Unbundling  of rates is based on Section 36 of the Republic Act  9136 or the Electric Power  Industry Reform Act  (EPIRA) of 2001 which took effect last June 26, 2001. This paved the way to a greater accountability in the power industry as well as transparency for the consumers to know where their peso goes.

As directed by the ERC, the utilities will be implementing the new rates immediately, beginning with the June 2003 billing cycle.

Thus, by unbundling it became easier for  consumers  to see how much of your payment goes to the utility and how much goes to ‘pass - through’ charges, or charges that the distribution utility collects on behalf of the government and power suppliers or power generating firms