Law Summary

Introduction

Presidential Decree No. 1767, issued on January 11, 1981, empowers the President of the Philippines to determine the terms and conditions of power contracts between the government and aluminum smelter projects. This decree is part of the government's effort to promote the establishment of aluminum smelters as a priority industrial project.

Empowerment of the President

• Principle: The President is granted the authority to set power rates and conditions specific to aluminum smelters.
• Key Definitions:
  • Aluminum Smelters: Industrial facilities that require significant energy inputs for aluminum production.
• Requirements:
  • The President acts upon the recommendation of the Minister of Energy and the Minister of Industry.
• Consequences:
  • This decree supersedes existing laws that may conflict with the President's authority in this regard.

Authority of the National Power Corporation

• Principle: The President can authorize the National Power Corporation (NPC) to set rates and terms for power contracts with aluminum smelters.
• Key Definitions:
  • National Power Corporation: A government-owned corporation responsible for power generation and distribution.
• Requirements:
  • The NPC can establish rates and conditions as determined by the President.
  • The President may also permit the National Development Company to form a separate entity to meet the power needs of aluminum smelters.
• Consequences:
  • Establishment of a joint venture or separate corporation requires adherence to the terms set by the President.

Modification of Existing Laws

• Principle: The decree modifies or repeals any inconsistent laws, decrees, orders, or regulations.
• Key Definitions:
  • Inconsistent Laws: Any laws that conflict with the provisions of this decree.
• Requirements:
  • All prior regulations inconsistent with this decree are automatically amended or nullified.

Implementation

• Principle: The decree is effective immediately upon signing.
• Timeframes:
  • The decree takes effect as of January 11, 1981, the date of issuance.

Key Takeaways

• Presidential Decree No. 1767 empowers the President to set specific power rates and conditions for aluminum smelters, recognizing their unique energy needs.
• The National Power Corporation is authorized to implement these rates under the President's direction.
• Any conflicting laws are modified or repealed to align with this decree, which is effective immediately upon its signing.

This summary encapsulates the essential provisions and implications of Presidential Decree No. 1767, reflecting its significance in the context of the Philippine energy sector and industrial policy.