Title
Supreme Court
Amendment to National Power Corp Charter
Law
Presidential Decree No. 395
Decision Date
Feb 26, 1974
Presidential Decree No. 395 expands the powers of the National Power Corporation in constructing power infrastructure, harnessing hydraulic power, utilizing various energy sources, managing power distribution, and selling electricity in bulk to different entities in the Philippines.

Law Summary

Authorization for Use of Various Power Generation Technologies

  • Allows acquisition, construction, installation, maintenance, operation, and improvement of gas, oil, or steam engines, as well as other prime movers and generators.
  • Applies to production of electric power within power plants or auxiliary plants.

Development and Management of Power and Lighting Systems

  • Empowers the Corporation to establish, develop, operate, maintain, and administer systems for power transmission and utilization.
  • Covers full spectrum of power distribution infrastructure and service administration.

Conditions for Bulk Sale of Electric Power

  • Permits sale of electric power in bulk to:
    1. Industrial enterprises,
    2. City, municipal, or provincial systems and other government institutions,
    3. Electric cooperatives,
    4. Franchise holders,
    5. Real estate subdivisions.
  • Mandates minimum power requirement of 100 kilowatts for sales to industrial enterprises and real estate subdivisions.

Exceptions and Special Provisions

  • No restrictions on sale of power in bulk to enterprises registered with the Board of Investments.
  • Existing contracts with industrial enterprises shall be maintained and honored.
  • Provisions for collection of charges for services rendered are affirmed.

Legal Authority and Context

  • The amendment is made pursuant to the powers vested in the President by the Constitution, including his role as Commander-in-Chief and specific proclamations and orders.
  • Reflects a continuing effort to revise and enhance the National Power Corporation's charter and capabilities under existing legislative framework.

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