Rules on TOU Retail Rates for DUs Sourcing from NPC/IPPs

References the ERC Decision on April 13, 2005, approving Time-of-Use (TOU) retail rates for Luzon, Visayas, and Mindanao grids.
Directs all Distribution Utilities sourcing 100% of power from NPC or IPPs to file applications for TOU retail rates.
Notes various DUs have filed their respective applications for TOU approval.

The ERC formulated a draft entitled "Rules to Govern the Application and Approval of the Time of Use (TOU) Retail Rates of Distribution Utilities sourcing 100% of their Power Requirements from NPC."
Draft rules were subjected to public consultations on October 16 and November 6, 2007.
The ERC thoroughly evaluated public comments and submissions from stakeholders.

The ERC formally adopts the "Rules to Govern the Implementation of the Time-of-Use (TOU) Retail Rates of Distribution Utilities sourcing 100% of their Power Requirements from NPC and/or IPPs with Authorized Rates Pegged at NPC’s Rate."
The rules apply specifically to DUs sourcing their entire power requirements from NPC and/or IPPs.
The authorized rates for such DUs are pegged at NPC’s rate.
This resolution took effect immediately upon publication in a newspaper of general circulation.

Copies of the resolution were furnished to the University of the Philippines Law Center-Office of the National Administrative Register (UPLC-ONAR).
All Distribution Utilities were also notified to ensure compliance and dissemination of the rules.

Emphasizes ERC’s regulatory authority under EPIRA in rate setting.
The TOU retail rates are designed to reflect variations in electricity demand and supply costs depending on the time of use.
Establishes clear regulatory guidelines to harmonize rates across DUs sourcing from NPC/IPPs, ensuring uniformity and fairness.
Provides a procedural framework through which DUs apply for approval of TOU retail rates, subject to public transparency and stakeholder participation.

Although not explicitly detailed in this resolution, enforcement and compliance oversight rest with the ERC as the regulatory agency responsible under EPIRA.
Non-compliance with filing and implementation of approved TOU retail rates may attract penalties pursuant to ERC rules and EPIRA provisions.