Law Summary
Background and Prior Resolutions
- The Commission issued the Rules for Supplier of Last Resort (SOLR) on June 21, 2006, establishing policies and procedures for backup supply to contestable customers.
- To provide consistency in rate filing by SOLR, the Commission proposed and later adopted specific rules titled "Rules on Rate Filing by the Supplier of Last Resort."
Purpose and Scope of the Rules
- The Rules on Rate Filing aim to create a uniform system for applications by SOLRs to approve their rates and charges for affected contestable markets.
- These rules ensure the recovery of allowable premiums, reasonable returns, and other costs related to SOLR services.
Public Consultation and Adoption Process
- A public consultation was conducted on November 15, 2006, to consider views and comments from stakeholders.
- After thorough deliberations, including consideration of stakeholders' inputs, the Commission officially approved and adopted the Rules on October 10, 2007.
Effectivity and Publication
- The Rules shall take effect fifteen days following their publication in a newspaper of general circulation nationwide.
Key Legal Concepts
- SOLR is a designated electricity supplier that provides back-up power supply to contestable customers under specific circumstances.
- Rate filings by the SOLR must be approved by the Commission to ensure fairness and reasonableness.
- The Commission’s regulatory authority under RA 9136 enables it to promulgate these rules to support industry restructuring and protect consumer interests.
Implementation
- The adopted Rules are attached as Annex "A" and form an integral part of the Resolution.
- The Resolution is signed by the Chairman and Commissioners of the Energy Regulatory Commission, reflecting formal approval and mandate.