ERC sets deadline, fines for self-generation COC

Section 6 of Republic Act No. 9136 (EPIRA) requires Generation Companies to secure Certificates of Compliance (COC) from the ERC before they operate, pursuant to standards under the EPIRA.
The EPIRA Implementing Rules and Regulations (IRR) provide that no person may engage in the Generation of Electricity unless the person has received a COC from the ERC to operate facilities used in generation.
The Resolution ties its sanctions to Section 46 of EPIRA and to administrative sanction guidelines issued for fines and penalties pursuant to Section 46 of EPIRA.
The Resolution is adopted pursuant to the ERC’s mandate to protect the public interest and to enforce EPIRA and its IRR.

The ERC reiterates that entities with generation facilities have already been given a reasonable time to apply for a COC before operation.
The ERC declares that, despite that reasonable time, only few entities have voluntarily applied for a COC with the ERC.
The ERC reiterates that compliance requirements apply to both existing and newly constructed generation facilities owned by end-users for self-generation.

Generation of Electricity means the production of electricity by a Generation Company or a Co-generation Facility under the provisions of Republic Act No. 9136.
A Certificate of Compliance (COC) is the ERC authorization required before operating facilities used for electricity generation under the EPIRA framework.
A Self-Generation Facility (SGF) refers to the self-generation facility or facilities covered by the Resolution’s filing deadline and penalties.

All facilities owned and constructed by an end-user for the end-user’s own consumption or internal use—whether for back-up or otherwise—require a COC prior to operation.
Facilities used by households, clinics, hospitals and other medical facilities are exempted from the COC requirement.
An entity with one or more self-generation facilities (SGF) is required to file a COC application with the ERC on or before 31 March 2005, unless exempt.
The COC requirement enforced by the Resolution applies as an operational precondition for covered self-generation facilities.

An entity with SGF, not otherwise exempt, must file the application for COC with the ERC on or before 31 March 2005.
The filing obligation applies to entities owning self-generation facilities, including facilities under the Resolution’s coverage of existing and newly constructed generation facilities used for self-consumption or internal use.

An entity with SGF that fails to comply with the COC requirement is fined ONE HUNDRED THOUSAND PESOS (P100,000.00).
The daily penalty for continued non-compliance is ONE HUNDRED PESOS (P100.00) for every day of non-compliance.
The penalties are imposed pursuant to Section 46 of the EPIRA and pursuant to Sections 5 and 6, Article III of the Guidelines to Govern the Imposition of Administrative Sanction in the Form of Fines and Penalties Pursuant to Section 46 of EPIRA.
The penalty regime is tied to the failure to secure a COC prior to operation for covered self-generation facilities.

The Resolution was adopted on 25 Oct. 2004.
RODOLFO B. ALBANO, JR. signed as Chairman.
OLIVER B. BUTALID, JESUS N. ALCORDO, RAUF A. TAN, and ALEJANDRO Z. BARIN signed as Commissioners.