Other tribunals and agencies

a. SEC – RA 8799, sec. 5

Section 5. Powers and Functions of the Commission.– 5.1. The commission shall act with

transparency and shall have the powers and functions provided by this code, Presidential

Decree No. 902-A, the Corporation Code, the Investment Houses law, the Financing Company

Act and other existing laws. Pursuant thereto the Commission shall have, among others, the

following powers and functions:

(a) Have jurisdiction and supervision over all corporations, partnership or associations who are

the grantees of primary franchises and/or a license or a permit issued by the Government;

(b) Formulate policies and recommendations on issues concerning the securities market, advise

Congress and other government agencies on all aspect of the securities market and propose

legislation and amendments thereto;

(c) Approve, reject, suspend, revoke or require amendments to registration statements, and

registration and licensing applications;

(d) Regulate, investigate or supervise the activities of persons to ensure compliance;

(e) Supervise, monitor, suspend or take over the activities of exchanges, clearing agencies and

other SROs;

(f) Impose sanctions for the violation of laws and rules, regulations and orders, and issued

pursuant thereto;

(g) Prepare, approve, amend or repeal rules, regulations and orders, and issue opinions and

provide guidance on and supervise compliance with such rules, regulation and orders;

(h) Enlist the aid and support of and/or deputized any and all enforcement agencies of the

Government, civil or military as well as any private institution, corporation, firm, association or

person in the implementation of its powers and function under its Code;

(i) Issue cease and desist orders to prevent fraud or injury to the investing public;

(j) Punish for the contempt of the Commission, both direct and indirect, in accordance with the

pertinent provisions of and penalties prescribed by the Rules of Court;

(k) Compel the officers of any registered corporation or association to call meetings of

stockholders or members thereof under its supervision;

(l) Issue subpoena duces tecum and summon witnesses to appear in any proceedings of the

Commission and in appropriate cases, order the examination, search and seizure of all

documents, papers, files and records, tax returns and books of accounts of any entity or person

under investigation as may be necessary for the proper disposition of the cases before it,

subject to the provisions of existing laws;

(m) Suspend, or revoke, after proper notice and hearing the franchise or certificate of

registration of corporations, partnership or associations, upon any of the grounds provided by

law; and

(n) Exercise such other powers as may be provided by law as well as those which may be

implied from, or which are necessary or incidental to the carrying out of, the express powers

granted the Commission to achieve the objectives and purposes of these laws.

5.2. The Commission’s jurisdiction over all cases enumerated under section 5 of Presidential

Decree No. 902-A is hereby transferred to the Courts of general jurisdiction or the appropriate

Regional Trial Court: Provided, That the Supreme Court in the exercise of its authority may

designate the Regional Trial Court branches that shall exercise jurisdiction over the cases. The

Commission shall retain jurisdiction over pending cases involving intra-corporate disputes

submitted for final resolution which should be resolved within one (1) year from the enactment of

this Code. The Commission shall retain jurisdiction over pending suspension of

payment/rehabilitation cases filed as of 30 June 2000 until finally disposed.

b. NLRC – PD 442 arts. 213-225

Title II

NATIONAL LABOR RELATIONS COMMISSION

Chapter I

CREATION AND COMPOSITION

Article 213. National Labor Relations Commission. There shall be a National Labor Relations

Commission which shall be attached to the Department of Labor and Employment for program

and policy coordination only, composed of a Chairman and fourteen (14) Members.

Five (5) members each shall be chosen from among the nominees of the workers and

employers organizations, respectively. The Chairman and the four (4) remaining members shall

come from the public sector, with the latter to be chosen from among the recommendees of the

Secretary of Labor and Employment.

Upon assumption into office, the members nominated by the workers and employers

organizations shall divest themselves of any affiliation with or interest in the federation or

association to which they belong.

The Commission may sit en banc or in five (5) divisions, each composed of three (3) members.

Subject to the penultimate sentence of this paragraph, the Commission shall sit en banc only for

purposes of promulgating rules and regulations governing the hearing and disposition of cases

before any of its divisions and regional branches, and formulating policies affecting its

administration and operations. The Commission shall exercise its adjudicatory and all other

powers, functions, and duties through its divisions. Of the five (5) divisions, the first, second and

third divisions shall handle cases coming from the National Capital Region and the parts of

Luzon; and the fourth and fifth divisions, cases from the Visayas and Mindanao, respectively;

Provided that the Commission sitting en banc may, on temporary or emergency basis, allow

cases within the jurisdiction of any division to be heard and decided by any other division whose

docket allows the additional workload and such transfer will not expose litigants to unnecessary

additional expense. The divisions of the Commission shall have exclusive appellate jurisdiction

over cases within their respective territorial jurisdictions. [As amended by Republic Act No.

7700].

The concurrence of two (2) Commissioners of a division shall be necessary for the

pronouncement of judgment or resolution. Whenever the required membership in a division is

not complete and the concurrence of two (2) commissioners to arrive at a judgment or resolution

cannot be obtained, the Chairman shall designate such number of additional Commissioners

from the other divisions as may be necessary.

The conclusions of a division on any case submitted to it for decision shall be reached in

consultation before the case is assigned to a member for the writing of the opinion. It shall be

mandatory for the division to meet for purposes of the consultation ordained herein. A

certification to this effect signed by the Presiding Commissioner of the division shall be issued

and a copy thereof attached to the record of the case and served upon the parties.

The Chairman shall be the Presiding Commissioner of the first division and the four (4) other

members from the public sector shall be the Presiding Commissioners of the second, third,

fourth and fifth divisions, respectively. In case of the effective absence or incapacity of the

Chairman, the Presiding Commissioner of the second division shall be the Acting Chairman.

The Chairman, aided by the Executive Clerk of the Commission, shall have administrative

supervision over the Commission and its regional branches and all its personnel, including the

Executive Labor Arbiters and Labor Arbiters.

The Commission, when sitting en banc shall be assisted by the same Executive Clerk and,

when acting thru its Divisions, by said Executive Clerks for the second, third, fourth and fifth

Divisions, respectively, in the performance of such similar or equivalent functions and duties as

are discharged by the Clerk of Court and Deputy Clerks of Court of the Court of Appeals. (As

amended by Section 5, Republic Act No. 6715, March 21, 1989)

Article 214. Headquarters, Branches and Provincial Extension Units. The Commission and its

First, Second and Third divisions shall have their main offices in Metropolitan Manila, and the

Fourth and Fifth divisions in the Cities of Cebu and Cagayan de Oro, respectively. The

Commission shall establish as many regional branches as there are regional offices of the

Department of Labor and Employment, sub-regional branches or provincial extension units.

There shall be as many Labor Arbiters as may be necessary for the effective and efficient

operation of the Commission. Each regional branch shall be headed by an Executive Labor

Arbiter. (As amended by Section 6, Republic Act No. 6715, March 21, 1989)

Article 215. Appointment and Qualifications. The Chairman and other Commissioners shall be

members of the Philippine Bar and must have engaged in the practice of law in the Philippines

for at least fifteen (15) years, with at least five (5) years experience or exposure in the field of

labor-management relations, and shall preferably be residents of the region where they are to

hold office. The Executive Labor Arbiters and Labor Arbiters shall likewise be members of the

Philippine Bar and must have been engaged in the practice of law in the Philippines for at least

seven (7) years, with at least three (3) years experience or exposure in the field of labor-

management relations: Provided, However, that incumbent Executive Labor Arbiters and Labor

Arbiters who have been engaged in the practice of law for at least five (5) years may be

considered as already qualified for purposes of reappointment as such under this Act. The

Chairman and the other Commissioners, the Executive Labor Arbiters and Labor Arbiters shall

hold office during good behavior until they reach the age of sixty-five years, unless sooner

removed for cause as provided by law or become incapacitated to discharge the duties of their

office.

The Chairman, the division Presiding Commissioners and other Commissioners shall be

appointed by the President, subject to confirmation by the Commission on Appointments.

Appointment to any vacancy shall come from the nominees of the sector which nominated the

predecessor. The Executive Labor Arbiters and Labor Arbiters shall also be appointed by the

President, upon recommendation of the Secretary of Labor and Employment and shall be

subject to the Civil Service Law, rules and regulations.

The Secretary of Labor and Employment shall, in consultation with the Chairman of the

Commission, appoint the staff and employees of the Commission and its regional branches as

the needs of the service may require, subject to the Civil Service Law, rules and regulations,

and upgrade their current salaries, benefits and other emoluments in accordance with law. (As

amended by Section 7, Republic Act No. 6715, March 21, 1989)

Article 216. Salaries, benefits and other emoluments. The Chairman and members of the

Commission shall receive an annual salary at least equivalent to, and be entitled to the same

allowances and benefits as those of the Presiding Justice and Associate Justices of the Court of

Appeals, respectively. The Executive Labor Arbiters shall receive an annual salary at least

equivalent to that of an Assistant Regional Director of the Department of Labor and Employment

and shall be entitled to the same allowances and benefits as that of a Regional Director of said

Department. The Labor Arbiters shall receive an annual salary at least equivalent to, and be

entitled to the same allowances and benefits as that of an Assistant Regional Director of the

Department of Labor and Employment. In no case, however, shall the provision of this Article

result in the diminution of existing salaries, allowances and benefits of the aforementioned

officials. (As amended by Section 8, Republic Act No. 6715, March 21, 1989)

Chapter II

POWERS AND DUTIES

Article 217. Jurisdiction of the Labor Arbiters and the Commission.

Except as otherwise provided under this Code, the Labor Arbiters shall have original and

exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of

the case by the parties for decision without extension, even in the absence of stenographic

notes, the following cases involving all workers, whether agricultural or non-agricultural:

Unfair labor practice cases;

Termination disputes;

If accompanied with a claim for reinstatement, those cases that workers may file involving

wages, rates of pay, hours of work and other terms and conditions of employment;

Claims for actual, moral, exemplary and other forms of damages arising from the employer-

employee relations;

Cases arising from any violation of Article 264 of this Code, including questions involving the

legality of strikes and lockouts; and

Except claims for Employees Compensation, Social Security, Medicare and maternity benefits,

all other claims arising from employer-employee relations, including those of persons in

domestic or household service, involving an amount exceeding five thousand pesos (P5,000.00)

regardless of whether accompanied with a claim for reinstatement.

The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor

Arbiters.

Cases arising from the interpretation or implementation of collective bargaining agreements and

those arising from the interpretation or enforcement of company personnel policies shall be

disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary

arbitration as may be provided in said agreements. (As amended by Section 9, Republic Act No.

6715, March 21, 1989)

Article 218. Powers of the Commission. The Commission shall have the power and authority:

To promulgate rules and regulations governing the hearing and disposition of cases before it

and its regional branches, as well as those pertaining to its internal functions and such rules and

regulations as may be necessary to carry out the purposes of this Code; (As amended by

Section 10, Republic Act No. 6715, March 21, 1989)

To administer oaths, summon the parties to a controversy, issue subpoenas requiring the

attendance and testimony of witnesses or the production of such books, papers, contracts,

records, statement of accounts, agreements, and others as may be material to a just

determination of the matter under investigation, and to testify in any investigation or hearing

conducted in pursuance of this Code;

To conduct investigation for the determination of a question, matter or controversy within its

jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto who

has been summoned or served with notice to appear, conduct its proceedings or any part

thereof in public or in private, adjourn its hearings to any time and place, refer technical matters

or accounts to an expert and to accept his report as evidence after hearing of the parties upon

due notice, direct parties to be joined in or excluded from the proceedings, correct, amend, or

waive any error, defect or irregularity whether in substance or in form, give all such directions as

it may deem necessary or expedient in the determination of the dispute before it, and dismiss

any matter or refrain from further hearing or from determining the dispute or part thereof, where

it is trivial or where further proceedings by the Commission are not necessary or desirable; and

To hold any person in contempt directly or indirectly and impose appropriate penalties therefor

in accordance with law.

A person guilty of misbehavior in the presence of or so near the Chairman or any member of the

Commission or any Labor Arbiter as to obstruct or interrupt the proceedings before the same,

including disrespect toward said officials, offensive personalities toward others, or refusal to be

sworn, or to answer as a witness or to subscribe an affidavit or deposition when lawfully

required to do so, may be summarily adjudged in direct contempt by said officials and punished

by fine not exceeding five hundred pesos (P500) or imprisonment not exceeding five (5) days,

or both, if it be the Commission, or a member thereof, or by a fine not exceeding one hundred

pesos (P100) or imprisonment not exceeding one (1) day, or both, if it be a Labor Arbiter.

The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission and

the execution of the judgment shall be suspended pending the resolution of the appeal upon the

filing by such person of a bond on condition that he will abide by and perform the judgment of

the Commission should the appeal be decided against him. Judgment of the Commission on

direct contempt is immediately executory and unappealable. Indirect contempt shall be dealt

with by the Commission or Labor Arbiter in the manner prescribed under Rule 71 of the Revised

Rules of Court; and (As amended by Section 10, Republic Act No. 6715, March 21, 1989)

To enjoin or restrain any actual or threatened commission of any or all prohibited or unlawful

acts or to require the performance of a particular act in any labor dispute which, if not restrained

or performed forthwith, may cause grave or irreparable damage to any party or render

ineffectual any decision in favor of such party: Provided, That no temporary or permanent

injunction in any case involving or growing out of a labor dispute as defined in this Code shall be

issued except after hearing the testimony of witnesses, with opportunity for cross-examination,

in support of the allegations of a complaint made under oath, and testimony in opposition

thereto, if offered, and only after a finding of fact by the Commission, to the effect:

That prohibited or unlawful acts have been threatened and will be committed and will be

continued unless restrained, but no injunction or temporary restraining order shall be issued on

account of any threat, prohibited or unlawful act, except against the person or persons,

association or organization making the threat or committing the prohibited or unlawful act or

actually authorizing or ratifying the same after actual knowledge thereof;

That substantial and irreparable injury to complainant’s property will follow;

That as to each item of relief to be granted, greater injury will be inflicted upon complainant by

the denial of relief than will be inflicted upon defendants by the granting of relief;

That complainant has no adequate remedy at law; and

That the public officers charged with the duty to protect complainant’s property are unable or

unwilling to furnish adequate protection.

Such hearing shall be held after due and personal notice thereof has been served, in such

manner as the Commission shall direct, to all known persons against whom relief is sought, and

also to the Chief Executive and other public officials of the province or city within which the

unlawful acts have been threatened or committed, charged with the duty to protect

complainant’s property: Provided, however, that if a complainant shall also allege that, unless a

temporary restraining order shall be issued without notice, a substantial and irreparable injury to

complainant’s property will be unavoidable, such a temporary restraining order may be issued

upon testimony under oath, sufficient, if sustained, to justify the Commission in issuing a

temporary injunction upon hearing after notice. Such a temporary restraining order shall be

effective for no longer than twenty (20) days and shall become void at the expiration of said

twenty (20) days. No such temporary restraining order or temporary injunction shall be issued

except on condition that complainant shall first file an undertaking with adequate security in an

amount to be fixed by the Commission sufficient to recompense those enjoined for any loss,

expense or damage caused by the improvident or erroneous issuance of such order or

injunction, including all reasonable costs, together with a reasonable attorney’s fee, and

expense of defense against the order or against the granting of any injunctive relief sought in

the same proceeding and subsequently denied by the Commission.

The undertaking herein mentioned shall be understood to constitute an agreement entered into

by the complainant and the surety upon which an order may be rendered in the same suit or

proceeding against said complainant and surety, upon a hearing to assess damages, of which

hearing, complainant and surety shall have reasonable notice, the said complainant and surety

submitting themselves to the jurisdiction of the Commission for that purpose. But nothing herein

contained shall deprive any party having a claim or cause of action under or upon such

undertaking from electing to pursue his ordinary remedy by suit at law or in equity: Provided,

further, That the reception of evidence for the application of a writ of injunction may be

delegated by the Commission to any of its Labor Arbiters who shall conduct such hearings in

such places as he may determine to be accessible to the parties and their witnesses and shall

submit thereafter his recommendation to the Commission. (As amended by Section 10,

Republic Act No. 6715, March 21, 1989)

Article 219. Ocular inspection. The Chairman, any Commissioner, Labor Arbiter or their duly

authorized representatives, may, at any time during working hours, conduct an ocular inspection

on any establishment, building, ship or vessel, place or premises, including any work, material,

implement, machinery, appliance or any object therein, and ask any employee, laborer, or any

person, as the case may be, for any information or data concerning any matter or question

relative to the object of the investigation.

Article 220. Compulsory arbitration. The Commission or any Labor Arbiter shall have the power

to ask the assistance of other government officials and qualified private citizens to act as

compulsory arbitrators on cases referred to them and to fix and assess the fees of such

compulsory arbitrators, taking into account the nature of the case, the time consumed in hearing

the case, the professional standing of the arbitrators, the financial capacity of the parties, and

the fees provided in the Rules of Court.] (Repealed by Section 16, Batas Pambansa Bilang 130,

August 21, 1981)

Article 221. Technical rules not binding and prior resort to amicable settlement. In any

proceeding before the Commission or any of the Labor Arbiters, the rules of evidence prevailing

in courts of law or equity shall not be controlling and it is the spirit and intention of this Code that

the Commission and its members and the Labor Arbiters shall use every and all reasonable

means to ascertain the facts in each case speedily and objectively and without regard to

technicalities of law or procedure, all in the interest of due process. In any proceeding before the

Commission or any Labor Arbiter, the parties may be represented by legal counsel but it shall

be the duty of the Chairman, any Presiding Commissioner or Commissioner or any Labor

Arbiter to exercise complete control of the proceedings at all stages.

Any provision of law to the contrary notwithstanding, the Labor Arbiter shall exert all efforts

towards the amicable settlement of a labor dispute within his jurisdiction on or before the first

hearing. The same rule shall apply to the Commission in the exercise of its original jurisdiction.

(As amended by Section 11, Republic Act No. 6715, March 21, 1989)

Article 222. Appearances and Fees.

Non-lawyers may appear before the Commission or any Labor Arbiter only:

If they represent themselves; or

If they represent their organization or members thereof.

No attorney’s fees, negotiation fees or similar charges of any kind arising from any collective

bargaining agreement shall be imposed on any individual member of the contracting union:

Provided, However, that attorney’s fees may be charged against union funds in an amount to be

agreed upon by the parties. Any contract, agreement or arrangement of any sort to the contrary

shall be null and void. (As amended by Presidential Decree No. 1691, May 1, 1980)

Chapter III

APPEAL

Article 223. Appeal. Decisions, awards, or orders of the Labor Arbiter are final and executory

unless appealed to the Commission by any or both parties within ten (10) calendar days from

receipt of such decisions, awards, or orders. Such appeal may be entertained only on any of the

following grounds:

If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;

If the decision, order or award was secured through fraud or coercion, including graft and

corruption;

If made purely on questions of law; and

If serious errors in the findings of facts are raised which would cause grave or irreparable

damage or injury to the appellant.

In case of a judgment involving a monetary award, an appeal by the employer may be perfected

only upon the posting of a cash or surety bond issued by a reputable bonding company duly

accredited by the Commission in the amount equivalent to the monetary award in the judgment

appealed from.

In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee,

insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending

appeal. The employee shall either be admitted back to work under the same terms and

conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely

reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for

reinstatement provided herein.

To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose

reasonable penalty, including fines or censures, upon the erring parties.

In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party

who shall file an answer not later than ten (10) calendar days from receipt thereof.

The Commission shall decide all cases within twenty (20) calendar days from receipt of the

answer of the appellee. The decision of the Commission shall be final and executory after ten

(10) calendar days from receipt thereof by the parties.

Any law enforcement agency may be deputized by the Secretary of Labor and Employment or

the Commission in the enforcement of decisions, awards or orders. (As amended by Section 12,

Republic Act No. 6715, March 21, 1989)

Article 224. Execution of decisions, orders or awards.

The Secretary of Labor and Employment or any Regional Director, the Commission or any

Labor Arbiter, or Med-Arbiter or Voluntary Arbitrator may, motu proprio or on motion of any

interested party, issue a writ of execution on a judgment within five (5) years from the date it

becomes final and executory, requiring a sheriff or a duly deputized officer to execute or enforce

final decisions, orders or awards of the Secretary of Labor and Employment or regional director,

the Commission, the Labor Arbiter or med-arbiter, or voluntary arbitrators. In any case, it shall

be the duty of the responsible officer to separately furnish immediately the counsels of record

and the parties with copies of said decisions, orders or awards. Failure to comply with the duty

prescribed herein shall subject such responsible officer to appropriate administrative sanctions.

The Secretary of Labor and Employment, and the Chairman of the Commission may designate

special sheriffs and take any measure under existing laws to ensure compliance with their

decisions, orders or awards and those of the Labor Arbiters and voluntary arbitrators, including

the imposition of administrative fines which shall not be less than P500.00 nor more than

P10,000.00. (As amended by Section 13, Republic Act No. 6715, March 21, 1989)

Article 225. Contempt powers of the Secretary of Labor. In the exercise of his powers under

this Code, the Secretary of Labor may hold any person in direct or indirect contempt and impose

the appropriate penalties therefor.

c. Insurance Commission – PD 612, sec. 414-416

Chapter VIII

THE INSURANCE COMMISSIONER

Title 1

ADMINISTRATIVE AND ADJUDICATORY POWERS

Section 414. The Insurance Commissioner shall have the duty to see that all laws relating to

insurance, insurance companies and other insurance matters, mutual benefit associations, and

trusts for charitable uses are faithfully executed and to perform the duties imposed upon him by

this Code, and shall, notwithstanding any existing laws to the contrary, have sole and exclusive

authority to regulate the issuance and sale of variable contracts as defined in section two

hundred thirty-two and to provide for the licensing of persons selling such contracts, and to

issue such reasonable rules and regulations governing the same.

The Commissioner may issue such ruling, instructions, circulars, orders and decision as he may

deem necessary to secure the enforcement of the provisions of this Code, subject to the

approval of the Secretary of Finance. Except as otherwise specified, decisions made by the

Commissioner shall be appealable to the Secretary of Finance.

Section 415. In addition to the administrative sanctions provided elsewhere in this Code, the

Insurance Commissioner is hereby authorized, at his discretion, to impose upon the insurance

companies, their directors and/or officers and/or agents, for any willful failure or refusal to

comply with, or violation of any provision of this Code, or any order, instruction, regulation, or

ruling of the Insurance Commissioner, or any commission or irregularities, and/or conducting

business in an unsafe or unsound manner as may be determined by the Insurance

Commissioner, the following:

(a) fines not in excess of five hundred pesos a day; and

(b) suspension, or after due hearing, removal of directors and/or officers and/or agents.

Section 416. The Commissioner shall have the power to adjudicate claims and complaints

involving any loss, damage or liability for which in insurer may be answerable under any kind of

policy or contract of insurance, or for which such insurer may be liable under a contract of

suretyship, or for which a reinsurer may be sued under any contract of reinsurance it may have

entered into; or for which a mutual benefit association may be held liable under the membership

certificates it has issued to its members, where the amount of any such loss, damage or liability,

excluding interest, cost and attorney's fees, being claimed or sued upon any kind of insurance,

bond, reinsurance contract, or membership certificate does not exceed in any single claim one

hundred thousand pesos.

The insurer or surety may, in the same action file a counterclaim against the insured or the

obligee.

The insurer or surety may also file a cross-claim against a party for any claim arising out of the

transaction or occurrence that is the subject matter of the original action or of a counterclaim

therein.

With leave of the Commissioner, an insurer or surety may file a third-party complaint against its

reinsurers for indemnification, contribution, subrogation or any other relief, in respect of the

transaction that is the subject matter of the original action filed with the Commissioner.

The party filing an action pursuant to the provisions of this section thereby submits his person to

the jurisdiction of the Commissioner. The Commissioner shall acquire jurisdiction over the

person of the impleaded party or parties in accordance with and pursuant to the provisions of

the Rules of Court.

The authority to adjudicate granted to the Commissioner under this section shall be concurrent

with that of the civil courts, but the filing of a complaint with the Commissioner shall preclude the

civil courts from taking cognizance of a suit involving the same subject matter.

Any decision, order or ruling rendered by the Commissioner after a hearing shall have the force

and effect of a judgment. Any party may appeal from a final order, ruling or decision of the

Commissioner by filing with the Commissioner within thirty days from receipt of copy of such

order, ruling or decision a notice of appeal and with the Supreme Court twelve printed or

mimeographed copies of a petition for certiorari or review of such order, ruling or decision, as

the case may be. A copy of the petition shall be served upon the Commissioner and upon the

adverse party, and proof of service thereof attached to the original of the petition.

As soon as a decision, order or ruling has become final and executory, the Commissioner shall

motu propio or on motion of the interested party, issue a writ of execution required the sheriff or

the proper officer to whom it is directed to execute said decision, order or award, pursuant to

Rule thirty-nine of the Rules of Court.

For the purpose of any proceeding under this section, the Commissioner, or any officer thereof

designated by him, empowered to administer oaths and affirmation, subpoena witnesses,

compel their attendance, take evidence, and require the production of any books, papers,

documents, or contracts or other records which are relevant or material to the inquiry. In case of

contumacy by, or refusal to obey a subpoena issued to any person, the Commissioner may

invoke the aid of any court of first instance within the jurisdiction of which such proceeding is

carried on, where such person resides or carries on his own business, in requiring the

attendance and testimony of witnesses and the production of books, papers, documents,

contracts or other records. And such court may issue an order requiring such person to appear

before the Commissioner, or officer designated by the Commissioner, there to produce records,

if so ordered or to give testimony touching the matter in question. Any failure to obey such order

of the court may be published by such court as a contempt thereof.

A full and complete record shall be kept of all proceedings had before the commissioner, or the

officers thereof designated by him, and all testimony shall be taken down and transcribed by a

stenographer appointed by the Commissioner.

A transcribed copy of the evidence and proceeding, or any specific part thereof, of any hearing

taken by a stenographer appointed by the Commissioner, being certified by such stenographer

to be a true and correct transcript of the testimony on this hearing of a particular witness, or of a

specific proof thereof, carefully compared by him from his original notes, and to be a correct

statement of evidence and proceeding had in such hearing so purporting to be taken and

subscribed, may be received as evidence by the Commissioner and by any court with the same

effect as if such stenographer were present and testified to the facts so certified. (As amended

by Presidential Decree No. 1455)

d. Energy Regulatory Commission – RA 9136, secs. 38, 41, 43-46

SEC. 38. Creation of the Energy Regulatory Commission. There is hereby created an

independent, quasi-judicial regulatory body to be named the Energy Regulatory Commissions

(ERC). For this purpose, the existing Energy Regulatory Board (ERB) created under Executive

Order No. 172, as amended, is hereby abolished. The Commission shall be composed of a

Chairman and four (4) members to be appointed by the President of the Philippines. The

Chairman and the members of the Commission shall be natural-born citizens and residents of

the Philippines, persons of good moral character, at least thirty-five (35) years of age, and of

recognized competence in any of the following fields: energy, law, economics, finance,

commerce, or engineering, with at least three (3) years actual and distinguished experience in

their respective fields of expertise: Provided, That out of the four (4) members of the

Commission, at least one (1) shall be a member of the Philippine Bar with at least ten (10) years

experience in the active practice of law, and one (1) shall be a certified public accountant with at

least ten (10) years experience in active practice. Within three (3) months from the creation of

the ERC, the Chairman shall submit for the approval by the President of the Philippines the new

organizational structure and plantilla positions necessary to carry out the powers and functions

of the ERC. The Chairman of the Commission, who shall be a member of the Philippine Bar,

shall act as the Chief Executive Officer of the Commission. All members of the Commission

shall have a term of seven (7) years: Provided, That for the first appointees, the Chairman shall

hold office for seven (7) years, two (2) members shall hold office for five (5) years and the other

two (2) members shall hold office for three (3) years; Provided, further, That appointment to any

future vacancy shall only be for the unexpired term of the predecessor: Provided, finally, That

there shall be no reappointment and in no case shall any member serve for more than seven (7)

years in the Commission. The Chairman and members of the Commission shall assume office

of the beginning of their terms: Provided, That, if upon the effectivity of this Act, the Commission

has not been constituted and the new staffing pattern and plantilla positions have not been

approved and filled-up, the current Board and existing personnel of ERB shall continue to hold

office. The existing personnel of the ERB, if qualified, shall be given preference in the filling up

of plantilla positions created in the ERC, subject to existing civil service rules and regulations.

Members of the Commission shall enjoy security of tenure and shall not be suspended or

removed from office except for just cause as specified by law. The Chairman and members of

the Commission or any of their relatives within the fourth civil degree of consanguinity or affinity,

legitimate or common law, shall be prohibited from holding any interest whatsoever, either as

investor, stockholder, officer or director, in any company or entity engaged in the business of

transmitting, generating, supplying or distributing any form of energy and must, therefore, divest

through sale or legal disposition of any and all interests in the energy sector upon assumption of

office. The presence of at least three (3) members of the Commission shall constitute a quorum

and the majority vote of two (2) members in a meeting where a quorum is present shall be

necessary for the adoption of any rule, ruling, order, resolution, decision, or other act of the

Commission in the exercise of its quasi-judicial functions: Provided, That in fixing rates and

tariffs, an affirmative vote of three (3) members shall be required.

SEC. 41. Promotion of Consumer Interests. – The ERC shall handle consumer complaints and

ensure the adequate promotion of consumer interests.

SEC. 43. Functions of the ERC. –The ERC shall promote competition, encourage market

development, ensure customer choice and penalize abuse of market power in the restructured

electricity industry. In appropriate cases, the ERC is authorized to issue cease and desist order

after due notice and hearing. Towards this end, it shall be responsible for the following key

functions in the restuctured industry: (a) Enforce the implementing rules and regulations of this

Act;

(b) Within six (6) months from the effectivity of this Act, promulgate and enforce, in accordance

with law, a National Grid Code and a Distribution Code which shall include, but not limited to,

the following: (i) Performance standards for TRANSCO O & M Concessionaire, distribution

utilities and suppliers: Provided, That in the establishment of the performance standards, the

nature and function of the entities shall be considered; and (ii) Financial capability standards for

the generating companies, the TRANSCO, distribution utilities and suppliers: Provided, further,

That such standards are set to ensure that the electric power industry participants meet the

minimum financial standards to protect the public interest. Determine, fix, and approve, after

due notice and public hearings the universal charge, to be imposed on all electricity end-users

pursuant to Section 34 hereof.

(c) Enforce the rules and regulations governing the operations of the electricity spot market and

the activities of the spot market operator and other participants in the spot market, for the

purpose of ensuring a greater supply and rational pricing of electricity;

(d) Determine the level of cross subsidies in the existing retail rate until the same is removed

pursuant to Section 74 hereof;

(e) Amend or revoke, after due notice and hearing, the authority to operate of any person or

entity which fails to comply with the provisions hereof, the IRR or any order or resolution of the

ERC. In the event a divestment is required, the ERC shall allow the affected party sufficient time

to remedy the infraction or for an orderly disposal, but in no case exceed twelve (12) months

from the issuance of the order;

(f) In the public interest, establish and enforce a methodology for setting transmission and

distribution wheeling rates and retail rates for the captive market of a distribution utility, taking

intro account all relevant considerations, including the efficiency or inefficiency of the regulated

entities. The rates must be such as to allow the recovery of just and reasonable costs and a

reasonable return on rate base (RORB) to enable the entity to operate viably. The ERC may

adopt alternative forms of internationally-accepted rate-setting methodology as it may deem

appropriate. The rate-setting methodology so adopted and applied must ensure a reasonable

price of electricity. The rates prescribed shall be non-discriminatory. To achieve this objective

and to ensure the complete removal of cross subsidies, the cap on the recoverable rate of

system losses prescribed in Section 10 of Republic Act No. 7832, is hereby amended and shall

be replaced by caps which shall be determined by the ERC based on load density, sales mix,

cost of service, delivery voltage and other technical considerations it may promulgate. The ERC

shall determine such form or rate-setting methodology, which shall promote efficiency. In case

the rate setting methodology used is RORB, it shall be subject to the following guidelines: (i) For

purposes of determining the rate base, the TRANSCO or any distribution utility may be allowed

to revalue its eligible assets not more than once every three (3) years by an independent

appraisal company: Provided, however, That ERC may give an exemption in case of unusual

devaluation: Provided, further, That the ERC shall exert efforts to minimize price shocks in order

to protect the consumers; (ii) Interest expenses are not allowable deductions from permissible

return on rate base; (iii) In determining eligible cost of services that will be passed on to the end-

users, the ERC shall establish minimum efficiency performance standards for the TRANSCO

and distribution utilities including systems losses, interruption frequency rates, and collection

efficiency; (iv) Further, in determining rate base, the TRANSCO or any distribution utility shall

not be allowed to include management inefficiencies like cost of project delays not excused by

force majeure, penalties and related interest during construction applicable to these unexcused

delays; and (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.

(g) Three (3) years after the imposition of the universal charge, ensure that the charges of the

TRANSCO or any distribution utility shall bear no cross subsidies between grids, within grids, or

between classes of customers, except as provided herein;

(h) Review and approve any changes on the terms and conditions of service of the TRANSCO

or any distribution utility;

(i) Allow the TRANSCO to charge user fees for ancillary services to all electric power industry

participants or self-generating entities connected to the grid. Such fees shall be fixed by the

ERC after due notice and public hearing;

(j) Set a lifeline rate for the marginalized end-users;

(k) Monitor and take measures in accordance with this Act to penalize abuse of market power,

cartelization, and anti-competitive or discriminatory behavior by any electric power industry

participant;

(l) Impose fines or penalties for any non-compliance with or breach of this Act, the IRR of this

Act and the rules and regulations which it promulgates or administers;

(m) Take any other action delegated to it pursuant to this Act;

(n) Before the end of April of each year, submit to the Office of the President of the Philippines

and Congress, copy furnished the DOE, an annual report containing such matters or cases

which have been filed before or referred to it during the preceding year, the actions and

proceedings undertaken and its decision or resolution in each case. The ERC shall make copies

of such reports available to any interested party upon payment of a charge which reflects the

printing costs. The ERC shall publish all its decisions involving rates and anticompetitive cases

in at least one (1) newspaper of general circulation, and/or post electronically and circulate to all

interested electric power industry participants copies of its resolutions to ensure fair and

impartial treatment;

(o) Monitor the activities in the generation and supply of the electric power industry with the end

in view of promoting free market competition and ensuring that the allocation or pass through of

bulk purchase cost by distributors is transparent, non-discriminatory and that any existing

subsidies shall be divided pro-rata among all retail suppliers;

(p) Act on applications for or modifications of certificates of public convenience and/or necessity,

licenses or permits of franchised electric utilities in accordance with law and revoke, review and

modify such certificates, licenses or permits in appropriate cases, such as in cases of violations

of the Grid Code, Distribution Code and other rules and regulations issued by the ERC in

accordance with law;

(q) Act on applications for cost recovery and return on demand side management projects;

(r) In the exercise of its investigative and quasi-judicial powers, act against any participant or

player in the energy sector for violations of any law, rule and regulation governing the same,

including the rules on cross-ownership, anti-competitive practices, abuse of market positions

and similar or related acts by any participant in the energy sector or by any person, as may be

provided by law, and require any person or entity to submit any report or data relative to any

investigation or hearing conducted pursuant to this Act;

(s) Inspect, on its own or through duly authorized representatives, the premises, books of

accounts and records of any person or entity at any time, in the exercise of its quasi-judicial

power for purposes of determining the existence of any anti-competitive behavior and/or market

power abuse and any violation of rules and regulations issued by the ERC;

(t) Perform such other regulatory functions as are appropriate and necessary in order to ensure

the successful restructuring and modernization of the electric power industry, such as, but not

limited to, the rules and guidelines under which generation companies, distribution utilities which

are not publicly listed shall offer and sell to the public a portion not less than fifteen percent

(15%) of their common shares of stocks: Provided, however, That generation companies,

distribution utilities or their respective holding companies that are already listed in the PSE are

deemed in compliance. For existing companies, such public offering shall be implemented not

later than five (5) years from the effectivity of this Act. New companies shall implement their

respective public offerings not later than five (5) years from the issuance of their certificate of

compliance; and

(u) The ERC shall have the original and exclusive jurisdiction over all cases contesting rates,

fees, fines and penalties imposed by the ERC in the exercise of the above mentioned powers,

functions and responsibilities and over all cases involving disputes between and among

participants or players in the energy sector. All notices of hearings to be conducted by the ERC

for the purpose of fixing rates or fees shall be published at least twice for two successive weeks

in two (2) newspapers of nationwide circulation.

SEC. 44. Transfer of Powers and Functions. – The powers and functions of the Energy

Regulatory Board not inconsistent with the provisions of this Act are hereby transferred to the

ERC. The foregoing transfer of powers and functions shall include all applicable funds and

appropriations, records, equipment, property and personnel as may be necessary.

SEC. 45. Cross Ownership, Market Power Abuse and Anti-Competitive Behavior. – No

participant in the electricity industry or any other person may engage in any anti-competitive

behavior including, but not limited to, cross-subsidization, price or market manipulation, or other

unfair trade practices detrimental to the encouragement and protection of contestable markets.

No generation company, distribution utility, or its respective subsidiary or affiliate or stockholder

or official of a generation company or distribution utility, or other entity engaged in generating

and supplying electricity specified by ERC within the fourth civil degree of consanguinity or

affinity, shall be allowed to hold any interest, directly or indirectly, in TRANSCO or its

concessionaire. Likewise, the TRANSCO, or its concessionaire or any of its stockholders or

officials or any of their relatives within the fourth civil degree of consanguinity or affinity, shall not

hold any interest, whether directly or indirectly, in any generation company or distribution utility.

Except for ex officio government-appointed representatives, no person who is an officer or

director of the TRANSCO or its concessionaire shall be an officer or director of any generation

company, distribution utility or supplier. An “affiliate” means any person which, alone or together

with any other person, directly or indirectly, through one or more intermediaries, controls, is

controlled by, or is under common control with another person. As used herein, “control” shall

mean the power to direct or cause the direction of the management policies of a person by

contract, agency or otherwise. To promote true market competition and prevent harmful

monopoly and market power abuse, the ERC shall enforce the following safeguards: (a) No

company or related group can own, operate or control more than thirty percent (30%) of the

installed generating capacity of a grid and/or twenty-five percent (25%) of the national installed

generating capacity. “Related group” includes a person’s business interests, including its

subsidiaries, affiliates, directors or officers or any of their relatives by consanguinity or affinity,

legitimate or common law, within the fourth civil degree; (b) Distribution utilities may enter into

bilateral power supply contracts subject to review by the ERC: Provided, That such review shall

only be required for distribution utilities whose markets have not reached household demand

level. For the purpose of preventing market power abuse between associated firms engaged in

generation and distribution, no distribution utility shall be allowed to source from bilateral power

supply contracts more than fifty percent (50%) of its total demand from an associated firm

engaged in generation but such limitation, however, shall not prejudice contracts entered into

prior to the effectivity of this Act. An associated firm with respect to another entity refers to any

person which, alone or together with any other person, directly or indirectly, through one or

more intermediaries, controls, is controlled by, or is under common control with, such entity; and

(c) For the first five (5) years from the establishment of the wholesale electricity spot market, no

distribution utility shall source more than ninety percent (90%) of its total demand from bilateral

power supply contracts. For purposes of this Section, the grid basis shall consist of three (3)

separate grids, namely Luzon, Visayas and Mindanao. The ERC shall have the authority to

modify or amend this definition of a grid when two or more of the three separate grids become

sufficiently interconnected to constitute a single grid or as conditions may otherwise permit.

Exceptions from these limitations shall be allowed for isolated grids that are not connected to

the high voltage transmission system. Except as otherwise provided for in this Section, any

restriction on ownership and/or control between or within sectors of the electricity industry may

be imposed by ERC only insofar as the enforcement of the provisions of this Section is

concerned. The ERC shall, within one (1) year from the effectivity of this Act., promulgate rules

and regulations to ensure and promote competition, encourage market development and

customer choice and discourage/penalize abuse of market power, cartelization and any anti-

competitive or discriminatory behavior, in order to further the intent of this Act and protect the

public interest. Such rules and regulations shall define the following: (a) the relevant markets for

purposes of establishing abuse or misuse of monopoly or market position; (b) areas of isolated

grids; and (c) the periodic reportorial requirements of electric power industry participants as may

be necessary to enforce the provisions of this Section. The ERC shall, motu proprio, monitor

and penalize any market power abuse or anti-competitive or discriminatory act or behavior by

any participant in the electric power industry. Upon finding that a market participant has

engaged in such act or behavior, the ERC shall stop and redress the same. Such remedies

shall, without limitation, include the imposition of price controls, issuance of injunctions,

requirement of divestment or disgorgement of excess profits and imposition of fines and

penalties pursuant to this Act. The ERC shall, within one (1) year from the effectivity of this Act,

promulgate rules and regulations providing for a complaint procedure that, without limitation,

provides the accused party with notice and an opportunity to be heard.

SEC. 46. Fines and Penalties. – The fines and penalties that shall be imposed by the ERC for

any violation of or non-compliance with this Act or the IRR shall range from a minimum of fifty

thousand pesos (P50,000.00) to a maximum of Fifty million pesos (P50,000,000.00). Any

person who is found guilty of any of the prohibited acts pursuant to Section 45 hereof shall

suffer the penalty of prision mayor and fine ranging from Ten thousand pesos (P10,000.00) to

Ten million pesos (P10,000,000.00), or both, at the discretion of the court. The members of the

Board of Directors of the juridical companies participating in or covered in the generation

companies, the distribution utilities, the TRANSCO or its concessionaire or supplier who violate

the provisions of this Act may be fined by an amount not exceeding double the amount of

damages caused by the offender or by imprisonment of one (1) year or two (2) years or both at

the discretion of the court. This rule shall apply to the members of the Board who knowingly or

by neglect allows the commission or omission under the law. If the offender is a government

official or employee, he shall, in addition, be dismissed from the government service with

prejudice to reinstatement and with perpetual or temporary disqualification from holding any

elective or appointive office. If the offender is an alien, he may, in addition to the penalties

prescribed, be deported without further proceedings after service of sentence. Any case which

involves question of fact shall be appealable to the Court of Appeals and those which involve

question of law shall be directly appealable to the Supreme Court. The administrative sanction

that may be imposed by the ERC shall be without prejudice to the filing of a criminal action, if

warranted. To ensure compliance with this Act, the penalty of prision correccional or a fine

ranging from Five thousand pesos (P5,000.00) to Five million pesos (P5,000,000.00), or both, at

the discretion of the court, shall be imposed on any person, including but not limited to the

president, member of the Board, Chief Executive Officer or Chief Operating Officer of the

corporation, partnership, or any other entity involved, found guilty of violating or refusing to

comply with any provision of this Act or its IRR, other than those provided herein. Any party to

an administrative proceeding may, at any time, make an offer to the ERC, conditionally or

otherwise, for a consented decree, voluntary compliance or desistance and other settlement of

the case. The offer and any or all of the ultimate facts upon which the offer is based shall be

considered for settlement purposes only and shall not be used as evidence against any party for

any other purpose and shall not constitute an admission by the party making the offer of any

violation of the laws, rules, regulations, orders and resolutions of the ERC, nor as a waiver to file

any warranted criminal actions. In addition, Congress may, upon recommendation of the DOE

and/or ERC, revoke such franchise or privilege granted to the party who violated the provisions

of this Act.