EXECUTIVE ORDER NO. 172 May 8, 1987
CREATING THE ENERGY REGULATORY BOARD
WHEREAS, the institutional set-up in the energy sector is such that there are a number of regulatory bodies and supervisory Departments/Offices which provide the policy guidelines and regulatory framework for the activities and operations within the sector;
WHEREAS, in order to achieve a more coherent and effective policy formulation, coordination, implementation and monitoring within the energy sector, it is necessary to consolidate and entrust in one body all the regulatory and adjudicatory functions covering the energy sector;
WHEREAS, the concerns for national security and public interest articulated in Republic Act No. 6173, which created an independent Oil Industry Commission, still retain their validity and urgency at present; and
WHEREAS, Executive Order No. 5 (1986), directs that necessary and appropriate changes in the organizational and functional structures of the government, its agencies and instrumentalities be effected to promote efficiency and effectiveness in the delivery of public services;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of...
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Executive Orders
Creating the Energy Regulatory Board
Executive Order No. 172
Creation of the Energy Regulatory Board (ERB)
- An independent Energy Regulatory Board is created as the nucleus of the present Board of Energy. (Section 1)
- The ERB shall be composed of a Chairman and four Members appointed by the President, with the consent of the Commission on Appointments. (Section 1)
- The Chairman and Members must be natural-born Filipino citizens, at least 35 years old, and have recognized competence in relevant fields. (Section 1)
- The Chairman and Members shall have a term of 4 years, with term limits and staggered initial terms. (Section 1)
- The Chairman's compensation shall be equal to that of a Department Undersecretary, and Members shall receive compensation equal to the official next in rank to a Department Undersecretary. (Section 1)
- The ERB shall have an Executive Director, who shall be a member of the Philippine Bar with at least 5 years of experience, and other technical staff. (Section 2)
Powers and Functions of the ERB
- The ERB may regulate the business of importing, exporting, re-exporting, shipping, transporting, processing, refining, marketing, and distributing energy resources when public necessity requires. (Section 3)
- The ERB shall have the power to: (Section 3)
- Fix and regulate prices of petroleum products. (Section 3a)
- Fix and regulate rate schedules or prices of piped gas charged by franchised gas companies. (Section 3b)
- Fix and regulate rates of pipeline concessionaries under the Petroleum Act of 1949. (Section 3c)
- Regulate capacities of new or additional refineries and license new refineries. (Section 3d)
- Temporarily adjust petroleum product prices and require payments to the Oil Price Stabilization Fund in case of shortage or public interest. (Section 3e)
Reorganization and Transfer of Powers
- The Board of Energy is reconstituted into the ERB, and its powers and functions under R.A. 6173 are transferred to the ERB. (Section 4a)
- The regulatory and adjudicatory powers of the Bureau of Energy Utilization under P.D. 1206 are transferred to the ERB. (Section 4b)
- The power to fix rates for hauling and shipping/transporting petroleum products is transferred from the Land Transportation Commission to the ERB. (Section 5)
- Applicable funds, appropriations, records, equipment, property, and personnel shall be transferred to the ERB. (Section 5)
Other Powers and Procedures
- The ERB can promulgate rules and regulations, which take effect 15 days after publication in the Official Gazette. (Section 6)
- The ERB can punish for contempt with a fine up to ₱5,000 or imprisonment up to 30 days. (Section 7)
- The ERB can take depositions, authorize lawyers to hear cases, and grant provisional relief. (Sections 7-8)
- Decisions on continuing services or rate-fixing are immediately operative, while other decisions take effect 30 days after notice unless otherwise specified. (Section 9)
- Decisions of the ERB can be reviewed by the Supreme Court through a petition for review or writ of certiorari. (Section 10)
Other Provisions
- Employees laid off due to reorganization shall receive benefits under existing retirement laws or a separation pay equivalent to 1 month's salary per year of service, up to 12 months. (Section 11)
- The ERB shall coordinate with relevant agencies like the Department of Energy, NEDA, and NEA. (Section 12)
- Penalties for violations from previous laws like the Oil Industry Commission Act and Public Service Act shall apply to the ERB. (Section 13)
- Applicable provisions of previous laws like the Public Service Act and Oil Industry Commission Act shall continue to have full force and effect unless inconsistent with this Order. (Section 14)
- The ERB shall be under the administrative supervision of the Office of the President. (Section 15)
- Separability and repealing clauses are included. (Sections 16-17)
- The Executive Order takes effect immediately. (Section 18)
- An independent Energy Regulatory Board is created as the nucleus of the present Board of Energy. (Section 1)
- The ERB shall be composed of a Chairman and four Members appointed by the President, with the consent of the Commission on Appointments. (Section 1)
- The Chairman and Members must be natural-born Filipino citizens, at least 35 years old, and have recognized competence in relevant fields. (Section 1)
- The Chairman and Members shall have a term of 4 years, with term limits and staggered initial terms. (Section 1)
- The Chairman's compensation shall be equal to that of a Department Undersecretary, and Members shall receive compensation equal to the official next in rank to a Department Undersecretary. (Section 1)
- The ERB shall have an Executive Director, who shall be a member of the Philippine Bar with at least 5 years of experience, and other technical staff. (Section 2)
Powers and Functions of the ERB
- The ERB may regulate the business of importing, exporting, re-exporting, shipping, transporting, processing, refining, marketing, and distributing energy resources when public necessity requires. (Section 3)
- The ERB shall have the power to: (Section 3)
- Fix and regulate prices of petroleum products. (Section 3a)
- Fix and regulate rate schedules or prices of piped gas charged by franchised gas companies. (Section 3b)
- Fix and regulate rates of pipeline concessionaries under the Petroleum Act of 1949. (Section 3c)
- Regulate capacities of new or additional refineries and license new refineries. (Section 3d)
- Temporarily adjust petroleum product prices and require payments to the Oil Price Stabilization Fund in case of shortage or public interest. (Section 3e)
Reorganization and Transfer of Powers
- The Board of Energy is reconstituted into the ERB, and its powers and functions under R.A. 6173 are transferred to the ERB. (Section 4a)
- The regulatory and adjudicatory powers of the Bureau of Energy Utilization under P.D. 1206 are transferred to the ERB. (Section 4b)
- The power to fix rates for hauling and shipping/transporting petroleum products is transferred from the Land Transportation Commission to the ERB. (Section 5)
- Applicable funds, appropriations, records, equipment, property, and personnel shall be transferred to the ERB. (Section 5)
Other Powers and Procedures
- The ERB can promulgate rules and regulations, which take effect 15 days after publication in the Official Gazette. (Section 6)
- The ERB can punish for contempt with a fine up to ₱5,000 or imprisonment up to 30 days. (Section 7)
- The ERB can take depositions, authorize lawyers to hear cases, and grant provisional relief. (Sections 7-8)
- Decisions on continuing services or rate-fixing are immediately operative, while other decisions take effect 30 days after notice unless otherwise specified. (Section 9)
- Decisions of the ERB can be reviewed by the Supreme Court through a petition for review or writ of certiorari. (Section 10)
Other Provisions
- Employees laid off due to reorganization shall receive benefits under existing retirement laws or a separation pay equivalent to 1 month's salary per year of service, up to 12 months. (Section 11)
- The ERB shall coordinate with relevant agencies like the Department of Energy, NEDA, and NEA. (Section 12)
- Penalties for violations from previous laws like the Oil Industry Commission Act and Public Service Act shall apply to the ERB. (Section 13)
- Applicable provisions of previous laws like the Public Service Act and Oil Industry Commission Act shall continue to have full force and effect unless inconsistent with this Order. (Section 14)
- The ERB shall be under the administrative supervision of the Office of the President. (Section 15)
- Separability and repealing clauses are included. (Sections 16-17)
- The Executive Order takes effect immediately. (Section 18)