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This page features the full text of
Republic Act No. 7648
Electric
Power Crisis Act of 1993
AN
ACT PRESCRIBING URGENT RELATED MEASURES NECESSARY AND PROPER TO
EFFECTIVELY
ADDRESS THE ELECTRIC POWER CRISIS AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7648AN
ACT PRESCRIBING URGENT RELATED MEASURES NECESSARY AND PROPER TO
EFFECTIVELY
ADDRESS THE ELECTRIC POWER CRISIS AND FOR OTHER PURPOSES.
Section
1. Short Title. — This act shall
be known as the "Electric Power Crisis Act of 1993."
Sec.
2. Declaration of Policy. — It
is hereby declared the policy of the State to adopt adequate and
effective
measures to address the electric power crisis that has disrupted the
country's
economic and social life and assumed the nature and magnitude of a
public
calamity.chanrobles virtual law library
Sec.
3. Negotiated Contracts. — Pursuant
to the above declared policy and in the public interest and whenever it
is advantageous to the Government, the President may enter into
negotiated
contracts for the construction, repair, rehabilitation, improvement or
maintenance of power plants, projects and facilities, subject to the
following
requirements:
(a) In
order to inform competitive contractors, the list of projects to be
undertaken
this Act, together with their description, the budgetary estimates
involved
and other salient features, shall be published in a newspaper of
general
circulation thirty (30) days after the effectivity of this Act;
chanrobles virtuallaw libraryred(b) Upon
perfection of the contract, the terms and conditions of the same, with
the name and qualifications of the contractor, shall likewise be
published
in a newspaper of general circulation two (2) weeks before the signing
of the contract;
(c) The
contracts shall be awarded only to contractors with:
(i) proven
competence and experience in similar projects; chanrobles virtuallaw libraryred(ii) competent
key personnel and sufficient and reliable equipment; and
(iii) sound
financial capacity; and
(d) All
the awarded projects shall be subject to existing government auditing
rules
and regulations governing negotiated contracts.
Sec.
4. Return on Rate Base. — Further
pursuant to the above- declared policy, the President is hereby
authorized,
whenever it is necessary for the national welfare and in the public
interest,
to fix the rate of return on rate base of the National Power
Corporation
(NAPOCOR) to not more than twelve per centum (12%) of the rate base as
defined in Section 4 of Republic Act No. 6395, as amended. Any increase
in power rates shall take effect only upon approval of the Energy
Regulatory
Board (ERB), after due notice and hearing; Provided, That any
increase
in power rates by the NAPOCOR to its customers within the year 1993
shall
not exceed an average of eighteen centavos (P0.18) per kilowatt house:
Provided, further, That any increase in power rates shall not be
passed on to households consuming not more than one hundred (100)
kilowatt-hours
per month for five (5) years following the effectivity of this Act: Provided,
furthermore, That the existing subsidy enjoyed by households
consuming
less than three hundred (300) kilowatt-hours per month shall continue
in
effect; Provided, finally, That no power rate increase
whatsoever
shall be imposed by the NAPOCOR in provinces producing geothermal power
of not less than one hundred megawatts (100 MW) of actual capacity for
one (1) year following the effectivity of this Act.
chanrobles virtuallaw libraryred
When
the petition appears to be sufficient in form and in substance, the
ERB,
during the pendency of the case, may issue a provisional authority to
increase
the power rates, in whole or in part, which increase shall last for a
period
of sixty (60) days, and may be extended for another sixty (60) days:
Provided,
That the ERB can issue such provisional authority only during the
effectivity
of this Act.chanrobles virtual law library
Sec.
5. Reorganization of the National
Power Corporation. — The President is hereby empowered to reorganize
the
NAPOCOR, to make it more effective, innovative, and responsive to the
power
crisis. For this purpose, the President may abolish or create offices;
split, group, or merge positions; transfer functions, equipment,
properties,
records and personnel; institute drastic cost-cutting measures and take
such other related actions necessary to carry out the purpose herein
declared.
Nothing in this Section shall result in the diminution of the present
salaries
and benefits of the personnel of the NAPOCOR: Provided, That
any
official or employee of the NAPOCOR who may be phased out by reason of
the reorganization authorized herein shall be entitled to such benefits
as may be determined by the Board of Directors of the NAPOCOR, with the
approval of the President.
The
President may upgrade the compensation of the personnel of the NAPOCOR
at rates comparable to those prevailing in privately- owned power
utilities
to take effect upon approval by Congress of the NAPOCOR's budget for
1994.cralaw:red
Sec.
6. Subsidy. — The Philippine
Amusement and Gaming Corporation (PAGCOR) shall set aside ten per
centum
(10%) of its annual aggregate gross earnings for the next five (5)
years
as subsidy to the NAPOCOR: Provided, That such percentage allocation
shall
be based on gross revenue after deducting the five per centum (5%)
franchise
tax and the fifty per centum (50%) income share of the National
Government.cralaw:red
Sec.
7. Duration of Grant of Powers.
— The authority granted to the President under this Act shall subsist,
be valid and effective for a period of one (1) year from the
effectivity
of this Act, unless sooner with- drawn by a resolution of Congress,
without
prejudice to rights and benefits that may have been vested, and
culpabilities
and liabilities that may have been incurred.
Sec.
8. Oversight Committees. — There
is hereby created an Oversight Committee in each House of Congress to
be
composed of five (5) members of each, as may be designated by the
Senate
President and the Speaker of the House of Representatives, to monitor
the
implementation of this Act and the exercise of the authority granted
thereunder.cralaw:red
The
Oversight Committees shall submit periodic reports, evaluations and
recommendations
to the Senate and the House of Representatives.
Sec.
9. Report to Congress. — The
President shall submit a quarterly report to Congress on the
Implementation
of this Act.cralaw:red
Sec.
10. Separability Clause. — If
for any reason any provision of this Act is declared unconstitutional
or
invalid, other parts or provisions hereof which are not affected
thereby
shall continue to be in full force and elect.cralaw:red
Sec.
11. Repealing Clause. — All laws,
decrees, orders, rules and regulations, or portions thereof,
inconsistent
with this Act are hereby repealed or modified accordingly.cralaw:red
Sec.
12. Effectivity Clause. — This
Act shall take effect on the day following its publication in at least
two (2) national newspapers of general circulation.
Approved:
April
5, 1993
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