News

Draft Business Separation and Unbundling Plan and Comments

I. NOTICE, ERC Case No. 2003-46

Notice is hereby given that the proposed Business Separation Guidelines providing for the Framework and Rules for the Structural Unbundling of the Business Activities of Electric Industry Participants is scheduled for public consultation on February 25, 2003 at nine o'clock (9:00 AM) in the morning at the Energy Regulatory Commission (ERC) Hearing Room, 15th Floor, Pacific Center Bldg., San Miguel Avenue, Ortigas Center, Pasig City.

All interested parties may submit their written comments (both hard and soft copies) on the proposed guidelines on or before February 20, 2003. Only parties who have filed their written comments on or before the prescribed period would be allowed to participate in the above scheduled public consultation. The proposed guidelines may be photocopied, at cost, during the usual office hours at the ERC Main Office at the abovementioned address and downloadable from the ERC website at www.erc.gov.ph.

PROCEDURES FOR CONSULTATION ON BUSINESS SEPARATION GUIDELINE

Pursuant to Section 36 of the Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001, and Rule 10.1 of the Implementing Rules and Regulations issued pursuant to that Act, the Energy Regulatory Commission (ERC):

is required to ensure that electric power industry participants structurally and functionally unbundle their business activities at least as between generation, transmission, distribution and supply; and

is authorized to formulate the appropriate guidelines for that purpose.

Today, the ERC has issued its proposed Business Separation Guideline, together with an accompanying Business Separation and Unbundling Plan Filing Package. The Business Separation Guideline provides the framework and rules for the structural and functional unbundling of the business activities of electric power industry participants. In particular, it provides for accounting separation as between regulated and non-regulated business activities, the manner in which reports in relation to the resulting business segments must be prepared and provided to the ERC and the allocation of revenues and costs to such business segments. It also imposes various obligations in relation to discrimination in the provision of distribution services, the use of customer-related information, the disclosure of information relating to electricity networks and generation facilities, the cross-subsidization of non-regulated activities, transmission business separation, common directors, officers and employees as between unaffiliated corporate groups, and compliance with a code of conduct that is yet to be promulgated by the ERC. The Business Separation and Unbundling Plan Filing Package is intended to facilitate the required unbundling by setting out the information that must be included in the business separation and unbundling plans that must be prepared by electric power industry participants, and submitted for approval by the ERC, pursuant to Rule 10 of the Implementing Rules and Regulations.

The Business Separation Guideline and Business Separation and Unbundling Plan Filing Package, together with a summary presentation on them, have been posted on the ERC’s website at www.erc.gov.ph.

The consultation process shall proceed as follows:

Interested parties may fax or e-mail written comments or questions on the proposed guideline and filing package, which must be received by the ERC prior to close of business on February 20, 2003. All written comments or questions will be published on the website as these are received.

The ERC shall prepare responses to such comments or questions and post these on its website prior to the day of the verbal consultation. As such, any written comments and questions provided shall be considered read, and do not need to be reiterated further in the verbal consultation.

The verbal consultation shall be held on February 25, 2003. This session shall commence at 9:00 AM, break for lunch at 12:00 PM, resume at 2:00 PM and end at 4:00 PM, or earlier should there be no further comment or discussion for the day. No irrelevant requests for adjournment or delay of the verbal consultation shall be entertained. Only parties who have lodged written comments or questions with the ERC prior to close of business on February 20, 2003 will be entitled to participate in the verbal consultation. All parties must have read the material posted on the ERC’s website prior to the verbal consultation.

Questions raised during the hearing, and not answered at the hearing, shall have answers prepared by the ERC which will be posted on its website as soon as is practical.

The ERC expects that, for the purposes of the verbal consultation, all parties shall limit their participation to new areas of comment or new questions. The ERC shall reserve its right to limit repetition of comments or questions previously raised and answered. Additional discussion of detailed points is encouraged, but the ERC shall in some instances take the question on notice for detailed response on its website.

Following the verbal consultation, the ERC shall work to finalize its consideration of all the written and verbal comments raised during the consultation process in a timely manner.

Interested parties may submit their comments by either fax at 634-8641, 631-7287, and 631-5879 or email at regulatory@erc.gov.ph, attention of Atty. Marina C. Bugayong or Ms. Alma C. Clemente of the Regulatory Operations Service.

NOTICE, ERC Case No. 2003-46, Reset of hearing to March 5, 2003

Consultation on the Proposed Guidelines on BSUP, March 5, 2003

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II. GUIDELINES OVERVIEW

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Business Separation Guideline Overview (Zip PowerPoint file, 33 KB)

III. DRAFT GUIDELINES FOR DISCUSSION

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Business Separation Guideline (PDF, 359 KB)

BSUP Filing Package (PDF, 114 KB)

IV. COMMENTS ON THE DRAFT BUSINESS SEPARATION AND UNBUNDLING PLAN

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