Title
Creation of the Energy Regulatory Board
Law
Executive Order No. 172
Decision Date
May 8, 1987
Corazon C. Aquino establishes the Energy Regulatory Board to consolidate regulatory functions in the energy sector, ensuring coherent policy formulation and oversight while addressing national security and public interest.
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Staffing and Qualifications

  • Board shall appoint an adequate staff including an Executive Director licensed to practice law with at least 5 years of experience.
  • Executive Director's roles include acting as recorder, custodian of records, administering oaths, implementing Board policies, and supervising units.
  • Technical staff (non-clerical) must have relevant bachelor’s degrees.

Jurisdiction, Powers, and Functions

  • Board regulates business activities related to importing, exporting, processing, distributing, refining energy resources.
  • "Energy resources" broadly defined including petroleum, coal, gas, geothermal, hydroelectric, uranium, solar, tidal, and other non-conventional sources.
  • Powers include fixing/regulating prices of petroleum products and piped gas rates; regulating pipeline concessionaires rates; licensing and capacity regulation of refineries.
  • Board may adjust prices and manage payments to Oil Price Stabilization Fund during shortages.

Reorganization and Transfer of Powers

  • Reconstitutes Board of Energy into Energy Regulatory Board, transferring powers from Board of Energy and other abolished agencies such as Oil Industry Commission and Bureau of Energy Utilization.
  • Transfers rate-fixing powers from Land Transportation Commission to the Board regarding hauling and transporting petroleum products.
  • Includes transfer of funds, records, equipment, and personnel related to transferred functions.

Rulemaking and Enforcement

  • Board empowered to promulgate procedural rules and regulations; rules effective 15 days post-publication.
  • Authorized to enforce compliance, impose penalties, and perform necessary acts for its functions.

Procedural Rules and Contempt Powers

  • Board's inquiries and hearings governed by its own rules; not bound by technical rules of evidence.
  • Authority to summarily punish contempt with fines up to ₱5,000 or imprisonment up to 30 days.
  • Assistance of sheriffs and police for enforcement.
  • May commission court clerks, judges, or notaries public for taking depositions domestically or abroad.
  • May delegate lawyers for hearings and investigations.

Provisional Relief

  • Board may grant provisional relief without prior hearing based on verified supporting papers.
  • Hearing on provisional relief to be conducted within 30 days after issuance.

Effectivity of Board Decisions

  • Decisions or orders on existing services or rates become immediately effective.
  • Other decisions take effect as specified or after 30 days post-notice unless otherwise ordered.

Judicial Review

  • Parties may file a petition for review to the Supreme Court within specific time frames.
  • Supreme Court reviews for lack of evidence, illegality, or lack of jurisdiction.
  • Filing for special remedies does not stay Board decisions unless Supreme Court orders.

Employee Benefits and Incentives

  • Employees separated due to reorganization entitled to retirement benefits under existing laws or separation pay equivalent to one-month salary per year of service, not exceeding 12 months.

Interagency Coordination

  • Board coordinates with Department of Energy, Environment and Natural Resources, NEDA, NEA, and other relevant bodies for policy and program alignment.

Penalties

  • Applies penalty provisions from previous laws regarding violation or noncompliance with Board's orders and regulations.

Continuity of Existing Laws

  • Existing provisions of related laws remain in effect unless inconsistent with this Executive Order.

Administrative Supervision

  • Board is under administrative supervision of the Office of the President.

Separability and Repealing Clauses

  • Invalidity of any provision does not affect the rest of the order.
  • Repeals inconsistent provisions of earlier Executive Orders and applicable laws.

Effectivity

  • Order takes effect immediately upon issuance.

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