Title
ERC Guidelines on Administrative Sanctions under RA 9136
Law
Erc Guidelines Re Republict Act No. 9136, May 17, 2002
Decision Date
May 17, 2002
The Guidelines to Govern the Imposition of Administrative Sanctions in the Form of Fines and Penalties outlines the duties and responsibilities of the Energy Regulatory Commission (ERC) in enforcing the Implementing Rules and Regulations of Republic Act No. 9136, including the power to impose fines and penalties for non-compliance with the Act and its regulations.

Law Summary

Scope and Definition of Terms

  • Guidelines apply to all persons violating or failing to comply with RA 9136, its IRR, the Philippine Grid and Distribution Codes, and ERC-issued rules, orders, or laws.
  • Definitions include:
    • "Act" refers to RA 9136 effective June 26, 2001.
    • "Distribution Code" governs the operation and maintenance standards of electric distribution systems.
    • "Distribution Utility" means electric cooperatives, private corporations, or government entities with an exclusive franchise to operate distribution systems.
    • "Grid Code" relates to rules for the safe operation of high voltage transmission systems.
    • "ERC" means the Energy Regulatory Commission created under Section 38 of the Act.
    • "IRR" means the implementing rules and regulations promulgated by the DOE and approved by Congress.
    • "Person" includes both natural and juridical persons.

Administrative Sanctions

  • Non-submission of documents incurs a fine of ₱50,000 plus ₱100 per day of continued violation.
  • Violations of the Act, IRR, Grid and Distribution Codes, ERC orders, or related laws result in ₱100,000 plus ₱100 per day fines; violations include:
    • Operating without valid licenses or certificates.
    • Failure to provide non-discriminatory system access.
    • Non-compliance with technical standards.
    • Failure to submit and implement compliance plans.
    • Failure to file required rate applications or contracts.
    • Failure to implement mandated rate reductions or lifeline rates.
  • Penalties imposed only after written notice, opportunity to explain, and warning.

Penalties for Anti-Competitive Acts

  • Penalty range: ₱50,000 to ₱50,000,000 at ERC discretion for activities such as cross-ownership, price manipulation, or unfair trade practices.
  • Sanctions are without prejudice to other remedies like price controls, injunctions, divestment, disgorgement, and criminal actions.

Penalties for Fraud or Misrepresentation

  • Distribution utilities found guilty after due hearing face penalties from ₱50,000 to ₱50,000,000 for fraudulent failure to mitigate stranded costs.
  • Penalties are without prejudice to divestment and criminal proceedings.

Revocation of Franchise or Privilege

  • Repeated violations as defined may lead ERC to recommend franchise or privilege revocation to Congress.

Contempt

  • A fine not exceeding ₱50,000 may be imposed for misconduct that disrupts ERC proceedings, failure to comply with subpoenas, refusal to be sworn, or refusal to answer required questions during hearings.

Compromise Settlement

  • Parties may offer settlement anytime before decision issuance.
  • Settlement offers considered only for resolving the case and cannot be used as evidence or admit guilt.
  • ERC will not accept settlements below 50% of computed penalty except under specific mitigating circumstances such as first-time offense or good faith.
  • No settlement allowed after final decision.

Effectivity

  • Guidelines shall take effect 15 days after publication in two newspapers of general circulation in the Philippines.

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