E N E R GY R E G U L AT O RY

COMMISSION

E L E C T I V E 4
 Electric
Power
HISTORY Industry
Reform Act
OF ERC of 2001
Section 38. Creation of the Energy Regulatory

Commission - There is hereby created an

independent, quasi-judicial regulatory body to be

named the Energy Regulatory Commission (ERC). For

this purpose, the existing Energy Regulatory Board

(ERB) created under Executive Order No. 172, as

amended, is hereby abolished."

M E – 5 C -[ ELECTIVE 4 ]-
 - [E R C ]-
April 30,
1971
BRIEF HISTORY OF September 24,
ENERGY 1972

REGULATION October 6,
The regulation of public services started way back in 1902 with the enactment of Act No. 520
which created the Coastwise Rate Commission. In 1906, Act No. 1507 was passed creating the 1977
Supervising Railway Expert. The following year, Act No. 1779 was enacted creating the Board of
Rate Regulation. Then, Act No 2307, which was patterned after the Public Service Law of the
State of New Jersey, was approved by the Philippine Commission in1914, creating the Board of
May 8, 1987
Public Utility Commissioners, composed of three members which absorbed all the functions of
the Coastwise Rate Commission, the Supervising Railway Expert, and the Board of Rate
Regulation.

Thereafter, several laws were enacted on public utility regulation. On November 7, 1936,
December 28,
Commonwealth Act No. 146, otherwise known as the Public Service Law, was enacted by the
National Assembly. The Public Service Commission (PSC) had jurisdiction, supervision, and 1992
February 10,
control over all public services, including the electric power service.

After almost four decades, significant developments in the energy sector changed the
landscape of economic regulation in the country. 1998
June 12, 1998

June 8, 2001
 -[ E R C ]-

WHAT ARE THE ERC’S PRIMARY

FUNCTION
THE ERC ’S PRIMARY FUNCTION ARE THE FOLLOWING:
1. Promote Competition
2. Encourage Market Development
3. Ensure Customer Choice
4. Regulate Electricity Rates
5. Penalize Abuse of Market Power
6. Promote Consumer Interests
7. Enforce the Implementing Rules and Regulations of the EPIRA
 -[ E R C ]-

DIFFERENT SERVICES

Regulatory Market Consumer Finance and

Operati ons Operati ons Aff airs A dministrati ve
Ser vice Ser vice Ser vice Ser vice

Legal Planning and

Offi ce of the
Ser vice Informati on
Counsel And
Ser vice
General Secretariat
 -[ E R C ]-

OBJECTIVES AND CORE VALUES

OBJECTIVES
1.  To promulgate/approve rules, regulations, guidelines and policies.
2.  To enforce rules, regulations including issuance of permits and licenses.
3.  To resolve cases (rates and other cases) and disputes.
4.  To promote consumer interest.
5.  To become a dynamic organization of professional people with the highest degree of
technical competence and integrity.
 -[ E R C ]-

OBJECTIVES AND CORE VALUES

CORE VALUES
1. Integrity
2. Transparency and Accountability
3. Excellence
4. Professionalism 
5. Teamwork 
6. Public Service 
Republic Act No. 9136, also known as the “Electric Power Industry
Reform Act of 2001,” mandated the creation of the Energy Regulatory
Commission (ERC). Section 43(b) of the Act mandates the ERC to
promulgate and enforce a National Grid Code and a Distribution
Code which shall include, but not limited to: (a) Performance
Standards for TRANSCO O & M Concessionaire, Distribution Utilities
and suppliers, and (b) Financial Capability Standards for the
Generating Companies, the TRANSCO’s Concessionaire, Distribution
Utilities and Suppliers. The Act also mandates the ERC to enforce
compliance to the Philippine Grid Code, the Philippine Distribution
Code and the Market Rules and to impose fines and penalties for
violations of their provisions.
THE PHILIPPINE GRID CODE (2016 EDITION)
• establishes and documents the basic rules, requirements,
procedures and standards that govern the operation, maintenance
and development of the high voltage backbone transmission system
of the Philippines
OBJECTIVES
(a) To refine the existing provisions of the Philippine Grid Code Amendment No. 1;
(b) To be responsive to the latest developments, standards, and recent practices in the
electric power industry, both local and international;
(c) To adopt and fully implement the connection and operational requirements for
Variable Renewable Energy (VRE) Generating Facilities consistent with the
Renewable Energy Act; and
(d) To be in harmony with and complementary to existing Rules and Regulations issued
by the DOE and the ERC.
THE PHILIPPINE DISTRIBUTION CODE (2017 EDITION)

• Establishes the basic rules and procedures that govern the

operation, maintenance, development, connection, and
use of the electric distribution systems in the Philippines.
• The ERC established the DISTRIBUTION MANAGEMENT
COMMITTEE (DMC) to monitor the Philippine Distribution
Code compliance at the planning and operations level and
to submit regular and special reports pertaining to
distribution planning and operations.