Declaration of Policy
- State policy to adopt adequate and effective measures to address the electric power crisis.
- Recognizes the crisis as a disruption to economic and social life, amounting to a public calamity.
Negotiated Contracts
- The President may enter into negotiated contracts for construction, repair, rehabilitation, improvement, or maintenance of power plants, projects, and facilities.
- Requirements for contracts:
- Publication of project lists with descriptions, budget estimates, and features in a newspaper within 30 days after the Act's effectivity.
- Publication of contract terms, conditions, and contractor details 2 weeks before signing.
- Award only to contractors with proven competence, experienced personnel, reliable equipment, and sound financial capacity.
- Subject contracts to government auditing rules governing negotiated contracts.
Return on Rate Base
- President authorized to fix NAPOCOR’s rate of return on rate base up to 12% as defined under R.A. No. 6395.
- Power rate increases require Energy Regulatory Board (ERB) approval after notice and hearing.
- Limitations on power rate increases for 1993:
- Increase not to exceed P0.18 per kilowatt-hour on average.
- No increase for households consuming 100 kilowatt-hours or less for 5 years.
- Existing subsidy for households consuming less than 300 kilowatt-hours continues.
- No rate increases in provinces producing geothermal power capacity of 100 MW or more for 1 year.
- ERB may issue provisional authority to increase rates during the Act's effectivity for up to two periods of 60 days.
Reorganization of National Power Corporation (NAPOCOR)
- The President empowered to reorganize NAPOCOR for effectiveness.
- Actions include abolishing/creating offices, splitting/merging positions, transferring resources, instituting cost-cutting, and other necessary measures.
- No reduction in present salaries and benefits of personnel.
- Phased-out employees entitled to benefits as determined by NAPOCOR’s Board with Presidential approval.
- President may upgrade compensation comparable to private utilities, effective upon Congress approval of 1994 budget.
Subsidy by Philippine Amusement and Gaming Corporation (PAGCOR)
- PAGCOR to allocate 10% of its annual gross earnings for five years as subsidy to NAPOCOR.
- Allocation based on gross revenue after deducting 5% franchise tax and 50% income share of the National Government.
Duration of Presidential Powers
- Presidential authority under the Act lasts one year from effectivity unless earlier withdrawn by Congress.
- Rights, benefits, liabilities vested or incurred remain unaffected.
Oversight Committees
- Created a five-member Oversight Committee in each House of Congress.
- Committees monitor Act implementation and presidential authority exercise.
- Required to submit periodic reports, evaluations, and recommendations.
Report to Congress
- President must submit quarterly reports on the Act's implementation.
Separability Clause
- Invalidity of any provision does not affect other parts, which remain in full force.
Repealing Clause
- Laws and regulations inconsistent with the Act are repealed or modified accordingly.
Effectivity Clause
- The Act takes effect the day after publication in at least two national newspapers of general circulation.