Year:2002 (Mar 13th)
Policy status:In Force
Date Effective:2002 (Mar 13th)
Policy Type:Policy Support, Policy Support>Institutional creation, Policy Support>Strategic planning, Regulatory Instruments
Policy Target:Multiple RE Sources, Multiple RE Sources>Power
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:Department of Energy (DOE), in consultation with agencies including the Energy Regulatory Commission (ERC), Department of Finance (DOF), National Electrification Administration (NEA) and the National Power Corporation (NPC).
Legal References:Rules and Regulations to Implement Republic Act No. 9136, entitled Act Ordaining Reforms in the Philippine Electric Power Industry, otherwise known as the “Electric Power Industry Reform Act of 2001” (Act).
Funding:Funding for Off-grid electrification comes from sale revenues in off-grid areas and from its share in the Universal Charge. Small Power Utilities Group (SPUG) may draw on contributions from Congress, private capital, multilateral aids or grants, Official Development Assistance (ODA) Funds and others.

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).

Related policies:Act Ordaining Reforms In The Electric Power Industry, Amending For The Purpose Certain Laws And For Other Purposes , Renewable Energy Act , Feed-in Tariff Rules
Related Documents:

In order to view a full version of the Act please click here.

Last modified: Thu, 16 Feb 2017 11:50:34 CET