Distribution Sector

Distribution Sector. The distribution of electricity to end-users shall be a regulated common carrier business requiring a national franchise. Distribution of electric power to all end-users may be undertaken by private distribution utilities, cooperatives, local government units presently undertaking this function and other duly authorized entities, subject to regulation by the ERC. (Sec. 22, RA 9136)

Distribution Utility refers to any electric cooperative, private corporation, government-owned utility or existing local government unit which has an exclusive franchise area to operate a distribution system in accordance with this Act. (Sec. 4 q, RA 9136)

EVALUATION AND APPROVAL OF CAPITAL EXPENDITURES OF TRANSMISSION AND DUs

Republic Act 9136, Section 43 (f) (v)

Any significant operating costs or project investments of the TRANSCO and distribution utilities which shall become part of the rate base shall be subject to verification by the ERC to ensure that the contracting and procurement of the equipment, assets and services have been subjected to transparent and accepted industry procurement and purchasing practices to protect the public interest.