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RA 12120 CHAPTER IV

Section 27–32 · 6 provisions

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.Read the official text ↗

PDNG Transmission and Distribution System and Related Facilities.

Section 27

SEC. 27. PDNG Transmission and Distribution System and Related Facilities. - The DOE shall issue a license or authorization to Permit Holders of PDNG transmission and distribution systems for the purpose of ensuring safe, efficient, and reliable infrastructure and facilities.

Cross-Ownership.

Section 28

SEC. 28. Cross-Ownership. - An entity may hold an interest in the ownership of upstream and downstream natural gas facilities, as well as the supply and aggregation of natural gas to gas buyers subject to legal prohibitions on anti-competitive acts. Such ownership shall be allowed for operational and financial feasibility considerations, subject to the powers and responsibilities of the PCC under Section 14 of this Act. The PCC shall review compliance with Republic Act No. 10667, specifically to prevent substantial lessening of competition, while the DOE shall review the impact on energy security, the cost of electricity, market-stability, and any other matters concerning the PEP. The DOE shall apply relevant laws and regulations to ensure that public interest is protected.

Own-Use.

Section 29

SEC. 29. Own-Use. - The Own-Use Permit Holder shall utilize its entire capacity exclusively for its own use and shall not be allowed to enter into TPA arrangements, unless approved by the DOE. The DOE's approval shall specify the standards and limitations thereof. The DOE may allow the use of a third party, if necessary, to address any issue on the availability of LNG supply which may arise. The DOE shall provide the rules and limitations on the participation of Own-Use Permit Holders in TPA arrangements, taking into account energy security and consumer welfare.

Third-Party Access.

Section 30

SEC. 30. Third-Party Access. - A TPA Permit Holder shall utilize its entire capacity exclusively for TPA and shall not be allowed to utilize any such capacity for Own-Use, unless approved by the DOE. The DOE's approval shall specify the standards and limitations thereof. The DOE may allow a TPA Permit Holder to utilize its capacity for Own-Use, if necessary, to address any issue on the availability of LNG supply which may arise. The DOE shall provide the rules and limitations on the utilization of TPA Permit Holders' capacity for Own-Use, taking into account energy security and consumer welfare. The TPA Permit Holder shall submit a regular report on the total capacity, along with all relevant details, to the DOE for monitoring.

Third-Party Access Principles.

Section 31

SEC. 31. Third-Party Access Principles. - Adherence to the principles of transparency, non-discrimination, and safe practices is the key to the beneficial participation of third-party users. In line with this, the following guiding principles shall be observed: (a) The TPA shall be transparent, fair, reasonable, and non-discriminatory with regard to the rates and access to services for the purpose of enhancing efficiency and optimization of capacity to avoid overcapacity and encourage necessary investments in the PDNGI; (b) The TPA shall encourage a diverse and sustainable market for natural gas beyond the power sector; (c) The TPA shall be anchored on a safe, secure, reliable, and efficient operation for both the Permit Holder and the third-party users; and (d) The TPA Permit Holders shall conduct an open, transparent, and sufficient consultation process with both existing and potential third-party users to discuss the available capacity; and (e) The TPA Permit Holders shall regularly publish their available capacity, access terms and conditions, and rates which shall be available to the public, and allow the review and inspection of their facilities and records for verification.

Congestion Management.

Section 32

SEC. 32. Congestion Management. - Whenever a TPA Permit Holder is no longer able to use or has not released the capacity without justifiable reason, the DOE shall have the authority to direct its release.

Back to RA 12120 — full text

Provisions on this page are reproduced verbatim from official open data. See the attribution line.

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).