NINETEENTH CONGRESS OF THE ) ff i
REPUBLIC OF THE PHILIPPINES ) if.
First Regular Session ) \

HOUSE OF REPRESENTATIVES

a14
House Bill No. 3183

Introduced by Representative Ralph G. Recto

AN ACT
PROTECTING CONSUMERS FROM UNREASONABLE FEE INCREASES
BY PROVIDING FOR A CONSUMER GROUP REPRESENTATION IN THE
GOVERNING BOARDS OF GOVERNMENT REGULATORY BODIES,
AMENDING FOR THE PURPOSE THEIR RESPECTIVE CHARTERS, AND
FOR OTHER PURPOSES

EXPLANATORY NOTE

The Bangko Sentral ng Pilipinas reported that the year-on-year
headline inflation at the national level for the year 2021 went up to 4.2
percent compared to the 2020 rate of 3.1 percent. This brought the average
inflation rate to 4.5 percent in 2021, which is above the government's annual
inflation target range of 2-4 percent for the year.' Contributing to the upward
movement are housing, water, electricity, gas and other fuels.”

The public helplessly watched by as a succession of increases in the
prices of goods and services relentlessly devour what is left of their
purchasing power. It is now more expensive to travel as transport inflation
rose due to higher domestic petroleum prices, reflecting the increase in
international oil prices. Our electric bill also went up in the last quarter of
2021 due to the increase in generation and transmission charges along with

the upward price adjustments of liquefied petroleum gas (LPG) and kerosene.

tion Report Fourth ¢
no 20Report/Attachments:

Sentral ng Pilipinas. 2021
hups://www.bsp.zav.ph/Lists

Iaqir_202L pdf (Accessed May



All of these unfold almost at the same time, even as the Filipino
consumer now turns to the government for relief. Unfortunately, this upsurge
in the cost of basic necessities had been approved by government regulatory
bodies despite heavy opposition from the public.

This fact tells us that the opinion of the public, as consumers and end-
users of products and services, do not weigh heavily on public policy when

the opposite should be true.

No less than the Philippine Constitution mandates that public
participation, in the interest of transparency and effective governance, shall

be promoted at all levels of social, political, and economic decision-making.

Furthermore, it is the duty of the State to provide for mechanisms in
which the sectors concerned can actively participate, in particular, in the
regulatory affairs of government.

Unfortunately, up to this day, a number of charters creating various
government regulatory bodies — especially those concerned with determining
rates of utilities and public transport - do not contain any provision of
increasing public participation in their decision-making process.

As a result, numerous policy decisions in the past have been approved
either without prior consultation from stakeholders or without full disclosure
of its details in public forums, thereby compromising the ideals of participative
policy-making and transparency.

This bill seeks to address all that.

Specifically, this measure aims to provide for the institutionalization of
the participatory mechanisms for stakeholders by including at least one (1)
representative coming from consumer groups belonging to the sector being


regulated by the government regulatory body concerned, amending the
charters creating the following regulatory bodies:

1. Land Transportation and Franchising Regulatory Board;

2. Toll Regulatory Board;

3. Energy Regulatory Commission;

4. Manila Waterworks and Sewerage System;

5. Local Water Utilities Administration; and

6, National Telecommunications Commission.

It calls for the creation of the position of Consumer Group
Representative, who will sit on the Governing Boards of these regulatory
bodies.

Once this bill is enacted into law, the public as a consumer would be
well-represented in the Governing Boards of these regulatory bodies when
they formulate public policy, particularly with regard to the approval of rate
increases in the sector they regulate.

The bill also aims to prevent malicious activities and grave abuse of
discretion committed by those who sit on the affected regulatory bodies
because they will no longer be left unchecked as representatives of sectors
concerned will have direct participation over decision-making affairs at the top

level.

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

mjma


NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

5152
House Bill No, 9193

Introduced by Representative Ralph G. Recto

AN ACT
PROTECTING CONSUMERS FROM UNREASONABLE FEE INCREASES
BY PROVIDING FOR A CONSUMER GROUP REPRESENTATION IN THE
GOVERNING BOARDS OF GOVERNMENT REGULATORY BODIES,
AMENDING FOR THE PURPOSE THEIR RESPECTIVE CHARTERS, AND
FOR OTHER PURPOSES

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

Section 1. Title. — This Act shall be known as the “Consumer Group
Representation in Regulatory Bodies Act.”

Sec. 2. Declaration of Policy. — Pursuant to the constitutional
mandate that the right of the people and their organizations to effective and
reasonable participation at all levels of social, political, and economic decision-
making shall not be abridged, and the State shall, by law, facilitate the
establishment of adequate consultation mechanisms, the State shall:

a.) prevent the concentration of power and information in a few

persons or government organizations;

b.) adopt and implement a policy of full public disclosure of all its
transactions involving public interest thereby promoting
transparency and accountability; and

c,) ensure the protection and advancement of consumer welfare by
mandating the inclusion of consumer group representatives in the
Governing Boards of government regulatory bodies.

Sec. 3. Consumer Group. - For purposes of this Act, a consumer

group shall refer to a representative organization, registered under the



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Securities and Exchange Commission, which has been established and
organized to cater to a national constituency, and whose mandate includes
the protection of the interests and rights of consumers in a specific sector
that is being regulated by a government regulatory body.

Sec. 4. Coverage. — The Governing Boards of the following
government regulatory bodies shall include at least one (1) member who shall
represent the consumer group belonging to the sector being regulated by the
government regulatory body concerned:

a. Land Transportation and Franchising Regulatory Board, created by

Executive Order No. 202, series of 1987;

b. Toll Regulatory Board, created by Presidential Decree No. 1112;

c. Energy Regulatory Commission, created by Republic Act No. 9136;

d. Manila Waterworks and Sewerage System, created by Executive
Order No. 1036;

e. Local Water Utilities Administration, created by Presidential Decree
No. 198, as amended; and

f. National Telecommunications Commission, created by Executive
Order No. 546.

Such member of the respective governing boards of the
aforementioned government regulatory bodies shall be called the Consumer
Group Representative.

The Consumer Group Representative shall perform the same functions,
shall have the same voting rights, shall be paid the same salaries,
remunerations and emoluments, and enjoy the same privileges as those
enjoyed by the other members of the Governing Board of the government
regulatory authority concerned.

Sec. 5. Qualifications of Consumer Group Representative. - The
Consumer Group Representative to be appointed should be a natural born
citizen of the Philippines, at least thirty (30) years of age, able to read and
write, a bona fide member of the Consumer Group which the appointee seeks
to represent for at least two (2) years prior to the appointment, and has


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never been convicted of any administrative, civil or criminal offense involving
moral turpitude.

The Consumer Group Representative should also have at least five (5)
years of known advocacy in the consumer sector the appointee represents.

If, at any time during the appointment, the Consumer Group
Representative ceases to be a bona fide member of the respective consumer
group through expulsion, resignation, or any manner of removal sanctioned
by its organizational by-laws, the position of Consumer Group Representative
shall automatically be declared vacant and shall be filled up accordingly by
initiating the appointment process as herein provided.

Sec. 6. Term of Office of the Consumer Group Representative, - The
term of office of the Consumer Group Representative shall be two (2) years:
Provided, That, upon the expiration of the term, a member of the consumer
group shall serve until a successor shall have been appointed and qualified:
Provided, further, That an appointment to fill the vacancy that arises prior to
the expiration of the term of the Consumer Group Representative shall only
be for the unexpired portion of such term: Provided, finally, That no member
of the Consumer Group shall be appointed for more than two (2) consecutive
or partial terms.

Sec. 7. Appointing Authority. - The President of the Republic of the
Philippines shall appoint the Consumer Group Representative subject to the
qualifications as herein provided, and to the limitations and prohibitions under
existing laws and statutes.

Sec. 8. Implementing Rules and Regulations. ~ Within sixty (60) days
after the effectivity of this Act, the Department of Budget and Management
and the Department of Trade and Industry, in coordination with the
government regulatory agencies as enumerated under Section 4 of this Act,
shall formulate the rules and regulations to effectively implement the
provisions of this Act.

Sec. 9. Separability Clause. — If any portion or provision of this Act is
declared unconstitutional, the remainder of this Act or any provisions not
affected thereby shall remain in force and effect.



Sec. 10. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, rule or regulation inconsistent with the
provisions of this Act is hereby repealed, amended or modified accordingly.

Sec. 11. EFffectivity. - This Act shall take effect fifteen (15) days
following its complete publication in two (2) newspapers of general circulation
or in the Official Gazette.

Approved,