ERC promulgates Rules on CPCN issuance
The Energy Regulatory Commission (ERC) promulgated the “Rules to Govern the Issuance of Certificate of Public Convenience and Necessity (CPCN) to Entities Engaged in the Transmission and Distribution of Electricity”. This set of Rules, which establishes the procedures, standards, and criteria for the issuance of a CPCN, is embodied in ERC Resolution No. 5, Series of 2008 and will take effect on 16 April 2008.
A CPCN is an authorization issued by the ERC to entities engaged in the operation of a transmission or distribution system that have been granted by a franchise either by Congress, under the present laws, or other vested entities under the old laws. All entities engaged in the transmission and distribution of electricity are required to file their formal application for a CPCN only before the ERC following amendment on the Electric Power Industry Reform Act (EPIRA) to the pre-war Public Service Act. Only legal applicants (corporations, co-partnerships, associations, or joint-stock companies with 60% of the stock or paid up capital entirely belong to citizens of the Philippines) with technical and financial capabilities and valid franchise for operating and maintaining a transmission or distribution system issued by the Philippine Congress will be qualified for a CPCN issuance.
The Rules spell out: (1) the technical requirements in filing for new or renewal of CPCNs; (2) the obligations of the CPCN grantee; and (3) the grounds for amendment or revocation of CPCN. Pursuant to Section 43 (e) and (p) of the EPIRA, the ERC is authorized to amend or revoke the CPCN of any entity under certain circumstances specified in the subject Rules which include, among others, the failures in meeting service standards by electric utilities.
“This issuance is one of the latest contributions of the ERC towards reforming the electric power industry wherein the long-term consumer interests are promoted and protected,“ ERC Chairman and CEO Rodolfo B. Albano, Jr. said.
April 4 , 2008