Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
Second Regular Session

6173

HOUSE BILL No.

Introduced by Rep. TEDDY A. CASINO

EXPLANATORY NOTE

‘This bill seeks to amend the failed policy known as the Electric Power Industry Reform Act
(EPIRA) in light of the raging power crisis in Mindanao and the long-term vision that the
vital power industry should not be left to the vagaries of private interests to the detriment of
our country’s national development requirements.

‘As of 2011, the Philippines had the highest cost of electricity in Asia with an average retail
rate of 18.1 US cents per kilowatt-hour, easing out Japan that had 17.9 US centers per
kilowatt-hour.

The latest available comparative data from the from 18"EPIRA Implementation Status
Report show that Mindanao has effective residential electricity rates of P6.69 per kilowatt-
hour (kWh). Luzon has P9.84 per kWh and Visayas has P8.19 per kWh. Except for
CARAGA, all the Mindanao regions have more expensive residential power rates than Hong
Kong SAR. These regions, including Cotabato City, Iligan City, SOCCKSARGEN, and the
‘Zamboanga Peninsula all have higher residential rates than major Asian capitals like Taipei,
Kuala Lumpur, Jakarta, New Delhi, Bangkok, and Shanghai, among others. All in all,
Mindanao is paying an average of P1.82 per kWh more for electricity than the 31 major cities
in Asia and Oceania as surveyed by the Japan External Trade Organization JETRO).

‘The premise that Mindanao has been unjustifiably enjoying “cheap” power rates is totally
wrong. True, Mindanao has lower power rates than Luzon and the Visayas. But Mindanao is
actually paying much more than most major cities in Asia. It is a sad fact that reside:
consumers in Cagayan de Oro City, the Autonomous Region in Muslim Mindanao (ARMM),
Northern Mindanao, and the Davao and CARAGA regions are paying twice the electricity
rates of residents in Seoul and Beijing.

It will be wrong for government to fully let go to private hands the vital power generation
sector. It will doubly wrong for government to side with private power firms who want high
prices instead of consumers and investors who want low electricity rates.


Itis important to note that these generation assets have continually reaped dividends for the
government and the people and will continue to do so in the long-term. It is high time to put
a stop to the privatization of state power assets — particularly the remaining assets still in
government hands to help keep power rates stable and to keep what should be kept in state
hands for the benefit of the Filipino people.

In view of the foregoing, approval of this bill is earnestly sought.
Approved,

hereBy & char

Bayan Muna Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

6173

HOUSE BILL No.

Introduced by Reps. TEDDY A. CASINO and NERI JAVIER COLMENARES

AN ACT
TO ADDRESS THE WORSENING STATE OF THE POWER INDUSTRY IN
‘THE PHILIPPINES, AMENDING FOR THE PURPOSE SECTION 47 OF
REPUBLIC ACT NO. 9136, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title - This Act shall be known as the “Power Asset
of 2012.”

ts Retention Act

SECTION 2. Amendment - Section 47 of Republic Act No. 9136, otherwise known as the
Electric Power Industry Reform Act of 2001 is amended to read as follows:

“g)

=. 47. NPC Privatization. —
“(a) xxx

“Q) xxx

Xxx
“(© xxx

“(d) All THE REMAINING POWER assets of NPC shall be RETAINED BY
‘THE NATIONAL GOVERNMENT, AND MANAGED BY THE NATIONAL
CORPORATION (NAPOCOR);

“(©) In cases of transfer of possession, control, operation or privatization of multi-
purpose hydro facilities, NATIONAL GOVERNMENT safeguards AND
PROTOCOLS shall be STRICTLY prescribed to ensure that direct water usage
AND RELEASES in cases of SHORTAGES AND INCLEMENT WEATHER



CALAMITIES to protect potable water, irrigation, AGRICULTURAL AND.
RESIDENTIAL LANDS and all other requirements imbued with public interest;

“( The Agus and the Pulangui complexes in Mindanao, THE ANGAT
HYDROELECTRIC POWER PLANT IN LUZON, THE NAGA POWER
PLANT COMPLEX IN VISAYAS, AND ALL STATE POWER BARGES shall be
excluded from PRIVATIZATION. Their ownership shall be RETAINED OR
transferred to the NAPOCOR and shall continue to be operated by the NAPOCOR.
‘The said complexes shall be subject to REHABILITATION, UPGRADING AND
MAINTENANCE BY THE NAPOCOR;

“@ THE STATE SHALL ENDEAVOR TO DEVELOP THE GEOTHERMAL
RESOURCES OF THE COUTNRY AND BUILD NEW GEOTHI
PLANTS. The steam field assets and generating plants of each EXIST)

geothermal complex SHALL NOT BE PRIVATIZED. The geothermal complexes
covered by this requirement include, but are not limited to, Leyte A and B
(Tongonan), Palinpinon, and Mt. Apo;

SECTION 3. Repealing Clause.

issuances,

All other laws, acts, decrees, executive orders,
ind rules and regulations or parts thereof which are contrary to and inconsistent
with any provisions of this Act are hereby repealed, amended, or modified accordingly.

SECTION 4. Separability Clause. — If any provision of this Act is subsequently declared
unconstitutional, the validity of the remaining provisions hereof shall remain in full force
and effect.

SECTION 5. Effectivity Clause. ~ This Act shall take effect immediately after its
complete publication either in the Official Gazette or in two newspapers of general
circulation in the Philippines.

Approved,