Executive Order No.
215
AMENDING
PRESIDENTIAL
DECREE NO. 40 AND ALLOWING THE PRIVATE SECTOR TO GENERATE ELECTRICITY
WHEREAS,
Presidential Decree No. 40 places the responsibility of
setting up transmission line grids and the construction of associated
generation facilities in Luzon, Visayas, Mindanao and the major islands of the
country to the
National Power Corporation
(NPC);
WHEREAS,
the generation of electricity, unlike the transmission and distribution of
electricity, is not a natural monopoly and can be undertaken by more than one
entity;
WHEREAS,
the government, as a matter of policy, is encouraging the private sector to
participate in economic development and has started to disengage in areas which
can be adequately handled by the private sector;
WHEREAS,
the generation of electricity by the private sector can provide a means of
increasing power capacity to meet the projected increase in power demand in the
future without in any way requiring financial assistance or guarantee from the
government;
WHEREAS,
there is, on the other hand, an imperative need to rationalize the development
of energy resources and the operation of electric generating facilities in the
power grid;
NOW,
THEREFORE, I, CORAZON C. AQUINO,
President of the
SECTION 1. The
strategic and rational development of the country’s power grids shall be the
responsibility of the
National Power Corporation. Accordingly, the setting up of transmission
line grids and the construction of associated generating facilities in Luzon,
Visayas, and
(a) Cogeneration units, defined as production of electric energy and forms of useful thermal energy (such as heat or steam), used for industrial, commercial, heating or cooling purposes through sequential use of energy;
(b) Electric generating plants, intending to sell their production to the grids, consistent with the developmental plans formulated by the National Power Corporation;
(c) Electric generating plants, intended primarily for the internal use of the owner, which also plan to sell excess production to the grids; and
(d) Electric generating plants, outside the National Power Corporation grids, intending to sell directly or indirectly to end-users.
SEC. 2.
Rules and regulations to govern private sector involvement in power
generation shall be formulated by the
National Power Corporation for
areas within the
National
Power Corporation grids, and the
National Electrification Administration
for areas outside the
National Power Corporation grids. Such rules and regulations shall be made
subject to consultation with concerned agencies including the private sector
and the approval of the
Office of Energy
Affairs. These rules and regulations
shall include the following:
(a) Qualifications for accrediting private sector generations;
(b) Procedures for applying for accreditation as a private sector generator of electricity;
(c) Obligations of private sector generators which shall include efficiency standards to ensure reliability of power supply and the corresponding penalties for failure to comply with said standards;
(d) Terms and conditions for the purchase or for the transmission/distribution, as the case may be, of electricity generated by non-National Power Corporation entities; and
(e) Other matters which shall be necessary to implement this Order.
SEC. 3. The
Office of Energy
Affairs shall take the necessary measures to ensure that the
provisions of this Order are made effective.
SEC. 4. The
Department of
National Defense shall assist the
National Power Corporation, the
private utilities and the electric cooperatives in providing security to the
generating plants to prevent power black-outs, and in instituting the necessary
safeguards in cases of emergencies, including the training of
Armed Forces of the
Philippines personnel in power generation operations.
SEC. 5.
Numbers 2, 4, 5 and 6 of
Presidential Decree No. 40
are hereby amended accordingly. All
laws, orders, issuances, rules and regulations or parts thereof inconsistent
with this Executive Order are hereby repealed or modified accordingly.
SEC. 6.
This Executive Order shall take effect fifteen (15) days after the
issuance of the rules and regulations for the implementation of this Executive
Order.
Done
in the City of
What do you want to do now?
Go Back to the Top; Go back to art’s home page; Laugh or Be Entertained; Destroy Cartels and Monopolies; Invest or Find a Job; Check Software or a Computer; Check out the latest News; Look for a School; Greet a Friend; Dip Into Black Gold and be Electrified; Express Yourself; Relive the Past; Get Involved in the Law, Government, & Politics; Read Some Classics; Meet New People; Consult the laws of the Philippine energy sector; Philosophize; or Search.
This page is best viewed using Microsoft Internet Explorer 4.0 or higher.
Last revised: November 21, 2008 06:21 PM.
Caveat Emptor: Owners of the sites included herein do not explicitly endorse this page.
Comments, suggestions, objections, or violent reactions?