Rules and Regulations to Implement the Power Industry Reform Act
The Rules and Regulations give provisions to implement the key structural reforms for the electric power industry.
Key objectives of the policy include:
- Promoting full electrification and ensuring reasonable electricity prices under fair competition and public accountability; and
- Encouraging renewables and environmentally compatible infrastructure;
The Department of Energy (DOE) will encourage private sector investment in the RE sector and develop the RES potential including at the small scale.
Energy pricing: Upon introducing the Retail Competition or Wholesale Electricity Spot Market, the rates of a generation company shall not be decided by the ERC except as otherwise provided by the Act. However, ERC determines rates for generation companies operating in Small Power Utilities Group/isolated areas.
Energy sector investment priorities are, among others:
- Enhancing private capital inflow, risk sharing, and broadening the ownership base of the generation, transmission and distribution sectors; and
- Ensuring non-discriminatory treatment of public and private sector entities while restructuring the power industry.
The Rules and Regulations create the Power Sector Assets and Liabilities Management Corporation (PSALM) to ensure an orderly and transparent privatisation of the National Power Corporation (NPC).
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