1. All our strategies are aligned with our Vision which is to become Asia’s benchmark of excellence in power regulation, and our Mission to promote and protect the long-term consumer interests in terms of quality, reliability, and reasonable pricing of sustainable supply of electricity. Thank you.

2. BASIC PUBLIC INFORMATION CONCEPTS ABOUT
THE ELECTRIC POWER INDUSTRY REFORM ACT (EPIRA) & THE
ENERGY REGULATORY COMMISSION
(ERC)
ATTY. FRANCISCO VILLA, JR.
ERC, Director for Planning & Information
Cebu City 10 July

3. Ensuring progress through exemplary power regulation.
Vision and Mission
VISION:
Ensuring progress through exemplary power regulation.
MISSION:
A technically competent and professional ERC committed, through the exercise of its regulatory authority, to be the driving force in the transformation of the electric power industry in ensuring reasonable electricity rates, enhancing market competition, promoting long-term consumer interest,
and assuring that electricity industry participants provide and maintain safe, adequate, reliable, and efficient electric service.
Our vision is “Ensuring progress through exemplary power regulation.”
Our mission is “A technically competent and professional ERC committed, through the exercise of its regulatory authority, to be the driving force in the transformation of the electric power industry in ensuring reasonable electricity rates, enhancing market competition, promoting long-term consumer interest, and assuring that electricity industry participants provide and maintain safe, adequate, reliable, and efficient electric service.”
2014 Budget

4. Electric Power Industry Reform Act (EPIRA)
Republic Act No. 9136
Republic Act No. 9136
Electric Power Industry Reform Act
(EPIRA)
Signed: 8 June 2001
Effectivity: 26 June 2001
Implementing Rules & Regulations
Signed: 27 February 2002
Cebu City 10 July

5. End goal of the EPIRA: Competitive Electricity Prices
The goal of the EPIRA is a vibrant power industry with healthy competition creating competitive prices of electricity for the benefit of the consumer.
Cebu City 10 July

6. SECTION 2. Declaration of Policy
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the State:
The 11 Declarations:
To ensure and accelerate the total electrification of the country;
To ensure the quality, reliability, security and affordability of the supply of electric power;
To ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market;
Cebu City 10 July

7. SECTION 2. Declaration of Policy.
The 11 Declarations:
To enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors;
5. To ensure fair and non-discriminatory treatment of public and private sector entities in the process of restructuring the electric power industry;
To protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power;
Cebu City 10 July

8. SECTION 2. Declaration of Policy.
The 11 Declarations:
To assure socially and environmentally compatible energy sources and infrastructure;
To promote the utilization of indigenous and new and renewable energy resources in power generation in order to reduce dependence on imported energy;
To provide for an orderly and transparent privatization of the assets and liabilities of the National Power Corporation (NPC);
Cebu City 10 July

9. SECTION 2. Declaration of Policy.
The 11 Declarations:
To establish a strong and purely independent regulatory body and system to ensure consumer protection and enhance the competitive operation of the electricity market; and
To encourage the efficient use of energy and other modalities of demand side management.
Cebu City 10 July

10. SOURCES PERCENTAGES NATION-WIDE
ENERGY MIX – per DOE 2013
SOURCES
PERCENTAGES
NATION-WIDE
Cebu City 10 July

11. Cebu City 10 July

12. PH Energy Mix
Cebu City 10 July
INSTALLED
DEPENDABLE

13. SOURCES PERCENTAGES LUZ-VIS-MIN GRIDS
ENERGY MIX – per DOE 2013
SOURCES
PERCENTAGES
LUZ-VIS-MIN GRIDS
Cebu City 10 July

14. Cebu City 10 July

15. % SHARE
LUZON
VISAYAS
MINDANAO
Cebu City 10 July

16. Objective of EPIRA RESTRUCTURING PRIVATIZATION OPEN ACCESS &
RETAIL COMPETITION
RESTRUCTURING
PRIVATIZATION
R.A (EPIRA)
The BLUEPRINT
of the electricity industry.
Cebu City 10 July

17. RESTRUCTURING Before the reforms… Pre-2001 NATIONAL POWER CORPORATION
PLANTS
& IPPs
TRANSMISSION
DISTRIBUTION
END
USERS
18 PRIVATE
UTILITIES
2 LOCAL
GOVERNMENT
UNITS
120 ELECTRIC
COOPERATIVES
OTHER IPPs
SYSTEMS
OPERATIONS
END
USERS
Cebu City 10 July

18. RESTRUCTURING After the reforms SUPPLY GENERATION TRANSMISSION
DISTRIBUTION
SUPPLY
POWER
PLANTS
& IPPs
NATIONAL
TRANSMISSION
CORPORATION/NGCP
END
USERS
DISTRIBUTION
SUPPLY
TRANSMISSION
OTHER IPPs
MARKET
OPERATOR
18 PRIVATE
UTILITIES
2 LOCAL
GOVERNMENT
UNITS
120 ELECTRIC
COOPERATIVES
END
USERS
SYSTEMS
OPERATIONS
OTHER IPPs
Cebu City 10 July

19. RESTRUCTURING Performance Based Regulation Benchmarking
Competition at the wholesale & retail level
Cebu City 10 July

20.  RESTRUCTURING Existing contractual arrangements Generators
TRANSCO/NGCP
Distribution Utility
End-users 
Cebu City 10 July

21.   RESTRUCTURING Transaction flow under Open Access Regime NGCP WESM
Generators 
TRANSCO
NGCP
Distribution Utility
End-users
Cebu City 10 July

22. NPC DAYS BUNDLED vs. UNBUNDLED SAMPLE RESIDENTIAL BILL MAY 2001
Front and Back Pages
BUNDLED
NPC DAYS
Cebu City 10 July

23. Cebu City 10 July

25. PRIVATIZED PLANTS AND WESM
BUNDLED vs. UNBUNDLED
SAMPLE
RESIDENTIAL BILL
JULY 2013
Front and Back Pages
UNBUNDLED
PRIVATIZED PLANTS AND WESM
Cebu City 10 July

27. Cebu City 10 July

28. COMPARISONS
2001
vs.
2013
Bill
Formats
Cebu City 10 July

30. Creation of the ERC Sec. 38 of EPIRA “There is hereby created an
independent, quasi-judicial regulatory
body to be named the Energy Regulatory Commission (ERC).”
Cebu City 10 July

31. EPIRA – RA 9136
Sec. 41. Promotion of Consumer Interests. – The ERC shall handle consumer complaints and ensure the adequate promotion of consumer interests
Cebu City 10 July

32. OUR MAJOR TASKS: Generation Transmission Distribution Supply
Tariffs of NGCP TRANSCO
Philippine Grid Code
CAPEX plans
Ancillary services
Certificate of Compliance
Generation tariffs (Bilateral PSA)
SPUG (Missionary Electrification)
WESM monitoring
Competition Rules
Distribution
Supply
Tariffs of distribution utilities
Philippine Distribution Code
Lifeline rate
Franchise for consortium of sub- transmission assets
Stranded contract cost
Systems loss
CPCN
Spot inspections/ audits
Bilateral power supply contracts
CAPEX plans
Magna Carta and
DSOAR enforcement
*Loan Condonation
Suppliers’ licenses
Issuance of needed rules
for retail competition
Declaration of open access
and retail competition
Competitive
Natural Monopolies
Cebu City 10 July

33. Chief Executive Officer Administrative Service Regulatory Operations
Our ORGANIZATION
COMMISSION
Chair
Commissioner
General Counsel
& Secretariat of
the Commission
Chief Executive Officer
(Chair)
Internal Audit
Unit
Investigation &
Enforcement
Division
Executive Director
Field Offices
Financial and
Administrative Service
Legal Service
Planning and
Information Service
Regulatory Operations
Service
Market Operations
Service
Consumer Affairs
Service
Cebu City 10 July

34. Open Access and Retail Competition
The Journey
Open Access and Retail Competition
Transfer of NPC-IPP Contracts
Privatization of NPC
Establishment of WESM
Cross Subsidy Removal
Unbundling of Rates
Cebu City 10 July

35. Retail Competition Timeline
LUZON-VISAYAS GRIDS
750 kW – 999 kW
Aggregation within contiguous area allowed
1 MW & above
Household level
Year 1
DEC 2012
Transition period (26 December 2012 – 25 June 2013)
Initial commercial operations (26 June 2013 – 25 December 2013) 2
Year 3
Year 10
Cebu City 10 July

36. Ensuring progress through exemplary power regulation.
Vision and Mission
VISION:
Ensuring progress through exemplary power regulation.
MISSION:
A technically competent and professional ERC committed, through the exercise of its regulatory authority, to be the driving force in the transformation of the electric power industry in ensuring reasonable electricity rates, enhancing market competition, promoting long-term consumer interest,
and assuring that electricity industry participants provide and maintain safe, adequate, reliable, and efficient electric service.
Our vision is “Ensuring progress through exemplary power regulation.”
Our mission is “A technically competent and professional ERC committed, through the exercise of its regulatory authority, to be the driving force in the transformation of the electric power industry in ensuring reasonable electricity rates, enhancing market competition, promoting long-term consumer interest, and assuring that electricity industry participants provide and maintain safe, adequate, reliable, and efficient electric service.”
2014 Budget