MDPPACPB Regulations

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(8) Regulatory Powers and Enforcement 
The Authority may, pursuant to sections 170, 205(2), 206, 207 and 212 of the Act: 
(a) conduct transfer pricing audits; 
(b) mandate functional or accounting separation between regulated and 
competitive activities; 
(c) require prior approval of intra-group pricing policies; 
(d) disallow improper cost transfers or hidden subsidies; 
(e) invalidate affected contracts or tariffs; 
(f) impose administrative fines or penalties under Parts XVI and XVII of these 
Regulations; 
(g) require adjustments to pricing practices, divestiture, or structural 
separation; and 
(h) refer matters to the Federal Competition and Consumer Protection 
Commission for joint investigation or enforcement. 
 
45 Code of Conduct for Affiliate Relations 
(1) Authority to Issue Code of Conduct 
The Authority may, by directive or guideline, issue a Code of Conduct for 
Affiliate Relations as a Schedule to this Regulation or as a separate binding 
instrument, setting out minimum governance, operational, and transparency 
standards for interactions between affiliated entities within integrated 
petroleum companies. 
 
(2) Purpose and Scope of the Code of Conduct 
 The Code shall be designed to: 
   (a) mitigate anti-competitive risks arising from vertical or horizontal 
integration; 
    (b) regulate internal transactions and governance between monopoly (e.g., 
pipeline, terminal) and competitive (e.g., retail, marketing) business units; 
    (c) prevent cross-subsidization and unfair leveraging of infrastructure control; 
   (d) ensure information firewalls, functional and management separation, 
and independent decision-making; 
    (e) guarantee fair and non-discriminatory access for third parties to shared 
infrastructure or services. 
(3) Mandatory Compliance with the Code of Conduct 
Every licensee that operates within an integrated structure or engages in intra-
group transactions across regulated and competitive segments shall: 
    (a) comply with the provisions of the Code upon its issuance or as 
subsequently updated; 
    (b) establish and maintain internal compliance protocols and reporting 
frameworks; 
    (c) designate a responsible officer or compliance unit to oversee adherence 
to the Code. 
(4) Publication of the Code of Conduct 
The Code shall be published on the official website of the Authority and may 
be incorporated into these Regulations as a Schedule.