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Reported by:
Mark Howell L. Esguerra
Republic Act 7638 (1992)
Bureaus And
Services Department of
Undersecretary
Department Energy
Assistant
Secretaries
The Secertary
The Secretary shall be
appointed by the
President, subject to
The Secretary shall be
confirmation by the
an ex officio member of The Secretary shall also
Commission on
the Board of the be a member of the
Appointments. No
National Economic and body authorized to
officer, external auditor,
Development Authority formulate, prescribe, or
accountant, or legal
(NEDA). He shall also be amend the necessary
counsel of any private
a member of the guidelines for the
company or enterprises
NEDA’s Committee on financing, construction,
primarily engaged in
Infrastructure operation, and
the energy industry shall
(INFRACOM) and the maintenance of the
be eligible for
Investment infrastructure projects
appointment as
Coordinating Council by the private sector.
Secretary within two (2)
(ICC).
years from his
retirement, resignation,
or separation therefrom
Functions of the Secretary
Establish policies and standards for the effective, efficient, and economical
operation of the Department in accordance with the programs of the
Government
Exercise direct supervision and control over all functions and activities of
the Department, as well as all its officers and personnel
Devise a program of international information on the geological and
contractual conditions obtaining in the Philippines for oil and gas
exploration in order to advance the industry
Create regional offices and such other service units and divisions as may be
necessary
Create regional or separate grids as may be necessary or beneficial
Perform such other functions as may be necessary or proper to attain the
objectives of this Act.
• good moral
character
• citizen and resident
of the Philippines
• of proven
competence in any
of the following fields:
Qualifications (a) energy or utility
economics; (b)
public administration;
(c) physical or
engineering
sciences; (d)
management; or (e)
law.
Powers and Functions (Section 37 RA
9136)
Formulate policies for the planning and implementation of a
comprehensive program for the efficient supply and economical use of
energy consistent with the approved national economic plan and with the
policies on environmental protection and conservation and maintenance
of ecological balance, and provide a mechanism for the integration,
rationalization, and coordination of the various energy programs of the
Government
Powers and Functions (Section 37 RA
9136)
Develop and update the existing Philippine energy program which shall
provide for an integrated and comprehensive exploration, development,
utilization, distribution and conservation of energy resources, with
preferential bias for environment-friendly, indigenous, and low-cost sources
of energy. The program shall include a policy direction towards the
privatization of government agencies related to energy, deregulation of
the power and energy industry and reduction of dependency on oil-fired
plants. Said program shall be updated within nine (9) months from its
completion and not later than the fifteenth day of September every year
thereafter.
Powers and Functions (Section 37 RA
9136)
Prepare and update annually a Power Development Program (PDP) and
integrate the same into the Philippine Energy Plan. The PDP shall consider
and integrate the individual or joint development plans of the transmission,
generation, and distribution sectors of the power industry, which are
submitted to the Department: Provided, however, That the ERC shall have
exclusive authority covering the Grid Code and the pertinent rules and
regulations it may issue
Ensure the reliability, quality and security of supply of electric power
Powers and Functions (Section 37 RA
9136)
Following the restructuring of the electricity sector, the DOE shall, among others:
(i) Encourage private sector investments in the electricity sector and promote
development of indigenous and renewable energy sources;
(ii) Facilitate and encourage reforms in the structure and operations of distribution utilities
for greater efficiency and lower costs;
(iv) Undertake, in coordination with the ERC, NPC, NEA and the Philippine Information
Agency (PIA), information campaign to educate the public on the restructuring of the
electricity sector and privatization of NPC assets
Powers and Functions (Section 37 RA
9136)
Jointly with the electric power industry participants, establish the wholesale
electricity spot market and formulate the detailed rules governing the
operations thereof
Establish and administer programs for the exploration, transportation,
marketing, distribution, utilization, conservation, stockpiling, and storage of
energy resources of all forms, whether conventional or non-conventional
Exercise supervision and control over all government activities relative to
energy projects in order to attain the goals embodied in Section 2 of RA
7638
Develop policies and procedures and, as appropriate, promote a system of
energy development incentives to enable and encourage electric power
industry participants to provide adequate capacity to meet demand
including, among others, reserve requirements
Powers and Functions (Section 37 RA
9136)
Monitor private sector activities relative to energy projects in order to attain
the goals of the restructuring, privatization, and modernization of the power
sector as provided for under existing laws: Provided, That the Department
shall endeavor to provide for an environment conducive to free and active
private sector participation and investment in all energy activities
Assess the requirements of, determine priorities for, provide direction to, and
disseminate information resulting from energy research and development
programs for the optimal development of various forms of energy
production and utilization technologies; (l) Formulate and implement
programs, including a system of providing incentives and penalties, for the
judicious and efficient use of energy in all energy-consuming sectors of the
economy
Powers and Functions (Section 37 RA
9136)
Formulate and implement a program for the accelerated development of
non-conventional energy systems and the promotion and
commercialization of its applications
Devise ways and means of giving direct benefit to the province, city, or
municipality, especially the community and people affected, and
equitable preferential benefit to the region that hosts the energy resource
and/or the energy-generating facility: Provided, however, That the other
provinces, cities, municipalities, or regions shall not be deprived of their
energy requirements
Encourage private enterprises engaged in energy projects, including
corporations, cooperatives, and similar collective organizations, to broaden
the base of their ownership and thereby encourage the widest public
ownership of energy-oriented corporations
Powers and Functions (Section 37 RA
9136)
Formulate such rules and regulations
Exercise such other powers as may be necessary or incidental to attain the
objectives of this Act
Bureau and Services (AO 38)
Administrative
Energy Policy and Services, Financial
Planning Bureau Services and Legal
Services
Energy Resource Development Bureau
To promote, encourage and assist public service entities and government agencies and
corporations having related functions and purposes, with preference to cooperatives, in
planning, developing, coordinating, establishing, operating, maintaining, repairing and
renovating facilities and systems to supply area coverage service, and for such purpose to
furnish, to the extent possible and without change therefor, technical and professional
assistance and guidance, information, data and the results of any investigation, study, or
receipt conducted or made by the NEA
To make loans for the purpose of financing the wiring of premises of persons served or to
be served as a result of loans made under sub-paragraph (f) of this Section, and for the
acquisition and installation by such persons of electrically-powered appliances,
equipment, fixtures and machinery of all kinds for residential, recreational, commercial,
agricultural and industrial uses, such loans to be made directly (1) to public service entities
which have received loans under sub-paragraph (f) of this section, which entities shall in
turn relend such funds to persons served or to be served by them, or (2) to any persons
served or to be served by public service entities which have received loans under sub-
paragraph (f) of this section: Provided, That at no time shall the total loans made under this
sub-paragraph (i) to a public service entity and/or to persons served or to be served by
such entity exceed twenty-five (25%) per centum of the outstanding loans to such entity
made under sub-paragraph (f) of this section
National Electrification Administration
Jurisdiction
Fix and regulate the rate
schedule or prices of Fix and regulate the rates
piped gas to be charged of pipeline
Fix and regulate the
by duly franchised gas concessionaries under
prices of petroleum
companies which the provisions of Republic
products
distribute gas by means Act No. 387, as
of underground pipe amended
system
THE Energy Regulatory Board
Jurisdiction
Whenever the Board has determined that
there is a shortage of any petroleum
product, or when public interest so requires,
it may take such steps as it may consider
Regulate the capacities of new refineries or
necessary, including the temporary
additional capacities of existing refineries
adjustment of the levels of prices of
and license refineries that may be
petroleum products and the payment to
organized after the issuance of this
the Oil Price Stabilization Fund created
Executive Order, under such terms and
under Presidential Decree No. 1956 by
conditions as are consistent with the
persons or entities engaged in the
national interest
petroleum industry of such amounts as may
be determined by the Board, which will
enable the importer to recover its cost of
importation
Authority to Grant Provisional Relief
(SEC 9 EO 172)
The Board may, upon the filing of an application, petition or complaint or at
any stage thereafter and without prior hearing, on the basis of supporting
papers duly verified or authenticated, grant provincial relief on motion of a
party in the case or on its own initiative, without prejudice to a final decision
after hearing, should the Board find that the pleadings, together with such
affidavits, documents and other evidence which may be submitted in
support of the motion, substantially support the provisional order: Provided,
That the Board shall immediately schedule and conduct a hearing thereon
within thirty (30) days thereafter, upon publication and notice to all
affected parties.
Effectivity of Board's Decision or Orders
(Sec 9 EO 172)
All decisions or orders of the Board to continue an existing service or
determining, fixing and prescribing rates to be charged shall be
immediately operative; and all other decisions or orders shall become
effective upon the dates specified thereon: Provided, however, That
decisions, orders, or resolutions in controverted matters and not referring to
the continuance of an existing service or determining, fixing and
prescribing rates to be charged shall take effect thirty (30) days after notice
to the parties, unless otherwise provided by the Board.
Functions and Powers transferred to
ERC from ERB
Enforce the rules and regulations governing the operations of the electricity
spot market and the activities of the spot market operator and other
participants in the spot market, for the purpose of ensuring a greater supply
and rational pricing of electricity
Amend or revoke the authority to operate of any person or entity which
fails to comply with the provisions hereof, the IRR or any order or resolution
of the ERC, after due notice and hearing. In the event a divestment is
required, the ERC shall allow the affected party sufficient time to remedy
the infraction or for an orderly disposal, but shall in no case exceed twelve
(12) months from the issuance of the order
Exercise original and ExclusiveJurisdiction over all cases contesting rates,
fines and penalties imposed by ERC.
Republic Act No. 8180
It shall be the policy of the State to deregulate the downstream oil industry
to foster a truly competitive market which can better achieve the social
policy objectives of fair prices and adequate, continuous supply of
environmentally-clean and high-quality petroleum products
The shall apply to all persons or entities engaged in any or all the activities
of the domestic downstream oil industry, as well as persons or companies
directly importing refined petroleum products for their own use
DEREGULATING THE DOWNSTREAM OIL
INDUSTRY AND FOR OTHER PURPOSES (RA
8479)
It shall be the policy of the State to liberalize and deregulate the
downstream oil industry in order to ensure a truly competitive market under
a regime of fair prices, adequate and continuous supply of
environmentally-clean and high-quality petroleum products. To this end,
the State shall promote and encourage the entry of new participants in the
downstream oil industry, and introduce adequate measures to ensure the
attainment of these goals.
Liberalization of the Industry
any person or entity may import or purchase any quantity of crude oil and
petroleum products from a foreign or domestic source, lease or own and
operate refineries and other downstream oil facilities and market such
crude oil and petroleum products either in a generic name or his or its own
trade name, or use the same for his or its own requirement: Provided, That
any person who shall engage in any such activity shall give prior notice
thereof to the DOE for monitoring purposes: Provided, further, That such
notice shall exempt such person or entity from securing certificates of
quality, health and safety and environmental clearance from the proper
governmental agencies: Provided, furthermore, That such person or entity
shall, for monitoring purposes, report to the DOE his or its every
importation/exportation: Provided, finally, That all oil importations shall be in
accordance with the Basel Convention.
Tariff Treatment
a single and uniform tariff duty shall be imposed and collected both on
imported crude oil and imported refined petroleum products at the rate of
three percent (3%): Provided, however, That the President of the Philippines
may, in the exercise of his powers, reduce such tariff rate when in his
judgment such reduction is warranted, pursuant to Republic Act No. 1937,
as amended, otherwise known as the Tariff and Customs Code: Provided,
further, That beginning January 1, 2004 or upon implementation of the
Uniform Tariff Program under the World Trade Organization and ASEAN Free
Trade Area commitments, the tariff rate shall be automatically adjusted to
the appropriate level notwithstanding the provisions under this Section
For as long as the National Power Corporation (NPC) enjoys exemptions
from taxes and duties on petroleum products used for power generation,
the exemption shall apply to purchases through the local refineries and to
the importation of fuel oil and diesel
Promotion of Fair Trade Practices (Sec 7)
The Department of Trade and Industry (DTI) and DOE shall take all measures to
promote fair trade and prevent cartelization, monopolies, combinations in
restraint of trade, and any unfair competition in the Industry as defined in Article
186 of the Revised Penal Code, and Articles 168 and 169 of Republic Act No.
8293, otherwise known as the "Intellectual Property Law". The DOE shall continue
to encourage certain practices in the industry which continue to encourage
certain practices in the Industry which serve the public interest and are
intended to achieve efficiency and cost reduction, ensure continuous supply of
petroleum products, and enhance environmental protection. These practices
may include borrow-and-loan agreements, rationalized depot and
manufacturing operations, hospitality agreements, joint tanker and pipeline
utilization, and joint actions on spill control and fire prevention
The DOE shall monitor the relationship between the oil companies (refiners and
importers) and their dealers, haulers and LPG distributors to help ensure the
observance of fair and equitable practices and to ensure the enforcement of
existing contracts: Provided, That the DOE shall conciliate and arbitrate any
dispute that may arise with respect to the contractual relationship between the
oil companies and the dealers, haulers and LPG distributors involving the
dealers' mark-up, the freight rate in transporting petroleum products and the
margins of LPG distributors for the protection of the public and to prevent
ruinous competition: Provided, further, That the arbitration award of the DOE
shall be subject to judicial review under existing law
Anti-Trust Safeguard (Sec 11)
Any person or entity shall report any violation of Section 11 of this Act to the
Joint Task Force. The Joint Task Force shall investigate such reports in aid of
which the DOE Secretary may exercise the powers under Section 15 of this
Act. The Joint Task Force shall prepare a report embodying its findings and
recommendations as a result of any such investigation, and the report shall
be made at the discretion of the Joint Task Force. In the event that the
Joint Task Force determines that there has been a violation of Section 11 of
this Act, the private person or entity shall be entitled to sue for and obtain
injunctive relief, as well as damages, in the Regional Trial Court having
jurisdiction over any of the parties, under the same conditions and
principles as injunctive relief is granted under the Rules of Court
Thank you!