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 Commissions 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 labormanagement 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 employeremployee 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 complainants 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 complainants 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
complainants 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
complainants 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 attorneys 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 attorneys 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 attorneys 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 endusers, 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 persons 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 anticompetitive 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.