Modifies rules for private DU wheeling rates

The resolution takes effect immediately following its publication in a newspaper of general circulation in the Philippines.
Copies of the resolution are furnished to the University of the Philippines Law Center–Office of the National Administrative Register (UPLC-ONAR).
Copies are also furnished to all DUs, the National Transmission Corporation (TRANSCO), and the National Power Corporation (NPC).

Section 43(f) of Republic Act No. 9136 (EPIRA) authorizes the ERC to adopt alternative forms of internationally accepted rate-setting methodology.
Rule 5(a), Rule 15 of the EPIRA Implementing Rules and Regulations (IRR) authorizes similar alternative rate-setting approaches through the ERC.
Section 1.9 of the RDWR authorizes the ERC to amend from time to time the Rules for Setting the Distribution Wheeling Rates (RDWR).
The resolution expressly links its updates to prior ERC RDWR issuances and their entry-point rules, including the first entry, second and later entry, and the new third entry group.

The ERC adopted a performance-based rate setting methodology for privately owned distribution utilities’ distribution wheeling rates embodied in the Distribution Wheeling Rates Guidelines (DWRG) on December 10, 2005.
The ERC adopted a policy making entry into PBR by private utilities under the DWRG mandatory through Resolution No. 16, Series of 2006 on April 11, 2006.
The ERC adopted RDWR rules for the First Entry Point through Resolution No. 39, series of 2006 on July 26, 2006.
The ERC adopted RDWR rules for the Second and Later Entry Points through Resolution No. 54, Series of 2006 on December 13, 2006.

The resolution approves and adopts the Proposed Updated Rules for Setting Distribution Wheeling Rates (RDWR).
The updated RDWR applies to the Third Entry Group entering Performance Based Regulation (PBR).
The updated RDWR is for the Second Regulatory Period.
The updated RDWR is attached as an integral part of the resolution as an Annex.

The ERC posted proposed modifications on its official website at erc.gov.ph on September 26, 2008.
The ERC issued a Notice of Public Consultation setting public consultation on October 28, 2008.
The notice directed interested parties to submit written comments/inputs not later than October 23, 2008.
Privately owned DUs submitted written comments/inputs on various dates.
During the public consultation, stakeholders including privately owned DUs, commercial, industrial, and residential consumers were given opportunity to manifest their positions on the proposed modifications.

The ERC RESOLVES to APPROVE and ADOPT the updated RDWR for the Third Entry Group entering PBR.
The updated RDWR is attached and made an integral part of the resolution as Annex.
The resolution is issued under the authority to amend RDWR rules and to adopt alternative rate-setting methodologies under EPIRA and its IRR.
The resolution expressly operationalizes the third-entry RDWR update through the adopted Annex.