PHILIPPINES Law and Practice Contributed by: Maria Lethel C. Alburo-Mejia, Puno Law
Transmission Wheeling Rates issued by the ERC under Resolution No 8, series of 2022. Under the rate reset process, the NGCP seeks approval for its annual revenue requirement (ARR), which it can recover from consumers. The ARR is com- puted using a formula that sums up operating and maintenance expenses, taxes other than income tax, and return on capital. The Rules, Terms and Conditions for the Provi- sion of Open Access Transmission Service (the “OATS Rules”) describe the services provided by the TNP that operates the high-voltage back- bone transmission system. The OATS Rules set out the responsibilities accepted by transmis- sion customers as a condition of receiving the services. Transmission customers and the TNP (currently the NGCP) will execute a connection agreement, transmission services agreement and metering services agreement which set out the terms of service. The OATS Rules mandate the TNP to provide open access, subject only to confirmation by the TNP that the grid will be adequate to accommo- date all or part of the service application or that no costs are likely to be incurred for new facili- ties or grid upgrades. This evaluation is carried out by conducting a system impact study and a facility study. 4.7 Open-Access and Non- Discriminatory Transmission
tions, the issuances of the ERC, and the Philip- pine Distribution Code. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities Approvals are issued upon making a direct appli- cation with the relevant government agencies. Apart from some permits, such as the ECC and endorsements from the local government unit (LGU endorsements), approvals are issued with- out the need for public hearings. Consultations with the stakeholders and affected communities are required in connection with the issuance of the ECC and LGU endorsements. Consensus building is likewise mandated if the site is an ancestral domain land. Applications for land rights over public lands, in the form of land-use permits or leases, are likewise made with the DENR, which is the gov- ernment agency that administers public lands in the Philippines. Land rights over private lands, on the other hand, are typically secured by agreement with the private landowners. The operation of electricity distribution facilities is a public utility which requires a franchise from Congress. The granting of a franchise is subject to a public hearing. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities The key approval for the operation of transmis- sion lines and associated facilities is the legisla- tive franchise. The franchise is typically valid for up to 50 years and contains the following rights and obligations:
5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities
The construction and operation of electricity dis- tribution facilities are generally governed by the EPIRA and its implementing rules and regula-
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