PHILIPPINES Law and Practice Contributed by: Maria Lethel C. Alburo-Mejia, Puno Law
kWh until the average goes below PHP9.00/ kWh. 2.2 Electricity Imports and Exports The Philippines does not currently have policies on imports and exports of electricity. 2.3 Supply Mix of Electricity Based on the latest available data from the DOE, even with the issuance of the coal moratorium in 2020, supply from coal-fired power plants com- prises 35.7% of the installed capacity, followed by renewable energy at 30.4%, oil-based energy at 29.5%, and natural gas at 4.4%. 2.4 Market Concentration Limits Section 45 of the EPIRA provides that: “No com- pany or related group can own, operate or con- trol more than thirty percent (30%) of the installed generating capacity of a grid and/or twenty-five percent (25%) of the national installed generat- ing capacity.” Further, no generation company associated with a distribution utility may supply more than 50% of the distribution utility’s total demand under bilateral contracts, without prejudice to the bilat- eral contracts entered into prior to the enact- ment of the EPIRA. All persons and entities covered by the MSL are reminded to strictly adhere to limitations, as well as to their duty to report to the ERC should they exceed the limits within 15 days from the start of the occurrence, and the reason for this. 2.5 Surveillance to Detect Anti- Competitive Behaviour The ERC is mandated under the EPIRA to pro- mote competition and penalise abuse of market power in the restructured electricity industry. The PCC, on the other hand, has the authority
to penalise all forms of anti-competitive agree- ments, abuse of dominant position and anti- competitive mergers and acquisitions pursuant to the Philippine Competition Act. In 2019, the ERC and the PCC entered into a memorandum of agreement which sets outs co-ordination and collaboration mechanisms to fulfil their respec- tive mandates in respect of the power industry. These mechanisms include sharing of informa- tion, conduct of joint fact-finding inquiries and capacity building.
3. Generation Facilities 3.1 Constructing and Operating Generation Facilities
The construction and operation of generation facilities are generally governed by the EPIRA and its implementing rules and regulations, the issuances of the ERC, in particular the 2023 Revised COC Rules, the Philippine Grid Code and the Philippine Distribution Code. In addi- tion, the RE Act applies in respect of renewable energy power plants. 3.2 Obtaining Approvals to Construct and Operate Generation Facilities Approvals are issued upon direct application with the relevant government agencies. Apart from some permits, such as the Environmental Compliance Certificate (ECC) and endorsements from the local government unit (LGU Endorse- ments), approvals are issued without the need for public hearings. Consultations with the stake- holders and affected communities are required in connection with the issuance of ECC and LGU endorsements. Consensus building is likewise mandated if the site is ancestral domain land. Applications for land rights over public lands, in the form of land-use permits or leases, are like-
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