and restructuring objectives of the power sector.
Administrative Details
- Resolution was officially adopted on July 6, 2005.
- Signed by the Chairman and Commissioners of the ERC at that time.
- Guidelines text available at the National Administrative Register in the U.P. Law Complex, Diliman, Quezon City, for public reference.