Electrical Power Industry Reform Act of 2001

RA 9136

electric power industry reform act of 2001 EPIRA law is also know as RA?

Supply of Electricity

means the sale of electricity by a party other than a generator or a distributor in the franchise area of a distribution utility using the wires of the distribution utility concerned

Distribution Code

refers to a compilation of rules and regulations governing electric utilities in the operation and maintenance of their distribution systems which includes, among others, the standards for service and performance, and defines and establishes the relationship of the distribution systems with the facilities or installations of the parties connected thereto

Electric Cooperative

refers to a distribution utility organized pursuant to Presidential Decree No. 269 as amended, or as otherwise provided in this Act

Co-Generation Facility

refers to a facility which produces electrical and or mechanical energy forms of useful thermal energy such as heat or steam which are used for industrial commercial heating or cooling purposes through the sequenbal use of energy

Franchise Area

refers to a geographical area exclusively assigned or granted to a distribution utility for distribution of electricity

Generation Company

refers to a person or entity authorized by the ERC to operate facilities used in the generation of electricity

Aggregator

refers to a person or entity, engage in consolidating electric power demand of end-users in the contestable market, for the purpose of purchasing and reselling electricity on a group basis

Intra-Regional Grid Cross Subsidy

refers to an amount embedded in the electricity rates of NPC charged to distribution utilities and non-ubilities with higher load factor and/or delivery voltage in order to reduce the electricity rates charged to distribution utilities with lower load factor/and or delivery voltage located in the same regional grid

Inter-Regional Grid Cross Subsidy

refers to an amount embedded in the electricity rates of NPC charged to its customers located in a viable regional grid in order to reduce the electricity rates in a less viable regional grid

Inter-Class Cross Subsidy

refers to an amount embedded in the electricity rates of NPC charged to the customer sectors in order to reduce electricity rates of other customer sections such as the residential end users, hospitals, and streetlights

Independent Power Producer or IPP

refers to an existing power generating entity which is not owned by NPC

Distribution Utility

refers to any electric cooperative, private corporation, government-owned utility or existing local government unit which has an exclusive franchise to operate a distribution system in accordance with this Act

Supplier

refers to any person or entity authorized by the ERC to sell, broker, market or aggregate electricity to the end-users

Electric Power Industry Participant

refers to any person or entity engaged in the generation, transmission, distribution or supply of electricity

End-user

refers to any person or entity requiring the supply and delivery of electricity for its own use

Stranded Debts of NPC

refers to any unpaid financial obligations of NPC which have not been liquidated by the proceeds from the sales and privatization of NPC assets

Captive Market

refers to electricity end user who do not have the choice of supplier of electricity, as may be determined by the energy regulatory commission (ERC)

Renewable Energy Resources

refers to energy resources that do not have an upper limit on the total quantity to be used. Such resources are renewable on a regular basis and the renewable rate is rapid enough to consider availability over an indefinite time. These include among others, biomass, solar, wind, hydro and ocean energy

Demand Side Management

refers to measures undertaken by distribution utilities to encourage end users in the proper management of their load to achieve efficiency in the utilization of fixed infrastructures in the system

IPP Administrator

refers to qualified independent entities appointed by PSALM Corporation who shall administer, conserve and manage the contracted energy output of NPC IPP contracts

Concession Contract

refers to the award by the government to a qualified private entity of the responsibility for financing, operating, expanding, maintaining and managing specific government-owned

Isolated Distribution System

refers to the backbone system of wires and associated facilities not directly connected to the national transmission system

Supplier's Charge

refers to the charge imposed by electricity suppliers for the sale of electricity to end users, excluding the charges for generation, transmission and distribution wheeling

Universal Charge

refers to the charge, if any, imposed for the recovery of the stranded cost and other purposed pursuant to Section 34 thereof

Customer Service Charge

refers to the component in the retail rate intended for the cost recovery of customer-related services including, but not limited to, meter reading, billing administration and collection

Distribution of Electricity

refers to the conveyance of electric power by a distribution utility through its distribution system pursuant to the provisions of this Act

Transmission of Electricity

refers to the conveyance of electricity through the high voltage backbone system

Power Sector Assets and Liabilities Management Corporation or PSALM Corp

refers to the corporation created pursuant to Section 49 thereof

National Transmission Corporation or TRANSCO

refers to the corporation organized pursuant to this Act to acquire all the transmission assets of the NPC

Distribution Wheeling Charge

refers to the cost or charge regulated by the ERC for the use of a distribution system and/or the availment of related services

Commission

refers to the decision-making body of the ERC composed of a Chairman and four members as provided under Section 38 hereof

Contestable Market

refers to the electricity end users who have a choice of a supplier of electricity, as may be determined by the ERC in accordance with this Act

Stranded contract costs of NPC or distribution utility

refers to the excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market

Subtransmission Assets

refers to the facilities rested to the power delivery service below the transmission voltages and based on the functional assignment of assets including but not limited to step down transformers used solely by load customers, associated switchyard/substation, control and protective equipment, reactive compensation equipment to improve customer power, overhead lines, and the land such facilities/equipment are located

Small Power Utilities Group or SPUG

refers to the functional units of NPC created to pursue missionary electrification function

Department of Finance or DOF

refers to the government agency created pursuant to Executive Order No 127

Department of Energy or DOE

refers to the government agency created pursuant to Republic Act No 7368 whose expanded functions are provided herein

National Electrification Administration or NEA

refers to the government agency created under Presidential Decree No. 269 as amended and whose additional mandate is further set forth therein

National Power Corporation or NPC

refers to the government corporation created under Republic Act No 6395, as amended

Grid

refers to the high voltage backbone system of interconnected transmission lines substations and nated facilities

Energy Regulatory Board or ERB

refers to the independent, quasi-judicial regulatory body created under Executive Order No. 172 as amended

Power Development Program or PDP

refers to the indicative plan for managing electricity demandi through energy efficient programs and for the upgrading, expansion, rehabilitation, repair and maintenance of power generation and transmission facilities, formulated and updated yearly by the DOE In coordination with the generation, transmission and distribution utility companies

Retail Rate

refers to the price paid by end-users consisting of the charges for generation, transmission and related ancillary services, distribution, supply and other related charges for electric service

Central Dispatch

refers to the process of issuing direct instructions to electric power industry participants by the grid operator to achieve the economic operation and maintenance of quality, stability, reliability and security if the transmission system

Restructuring

refers to the process of reorganizing the electric power industry in order to introduce higher efficiency, greater innovation and end-user choice. It shall be understood as covering a range of alternatives enhancing exposure of the industry to competitive market forces

Generation of Electricity

refers to the production of electricity by a generation company or a co-generation facility pursuant to the provision of this Act

Transmission Development Plan or TDP

refers to the program for managing the transmission system through efficient planning for the expansion, upgrading, rehabilitation, repair and maintenance, to be formulated by DOE and implemented by the TRANSCO pursuant to this Act

Transmission Charge

refers to the regulated cost or charges for the use of a transmission system which may include the avaiment of ancillary services

Energy Regulatory Commission or ERC

refers to the regulatory agency created herein

Privatization

refers to the sale, disposition, change and transfer of ownership and control of assets and IPP contracts from the government corporation to a private person or entity

Grid Code

refers to the set of rules and regulations governing the safe and reliable operation, maintenance and development of the high voltage backbone transmission system and its related facilities

Lifeline Rate

refers to the subsidized rate given to low-income captive market end users who cannot afford to pay at full cost

Open Access

refers to the system of allowing any qualified person the of transmission and/or distribution system and associated facilities subject to the payment transmission and/or distribution retail wheeling rates duly approved by the ERC

Distribution System

refers to the system of wires and associated facilities belonging to a franchised distribution utility extending between the delivery points on the transmission or subtransmission system or generator connection and the point of connection to the premises of the end-user

Ancillary Services

refers to those services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system