WHEREAS, one of the primary concerns of the
government in promoting the economic welfare of the people is to hasten
the electrification of the entire country, more particularly the rural
area; and
WHEREAS, it is necessary to establish basic policies for the attainment
of said objective;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
general Order No. 1, dated September 22, 1972, do hereby order and
decree, as part of the law of the land, the following basic policies
for the electric power industry: chanroblesvirtualawlibrary
1. The attainment of total electrification on an area
coverage basis, which is a declared policy of the State, shall be
effected primarily through:cralaw:red
a) The setting up of island grids with
central/linked-up generation facilities.
b) The setting up of cooperatives for distribution of
power.
2. The setting up of transmission line grids and the
construction of associated generation facilities in Luzon, Mindanao and
major islands of the country, including the Visayas, shall be the
responsibility of the National Power Corporation (NPC) as the
authorized implementing agency of the State.
(a) Plant additions necessary to meet the increase in
power demand of the area embraced by any grid set up by the NPC shall
be constructed and owned by the NPC.
(b) In areas not embraced by the NPC grid, the State
shall permit cooperatives, private utilities and local governments to
own and operate isolated grids and generation facilities, subject to
State regulation.
3. The distribution of electric power by the NPC
shall be undertaken by:cralaw:red
a) Cooperatives
b) Private utilities
c) Local governments
d) Other entities duly authorized subject to state
regulation
4. Within the area embraced by a grid set up by the
NPC, the State shall determine privately-owned generating facilities
which should be permitted to remain in operation.
5. It is the ultimate objective of the State for the
NPC to own and operate as a single integrated system all generating
facilities supplying electric power to the entire area embraced by any
grid set up by the NPC. chanroblesvirtualawlibrary
6. The Power Development Council shall be expanded
and strengthened to make it more effective in the planning and
implementation of power and electrification projects and in the
re-direction of re-orientation of the various sectors of the industry
towards national development goals.
Done in the City of Manila,
this 7th day of November, in the year of Our Lord, nineteen hundred and
seventy-two.
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