0.30 Rate Reduction

ERB Resolution No. 2001-04

WHEREAS, the Congress of the Philippines has enacted Republic Act No. 9136 (An Act Ordaining Reforms in the Electric Power Industy Amending for the Purpose Certain Laws and for Other Purposes) otherwise known as the "Electric Power Industry Reform Act of 2001"

WHEREAS, Section 81 of the said Republic Act No. 9136 provides that "(T)his Act shall take effect on the fifteenth day following its publication in at least two (2) national papers of general circulation";

WHEREAS, following its signing and approval by the President of the Philippines on June 8, 2001, Republic Act No. 9136 was published in the June 11, 2001 issues of the Philippine Daily Star and Manila Standard, both newspapers of general circulation in the country, thereby making June 26, 2001 as the date of effectivity of the said Republic Act;

WHEREAS, Section 72 of Republic Act No. 9136 provides that "(U)pon the effectivity of this Act, residential end-users shall be granted a rate reduction from NPC rates of thirty centavos per kilowatt-hour (P 0.30/Kwh). Such reduction shall be reflected as a separate item in the consumer billing statement";

WHEREAS, this Board is vested with the power and authority to determine, fix and regulate the rates charged by all electric distribution utilities, including the National Power Corporation (NPC), pursuant to Executive Order No. 172 and Section 18 of Republic Act No. 7638;

WHEREAS, while this Board has been abolished pursuant to Section 38 of Republic Act No. 9136, the same Section however authorizes the "current Board and existing personnel of ERB" to continue to hold office until the newly created Energy Regulatory Commission (ERC) has been constituted and the new staffing pattern and plantilla positions created in the ERC have been approved and filled up.

NOW, THEREFORE, be it resolved, as this Board hereby resolves, to implement, as it hereby implements, Section 72 of Republic Act No. 9136 by directing the National Power Corporation (NPC) to reduce its rates to electric distribution utilities sourcing their power supply entirely from NPC by an amount which, when passed on to the residential customers of said distribution utilities, will be equivalent to THIRTY CENTAVOS (P0.30) per kilowatthour effective with respect to its June 26 to July 25, 2001 billing cycle. For distribution utilities that obtain a portion of their power supply from sources other than NPC, the said rate reduction shall be proportionate to NPC's contribution to their power supply requirements.

June 26 , 2002