2 Brief Introduction of Each Branch of the EPIS

2.1 Energy Regulatory Commission (ERC)

The Energy Regulatory Commission regulates and balances the interests of the stakeholders in the electric power industry. The Commission aims to ensure the supply of quality electricity that is reliable, adequate and reasonably priced in order to protect the consumer and uplift the quality of life of the Filipino people.

Its objectives are:

• To promulgate/approve rules, regulations, guidelines and policies
• To resolve cases (rates and other cases) and disputes
• To promote consumer interest
• To become a dynamic organization of professional people with the highest degree of technical competence and integrity

Powers and Functions of the ERC

1. Pursuant to Section 43 of the Electric Power Industry Reform Act of 2001 (EPIRA) otherwise known as RA 9136, the ERC shall promote competition, encourage market development, ensure customer choice and penalize abuse of market power in the electricity industry. To carry out this undertaking, it shall, pursuant to Sections 43 and 45, promulgate necessary rules and regulations authorized thereby, including Competition Rules, and impose fines or penalties for any non-compliance with or breach of the Act, these Rules and the rules and regulations which it promulgates or administers as well as other laws it is tasked to implement/enforce.

2. The ERC shall, after public hearings, determine, fix and approve Transmission and Distribution Wheeling Charges, and Retail Rates through an ERC established and enforced methodology setting the same, to promote efficiency and non-discrimination. It shall fix and regulate the rates and charges to be imposed by Distribution Utilities on their Captive End-Users including self-generating entities.

3. The ERC shall grant, revoke, review and modify the certificates of compliance to generation companies and the licenses to suppliers of electricity in the contestable market pursuant to Sections 6, 29, and 43 (e).

4.Pursuant to Section 43 (b), in order to facilitate the provision of an efficient, reliable and quality electric service, the ERC shall enforce a national Grid Code and a Distribution Code that shall include performance standards and the minimum financial capability standards and other terms and conditions for access to and use of the transmission and distribution facilities.

5. There shall be authorized eligible Generation Companies, Distribution Utilities, Suppliers, End-Users and other similar entities to become members of the WESM. Pursuant to Section 43 (c), the ERC shall enforce the rules and regulations governing the operations of WESM and the activities of the WESM operator and other WESM participants, for the purpose of ensuring a greater supply and rational pricing of electricity.

6. ERC shall ensure that the Industry Participants and NPC functionally and structurally unbundle their respective business activities and rates and determine the levels of cross subsidies in the existing retail rates until the same is removed in accordance with the sectors as identified in and as required by Sections 5, 36 and 74 of the Act.

7. ERC shall set a Lifeline Rate for the Marginalized End-Users.

8. The ERC shall promulgate rules and regulations prescribing the qualifications of Suppliers which shall include among others their technical and financial capability and credit worthiness.

9. The ERC shall determine the electricity End-users comprising the Contestable and Captive Markets.

10. It shall also be empowered to issue such other rules that are essential in the discharge of its functions as an independent quasi-judicial and quasi-legislative body.