Republic of the Philippines
aBottgc  of 3R€prc£€rttHfroes
Quezon City
NINETEENTH CONGRESS
First Regular Session
House Bill-No.    6423
Introduced by
APEC Pa,rty-fist Represeritafive Sergio C. Dagooc
PHILRECA Party-Iist RepreseT[±afiue Presley C. De Jes:us
AAMBIS-OvifA  Party-Iis± Represe"±afiue I,ex Amthony Cris A. Caleda
Am ACT
STRENGTHERENG THE ENERGY REGULATORY COMMISSION BY
EXPANDING AND STREAMLINING ITS BUREAUCRACY, UPGRADING
EMPLOREE sKILrs, AUGRAENTING BEREFITs AND AppROpRIATING
FurvDs THEREFOR
Republic Act No. 9136, also known as the Electric Power Industry Reform
Act  (EPIRA)  of  2001,  sought  to  restructure  the  electric  power  industry  by
organizing  and  dividing  the  industry  into  four  sectors,  namely  generation,
transmission, distribution and supply.
Under  the  same  law,  the  Energy  Regulatory  Commission  (ERG)  was
created and recognized as an independent regulatory body that could exercise
quasi-judicial functions.
It is the nation's power industry regulator that serves a crucial role in this
industry,  ensuring  that  the  consumers  are  protected,  but  at  the  same  time
enhancing   competitive   operations   within   the   electricity   market.   However,
evaluating the current structure of the ERG it is evident that there is a need to
properly specify the functions of powers of the Chairperson and the members of
the Commission in exercising Rule-Making and Quasi-Judicial Powers. Further


to properly regulate the qati8n's energy ipdust,ry, the bill aims to enhance and
strengthen the governance structure of the ERC by proving:  1) F`or purposes of
diversity, additiorial Qualifications and reduireinents for ERC Commissioners; 2)
Providing prohibitichs  and  di'squalificali:oris for  ERG  commissioners  and  their
relatives to prevent conflicting interes.ts; 3) divesting the functions and duties of
the  Chief  executive  officer  from  the  Chairperson  and  lodging  them  to  the
Executive  Director  o.f the  ERC;  and..4)    providihg  for  a  code  of ethics  for  the
Commissioners`of the ERC
In view of the foregoing, the bill, th.rough amendments of EPIRA aims to
strengthen  the  ERC,  allowing .the  commission  and  their  merLibers to  perform
their functions more efficiently.  For the foregoing reasons,  the approval of this
bill is earnestly sought.
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RepubHc of the Philippines
aBous€  of 3&xpcescotatftoes
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseBiu.No.    6423
Introduced by
APEC Party-fist Represeutctue Sergio C. Dagooc
PHH:RE/CA Party-list Represeritaf roe Presley C. De Jesus
AAMBIS-OWA Pcuty-Iist RepreseIT±afiue Lex Ant:horny Cris A. Calada
AV ACIT
STRENGTHERIING THE ERERGy REGULAfroRy cOMMlssloN By
ExpANDIHG AAVD STREARILIRENG ITs BUREAucRAcy, upGzuelNG
EMPLOYEE SHLLS, AUGMENTING BENEFITS AND APPROPRIATING
FUNDS THEREFOR
B~e it ernded, dy.t.he. Se:ra:±e arid House Of Represertwfiues Of the Philtppi:res in
Congress assembled:
SEorloN  1.  Short  "tde.  -  This  Act  shall  be  known  as  the  "Ene7igg
Regulafrory Commission Act. "
3                SECTION. 2. Decharatiori a/PoHCEr. -The state recognizes the signiricant
4     role of the Energy Regulatory commission in:
5                a.        Ensuring transparent and reasonable prices of electricity;
6                b.       Protecting  the  consumers  as  they  are  affected  by  the  rates  and
7     services of electric utilities and other providers of electric power; and
8                c.        Promoting competition, encouraging market development, ensuring
9     customer choice,  and  penalizing abuse  of market  power in  the  restructured
1o     power industry.


1                 Towards. thi.s end, the state shall:
2                 a.        Establish  a  strong,  indepep.dent,   transparent,.arid  accountable
3      regulatorybddy;.and.  :
4                 b.        Ensure the efficient and effective performance of the functions and
5     mandates of the regulatory body to ;nhance competitiveness in the electric power
6      industry.     .,`
7                  c.         ENSURE TIMELY RESOLUTION OF ALL PETITIONS AND CASES
8     FILED BEFORE IT By ANY powrfeilN.DusTRy'pLA.PER
9                  d .,.. bNSURE  ,..PROPER      PROMULGATION  '    OF.   ,.  RULES      AND
10      REGULATIONS IN LINE wiTH THE PURPOSES 'O`F EPIRA
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11                 SECTlbN  3.   DeJin€tion  a/  Terms.   For  the' purpose  of. this  Act,  the
12      following.terms shall have the foll.owin.g meanihgs unless provided otherwise:
t
13                  a.   Commission   refers   `to   the   decision-making   body   o.f   the   Energy
14      Regulatory  Commission  under  Republic  Act  No.   9136  compos.ed  of  one   (1)
15      Chalrpers6n arid EIGHT (8) Commissioners;
16                  b.  `|Jc;int  Co.ngressional  Energy  Commission. refers  to  the  Commission
17      created under Republic Act No. 9136, as amended;
18                  c.   Key   ERC   Personnel   refers   to   employees   who   hold   executive   or
19      managerial positions in the ERC;
20                 d.   Quasi-jridicial body refers to an entity, such. as the ere, which has the
. 21      powers and. functions to conduct hearings, find facts,  apply governing law and
22     resolve disputes between the agency and an entity;, and
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23                 e.   riuLE-MAKING body refers to-an  agency or body that  exercises  and
24     promulgate  ru:1'€s  and  regulations,  RELATIVE  TO  THE  PERFORMANCE  OF
25      THE ENERGY' SECTOR
26                              SECTION 4. Section 38 of the Republic Act 9136 is hereby amended,
27      toreadasfollows:   .                                                                                          ,
28                               `.       sEc.  38.  sTkENGTHENING/REcoNSTITUTloir of the
29                    Energy   Regulatory   Commission.    There'.is   hereb^y   created   an
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30                    independe.nt, quasi-judicial AND RULE MAKING regulatory body to
31                    be.named the Energy Regulatory commission (ERC). THE ENERGY
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REGULATORY          CO M M I S SION          ( ERC}          IS          HEREBY
REcONSTITu+ED. .TOwARDs. THls  riND,  THE  ERc  SHALL  BE
ExcLusIVELy riEspONslB,LE FOR THE REduLATION OF THE
ELECTRIC POWER AND ENERG'Y. INDUSTRY AND SHALL ENJOY
LIMITFD FISCAL AUTONOMY, WHICH SHAEL ALLOW THE ERC
TO  lryTERirALLy  ALLOcATE  THE  FUNDs` dENERATED  FROM
ITS   I.NTERNAL   PROJ,ECTS   AND   FROM  ..AN   AMOUNT   NOT
. ExcEEDINd FIFTy PERCENT t5OO,Oi OF TriE FEEs COLLECTED
F`ROM INDUSTRY PLAYERS, IN ADD.ITION TO APPRORIATIONS
RECEVIED   FROM   THE   GENERAL   APPROPRIATIONS   ACT   .
FURTHER,    ITs.   AriNUAL.  AppROvED    BUDGET    SHALL    BE
AUTOMATICALLY AND REGULARI;Y RELEASED.
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The Commissi6n shall be composed of a CHAIRPERSON
and  BIGHT .member.s.  TEIE  CHAIRPERSON  AND  THE  REST  OF
THE` MEMBERS   SHALL  be  appointed  by  the   President  of  the
Philippines  AND  SHALL  SERVE  A  .TERM  0F  SEVEN  YEARS:
pROv7z]ED, THAT THE FIRST Two  t3i AppOINTED MriMBERs,
SHALL  SERVE  FOR 'SEVEN  (7)  YEARS, THE  NEXT  THREE  (3)
APPOINTED MEMBERS SHALL SERVE FOR FIVE,(6) YEARS, AND
THE THREE  (3)  APPOINTED  MEMBERS  SHALL  SERVE  FOR A
TERM OF THREE (5) YEARS:  Proz;I.c!ecz, /itrfrier, That appointment
to any future vacancy shall only be for the unexpired term of the
predecessor: Prouzc!;cZ, fi7tczzzg, That there shall be no reappointment
and in no case tshall any member serve for more than seven (7)  years
in the commission.                                                             .'
The  CH.AIRPERSON. and  members  of the  Commission
shall assume office at the beginning of their t,er`ms: ProLJjczec!, That if
ulpon  the  effectivity  of  this  Act,  the  Comn|ission  has  not  been
constituted and the new staffing pattern and.plantilla positions have
not  been. approved  and  filled-up,  the  current  COMMISSION  and
exi.sting personnel of.THB ERG sh.all continue to hold' office.
•'   .  The existing personnel of the  ERC,  if qualified,  shall be
given`+preference in the filling`up of plantilla positions created in the
.ERG, subject to existin.g civil service rules and regulations.
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The
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CHAIRPERSON     and     the     merhbers     of    the
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Commission  shall ,be  natu.ral-born  citizens  aiid  residents  of  the
Philippines,  persoris of good moral characte,I,' at least FORTY (40)
years of age,  and` oi 'recognized  competen.ce .in .any of the following
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fields:  energ)7,  1avi,  econoinics;  finance,  cominerce,  or  engineering,
with   at   LEAST   FivE   (5)  'years bop   actual   and   distinguished
experience in their respecti`ve fields of expertise:  P7ioz;I.c!ecz, That out
of the  nine  (9)  members  of `the  Commission.,  at  least  FOUR  (4),
INCLUDING   THE   CHAIRPERSON,   sh.all.  be   MEMBERS   of  the
Philipp'ine  Bar viith  at  least  five  (5)  years  OF  experience  in  the
active  practice  of  law,  AT  LEAST  one..(1)  .MEMBER  shall  be  a
certified.  public   accountant   with'  at. least.  ofive   (5)   yea`rs   OF
experience in THE active practice OF ACcobNTING,  AT.LEAST
ONE  (1)  MEMBER    SHALL  BE .A  REPRESENTATIVE  FOR  THE
DISTRIBUTION SECTOR AND SHOULD HAVE. HAD AT L'EAST (5)
YEARS  OF`  EXPERIENCE  IN  SAID  FIELD,  AT  LEAST  ONE  (1)
MriMBER     sllALL     .BE     A  .'REPRESENTATrvE     FOR     THE
GriNERATION  SECTPR ArdD .sHOuLD HAVE HAD AT LEAST t5i
YEARS  OF  EXPERIENCE  IN  SAID  FIELD,  AT  LEAST  ONE  (1)
MEMBER  SHALL  BE  A` REPRESENTATIVE.. FOR THE PklvATE
SECTO'R, AND AT LEAS.T ONE ( 1) MEMBER SHALL COME FROM
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ANY FIELD OF ENERGY, 'ECONOMICS PR ENGINEERING WITH
AT  LEAST  TEN  (.10)  YEARS  OF  EXPERIENCE  IN  SAID  FIELD.
PROVIDED FURT.HER, THAT AMONG THE CHAIRPERSON AND
THE  rdEMBEks  OF  THE  cOMMlssloN,  ONE  tii  MEMBER  BE
FROM LuzON, ONE (1) MEMBER BE FRond vrsAyAs, AND ONE
(1) MEMBER BE FROM MINDANAO
Members` of  the   Commission` shall   enjoy  .security   of
tenure and shall not be suapended or removed.from offic.e except for
just cause as specified by law.                              `''
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The CHAIRPERSON and members of the Commission or
any of their relatives within the fourth civil degree of consanguinity
or   affinity,   WHETHER   SUCH   PERSONAL   RELATIONS   ARE
legitimate,  [or]  common law,  OR OTHERWISE,  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 GENERATING,  TRANSMITTING,  DISTRIBUTING
OR SUPPLYING. ELEchRICITY. UPON THE ASSUMPTI,ON BY THE
CIIAIRPERSON  AND  THE  fuEMBERS .OF  THE .ERC  OF  THEIR


RESPECTIVE,..  POSITIONS,    THE    CHAIRPERSON    AND    THE
MErdBERs OF THE ERc AND THEIR REspECTIVE RELATlvEs
WITHI-N THE PRESCRIBED DEGREE OF PERSONAL RELATIONS
SHALL DIVEST THEMSELVES OF ALL THEIR SAID INTERESTS.
THE COMMISSION SHALL. BE DIVIDED INTO THREE
L3±EDFHsi°ESE'R¥:TNT::c:ED£)[s¥:#%EESLLEALCA%'E[T:L:::::
Om, (1)  MEMBER WHO  ls A `LAwyER. .THE PRESENCE OF AT
LEAST TWO (2) OF THE (3) MEMBERS OF THE DIVISION SHALL
CONSTITUTE A QuORUM, AND TriE MAjoRITy VOTE AT LEAST
Two  t2i  MEMBERs  OF inE  DlvlsloN, IN  wHlcH  A  QuORUM
WAS PRESENT SIIALL BE' NEdE'SSARY FOR THE ADOPTION OF
ANY` RULE,   RULING,   ORDER,   RESOLUTION,   DECISION   OR
OTHER ACTs OF THE cord.MlssloN.
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A+ LEAST  FIVE  (5)  MEMBERS  OF THE  ERG .SIIALL
cONsriTUTE A QuORUM IN THE cOMMlssloN EN BAjvIc. THE
cHAIRPERsON SHALL BE THE. pREslDlir`G OFFlcER DURING A
COMMISslbN  EJV BAJVC 'HEARING.  IN  THE  ABSENCE  OF  THE
cHAIRPERs'ON, THE REST OF THE MErdBLRs, CONSTITUTING
A QUO,kuM,  SHALL  SELECT A  PRESIDING OFFICER.  A VALID
DE.clsloN    OF    THE    cOMMlsslori    Elv   BAjvIc   SHALL    BE
CONCURRED   IN   BY   THE   MAJORITY   0F   THE. MEMBERS
CONSTITUTING A QUORPM.
THE CoutMISSION Etv BAjvc SHALL ACT PRIMARILY
ON THE FOLLOWING CASES:
a.      CASES    INVOLVING`   THE    ERC'S    RULE    MAKING
POWEks, RULES, OR REGULATIONS;
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b.      CASES. INVOLVING  THE  NATIONAL  TRAutsMISSION
CORPORATIO N        ( TRAN S90 )         O R        ITS        AUTHO RIZED
CONCESSIONAIRE   WHICH'  OP,ERATES   THE   TRANSMISSION
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NETWO RK;                             .             .
c.      CAPITAL   EXPENDITURE   APPLIC.ATIONS   WITH   A
PRINCIPAL     AMOUNT     TO  .   BE      DETERMINED      BY     THE
IMPLEMENTING RULrs AND REGULA+IONs (IRE) i


• d.;.     CONTRACTS.BETWEEN INDUSTRY PRAYERS WITH A
PRINCIPAL AMOUNT TO BE DETERMINEb PY THE IRR;
¢
e.      CA.SES     PREVIOUSLY     HANDLED     BY    THE  ,  ERC
DIVISION  IN  WHICH  NO  QUORUM.`OR  VALID  DECISION.  WAS
AIT`AlriEb; AND
f.      AppEALs   ON   DEclsloNs   REriDERED   FROM   ANy
. DIVISION OF THE ERC;
9.      OTHER  CASES  AS  MAY  BE  DESIGNATED  BY  THE
CbMMISSION EN BANC ITSELF
j}ROvtDED,    THAT.   F`OR    CAPITAL    'EXPENDITURE
APPLICATIONS,    'THE   .COMMISSION    SIIALL.  RENDER    ITS
DECISION   WITHIN   SIXTY   (60)   CALENDAR   DAYS,   WITHOUT
EXTENSION;  '  LAFTER    .THE      FIRST.-    HEARING.    AT  .\  THE
pETITIONER's cOvERAGri AREA: pROvIDED, FzmrHER, TIIAT
APPLICATIONS   FOR   EMERGENCY ` CAPITAL   EXPEND.ITURES
SIIALL BE DECID.isb WITHIN FORTY-FIVE (45) DA+S.
I               'PEOV7Z}ED,    F"AL`Z,y,``  TISAT    FOR    RATE    CASES
•AppLlcATION,     THE     COMM.IssloN:     sriALL     REND.ER     ITs
PROVISIONAL'  AUTHORITY  WITHIN   NINE+Y   (?0)   CALENDAR
DAYS,     WITHOUT  .' EXTENSION,     RECKONED '`AFTER    THE
TERMINATE.bN    OF    EVIDENTIAL    HEARING   WHEREIN    THE
COMMISslbN  SHALL DECIDE ON THE CASE `SUBMITTED FOR
RESOLUT|oN.4'
THE  CHAIRPERSON  AND  THE  MEMBERS  OF  THE
ERc SHALL coNroRM To THE FOLLowlNG ,CODE oF ETHlcs:
(1)    AVOID   IMPROPRIETY  AND  THP  APPEARANCE  OF
IMpkopRIETY IN ALL ACTIVITIES;
(2)    PERFORM        ALL        DUTIES        WIT'H        UTMOST
IMPARTIALITY AND DILIGENCE;             .
(3)    BEHAVE' AT  ALL  TIMES  AS  TO  PROMOTE  juBLIC
CONFIDENCE   IN  I +HE   BBC   AND   AVOID   OFF-THELRECORD
cONVEksATION§   wlTH   ANy   ndEMBER   OF'.  THE   ERc   AND
PARTIES  THERETO,,,f INCLUDING  ANY  STAFF  ACTING  AS  A
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PARTY,  REGARDING THE MERITS OR ANY FACT IN ISSUE OF
ANY MATTER PENDING' BEFORE THE ERC;.
.t4i    `ABSTAIN FROM puBLlcLy.ExpREsslriG Hls oR HER
PERSONAL VIEWS 0N. THE MERITS `dF.ANY MAT+ER PENDING  .
:::°p¥RTT::TEHRECE:tDPE¥sQoU:EEL:]s¥]BLUAERcfE3T:[NST:°RNH:=,
DIRECTION AND CONTR9L!
._              ......    :                   .,                           I                  :                 -.                                                   .`          .
X'5.)    INITIATE  APPROPRIATE  DISCIPLINARY  MEASURES
AGAinsT   ANy  .ERc    pEksoNNEL    FOR   grip.ROFEssloNAL
coriDu.cT;                         `.
(6)    INHIBIT        HIMSELF        OR        HERSELF        FkoM
PROCEEDINGS  IN  WHICH  HIS  OR HER .IMPARTIALITY MIGHT
BE REASONABLY QUESTIO'NED;,                                  .
(7)     DISCLOSEHIS     OR         HER     ,  PERSONAL         AND..
FIDUCIARY INTERESTS AND MAKE REASONABLE EFFORTS TO .
DISCLOSE .THE PERSONAL FINANCIAL INTERESTS 0F HIS OR
HER SPOUSE AND CHILDREN;
(.§)    ACTIVI+lps  OtJ+SIDE  WORK  SUCH  AS  ACADEMIC
LECTukEs     wlTri':  HONORARIA     SHALL     BE     DlscLOsED
ANFurfuLy. ,`sucH DlscLOsuRE STA+EMENT SHALL BE FILED
WITII THE EXECUTIVE DlkECTOR OF THE ERC AND SIIALL BE
OPEN   TO   INSPECTION   BY   THE   PUBLIC   DURING   NORMAL
BUSINESS      HOURS.    DURING`.   THE      TENURE      OF      THE
clIAIRPERsON OR. MEnyBER OF THE ERc. THE cHAIRPERsON
Ok ANY MEMBER  OF.+HE  EEC  SHALL NOT RESUME  HIS  OR
HER  DUTIES. 4UNTIL  HE  0R  SHE  SUBMITS  SAID  DISCLOSURE
STATEMENT. TO `THE EXECUTIVE DIRECTOR OF THE ERC.
(`§)     REFRAIN `FROM SOLICITATION OF FUNDS FOR ANY
POLITICAL,    EDUCATIONAL,    RELIGIOUS,'  CHARITABLE,    OR
CIVIC PURPOSES, ALTHOUGH H.E OR SHE MAY BE AN OFFICER,
DI.RECTOR, OR TRUSTEE OF SUCH ORGANIZATIONS;
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.  (io)  REFRAI.N   FROM   ANy   FINAriclAL   OR   BuslNEss
DEALINGs WHlcH. nIAT CAST  DouBT  oN  THE  IMPARTIALITY
bF THE ERC CHAIRPERSON OR MEMBERS BY THE PUBLIC;
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(`11)  IN EXERCISING THEIR Q¥4SI-JUDICF?L FUNCTION,
THE.  CHAIRPERSON. AND   MEMBERS   OF.: THE   ERG   SHALL
ADHERE TO THE CANONS OF JUDld'IAL CONDUCT; AND
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(i2)  CONFORM `TO  ANY  SUCH  ADDITIONAL  RULES  AS
THE ERC MAY PRESC.Ei''BE.
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ANY. VIOLATION  bF  THE  ABOVE-MfiNTIONED  CODE  OF
ETHICS   SHALL  CONS+ITbTE  CAUSE  F`OR  REMOVAL  FROM
OFFICE   BY   THE.   OFFICE   OF   THE   PRESIP,ENT   0F   THE
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PHILIPPINES,     WITHOUT     PREJUDICE '   ho     ANY     OTHER
PENALTIES UNDER ALL APPLICABLE LAWS.            `
AFTER' TERMINATING EMPLOYMENT OR SERVICE WITH
THE  ERC,  THE  CHAIRPERSON  AND  MEMBERS  0F  THE  ERC,
EXECUTIVE DIRECTOR, SERVICE. OR OFFICE DIRECTORS, OR
I'TS   EQUIVALENT,   WHO   ARE   APPOINTED,   OR.   EMPLOYED
UNDER.THE ERc,  SHALL BE pkoHIBITED  FRord AccEPTING
EMPLOYMENT WITH ANY REGULATED '.EN+ITY FOR A PERIOD
OF THREE (3) YEARS, AND ALL MEMBERS OF THE ERC SHALL
BE. PROHIBITED   FROM  APPEARING  BEFORE  THE  ERC   ON
BEHALF   OF  ANY   REGULATED  ,ENTITY   FOR  'A   PERIOD   OF
THREE     t3i   ,  yEARs.   AFTEk     SAID     TERMlriATldN     OF
EMPLOYMENT.
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22                 SECTION. 5.  Expansion.  -The  existing  organizatiorial  structure  of the.
23      Energy  Regulatory  Commission.  (ERG)  is  hereby  reorganized  by  creating  the
24      following:
25                 a.   O'ffice of the General counsel and secretariat, directly reporting to the.
1
26     `  Commissiol}?fro Bcznc;
b.        Internal Audi.t Unit, directly reporting to the Commission en Banc;
29                   c.         Six  (6)  1irie.services:  (a)  Regulatory  operations  service;  (b)  Market
30      Operations Service;  (c)  Consumer Affairs Service;` (d)  Legal Service;  (e)  Planning;
31      and public lnformatiori Service; and (fl Finance and Administrative service.
32                  The commission  erL Bane 'may create oversight corfurriittees or services as `
33      may be deeined necesfsary and consistent with the fuinctions arid mandates of
34      the ERC.
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c.


S.,-.:
1                 To  achieve  the.goals  of this  Act,  the.Coammission,  as  an  independent
2      regulatory  body,  is,\ hereby  author`ized  ,to  prchide  for  its  reorganization,  to
3      streamline   its    s.tructure   and    operations,    upgrade   its   human   resource.
4      compliment aid enable the  sane to p.erform .its functions.rmore efficiently .and
5      effectively  and' exercise  its  power under  this.Act  and  under  Republic  Act  No.
6      9136,  otherwise  known.  as  the  "Electric  Poiver  Industry..Reform  Act  of 2001"  .
7  .    (EPIRA).
8                 All.I;ositions. of the ERC shall be governed by a compensation and position
1.
9      classification system and qualification standards appr,ove.d by the Commission
10      eri Bcirtyc based  on  comprehensive job. analysis  arid  au.dit  of actual  duties  and
11      personal  responsibilities.  Towards  this  ehd,  the  C.a.mmission  shall be  exempt
12     from laws, rules,  and regulations on compensation, position classification and
13      qualification standard's. The Commission shall, however:,  endeavor to make its
14      system   conform.   as.,closely.`as.   possible   with   the   principles   under   the`
15      Compensation  `and  Position..Classification  Act  of  1989,  otherwise  known  as
16      Republic Act Nb. 6758, as.amended.
17                  SECTION   6.   Commissfon '.€ri   Bcznc   -.In   add.iti'on   to   the   functions
18      enumerated-in. Republic Act No. 9136, Republic Act No. 9513, otherwise known
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19      as the "RerLewable Energy Act-of 2008," and other relevant.laws, all the members
2.0      ofthecommissionshall:     `.  .
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21                 a.   Exercise all quasi-judi`cial and RULE MAKI,ira functions in furtherance
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22      ofth`e ERC's mandate under Republic Act No.' 9136`;`. ::''
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23                  b.   Act on the  selection and appointment of all ERC personnel:  Prouz.c!ecz,
24     That the appointment of ERC personnel with.a rahk lower than ; Division chief
25     may be delegated to the chairperson;
26                 c.        Approve the iriternal ,rules, organizational structure, and operational
2`7      strategy of the ERC; and
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28                  d.   Act as the Head of.-Procuring Entity (HOPE) and exercise all duties and
29      powers as stated in Republic Act No. 9184, otherwise known as the "Government
30      Procurement  Reform `Act:''`  Proz/{c!ecz,  That  the  Commission  may  delegate  its
31      functions under the..'said Act.                            ''.
32                  SECTION    7.    DIVJSJON   -   THE   THREE    (3)    DIVISIONS    OF   THE
33     cOMMlssloN  sllALL 'HAVE .uRISDlcTIory OvER ALL MATTERs OF ONE
34      MAJOR ISLAND. WHEREIN, ONE (1) DIVISION SHALL BE DESIGNATED TO


1      LUZON, ONE.(1)  DIVISION SIIALL BE DESIGNATED TO VISAYAS, AND ONE
2      (1)  DIVISION  SIIAIJL  BE  DESIGNATED  TO  MINDANAO.  THESE  DIVISIONS
3      SHALL HAVE JURISDICTION OVER THE FOLLOWING MATTERS;
4                a.   coMPLAlryTs    INvOLvlNG    INDusTRy    pLAviRs    wlTHIN
5                     TERRITORIAL -uRrsDlcTION OF THE DIvlsloN;
6                b.  cAplTAL  ExpENDlquRE AppricATIONs  wlTH  A  PRINclpAL
7                       AMOuNT 'TO.BE DETERMINED BY'THE IRR;
8                 c.  CONTRACTS     BETWEEN     INDUSTRY    PLAYERS,    WITH    A
9                       PRINCIPAL AMOUNT TO BE DETERMINED BY THE ERR
10                 d.  O+HER  SUB,ECT  MATTERs..TriAT  SHALL  BE  DETERMINED
11                     ' ` AND DELEGATED BY THE COMMISSION EN BANC.
\
12                 SECTION 8. Requfremenfs,..`-The members of the commission shall, upon
13      assumption ofofflce
.,
{
14                 a.   Publicly  disclose  any  einployment,  corisultancy,  or  any  connection
15     with, and. any. pecuniary interest in an Electric pbwer` Indust`ry participant;
16                 b.   Pubiicly.disclose  if his  or  her  spouse,`partner,.and  any  relative  by
17      consariguinity'or  affinity  within.the  fourth  civil  degree  is  employed  or  has  a
18      consultancy or any connectio.n With,  or hats a pecuniary interest in an Electr.ic
19      Power Industry participant;t`  .  '  ...
20                 c.   Dives't  through  sal`e  or  legal  dis.bosition` any  and  all  interests  in  an
21      Electric power Indu.stry p.articipant; and
22                 d.   Termiiate   employm;nt   o-r.  consultanby   with   any   Electric   Power
23      Industry participant..
24`.    .             SECTION 9.  The Chafxperson. The  Chairperson  shall be from the fielc|s '
25      of energy, law,  economics, fin.apce,  commerce,  or eng.ine6ring with at least teh
26      (10) years of experience ir} energy and or public u'tility regulation: Proujc!ec„hat
27      the qualificatioans and requirements in secti'on. 3 of this Act is coinplied with.
28                SECTIOIN 'LO.  Duties and riesponstbtlities of the chatrpersor..  -The
29      Chairperson as head of the commission e7i Bcinc.shall have the following duties
30      and responsibilities:
• 31                 Chairperson of the commi.§sion:


1                 a.   Determine   the   date,   time   and   location.  of  the   regular  or   special
2 .    commission meeting ahd develop the agenda for the meeting with the consensus
3      ofallthe meinbers of the commission;                       .  '.`
4                   b.   Preside    Over    meetings    .o`f   the    Csinmission:    proz;t.czecz,    that    the.`
5      chairperson shall. have the right t6 vote. on.tall matters, issues or case pending
`,
6      before the commission;
10
c.   Act.as the official representative of the  ERct to Promote collaborative
relatioriships   and   open   commrinication   betwe?h   th.e  `Commission   and   the
following:
i  `  .General public;.
11                               ii    Executive and Legislative Government Agencies;
12                              iii   International organizatiori§ or Agencies; and
13                                iv   Industry st..al{eholders.
.,.
Chairperson ' a.ctirLg as CEO:
15                 a,    :.   L.Sad and oversee the implementation of the commission's mandate
1.6     under the EPIRA in accordance with the  Commission approved internal rules,
17`     organizational `and operational strategy;
..`
1`8                 b.        Ensure  good  governance  policies,  practices,  rules  and  procedures ,
19 ,    that promote the highest standards of,integrity, competence, and transparency..
20      areinplace;.
21                 c.         Exercise admiriistrative supervision ,over the executive director and
22      s'ervice directors;
23                  d..     Oversee quality control throughout the ERC;
e.        Ensure that members of the commission undergo capacity building.
programs to continuou`sly enhar}ce techpi¢al competence;
'
f.        ' Delegate.  admiriistrative   authority   for   the   performance   of  any
function to officials and employees 6f the .ERC;
9.        Supervise the preparation of the annual and supplemental budget
of the Commission.;. and


•`®
1                 h.     `  P;.iform  siich  othef` functions  as. may  be  provided  by law  and/or
2      delegatedbythecommission.       .
3                  SECTION  11.. '.ExeoutftJe Director.. i The Executive  Director shall be.the
4     Chief operating officer (COO) who shall assist the chairperson who is the chief
5      Executive officer (CEO).
6                 The  Exec.utive  Di±;€tor  shall  be  a lawyer with  at least ten  (10)  years  of
7      active practice. of law and Career Executive  Service  (CEsj  eligible with at least
8     five (5) years experience in manag'ement and administration.      .
The duties and re.sponsibilities of the Executive Director shall include the
following :                           ,                                                                                                                  .
a.   Oversee  th.e  .daily  operations  of  the  ERC  and  ensure  the  smooth
functioning of 'all ERC proc'esses;.
b.   Provide  the  Commission.with  periodic  updates  on  the  day-to-day
operations of the ERC towards the achievement of`its target. objectives;
15                 c.,  Ensure  the  adequacy  of  ERC's  maripower  complement,  equipment,
16      facilities or space, materials, supplies and systems;
11
17    .              d.   Develop,  ih` coordination with the.` seivice ¢irector's,  t{he ERC's annual
18     operating plan  and  internal  rules  to  be  submitt.ed  to  the  Commission  for  its
19      approval;
25
26
27
28
29
30
31
'.     .    .''
',t,I
e.   Esta.blish, in coordination with service .directors, periodic performance
targets of all'services to be submitted to the Commission for its approval;
f.    Evaluate and ensure compliance of the services and all ERC employees
to  the  Commission  .approv6d  periodic. performance  targets,  annual  operatirig
plan and internal rules;   .
9.   Coordinate wit.h all services on the preparation of the proposed annual
budget and procureinent 'plan to the Commission for its approval;
h.   Molritor and ensure the implementati.on of the Commission approved
annual budget and procurement plan in accordance with the DBM's expenditure
program; and
`
i.    Perform  such  other  functions  re.1ated  to  the  foregoing  or  as  may be
assigned by `the Commission or the Chairperson.


SEctTO¥ `+2. inties and 4esponstbiunes Of the Executive Director. -
The duties an.a respohsibilities.of the Executive Director shall include, but shall
not be limited to:
4                  a..  Developing   and   proposing;    for   the   Commission's.'approval,    the
5      operationaliz.ation of the strategies and policies`agreed upon by the commission;
6                 b.   Effectively executing the approved operationalization of the  strategies
7      and poli6ies`iagreed upon by the commission;
8                 c.   Lea,ding  the   managerpent   of  the   daily  operations   of  the   ERC   i.n
9     accordance with the plans and within th6 bud.get approved by the commission.;
?
10                . d.   Assuming full.responsibility for the overall supervision and control 6f
11    .  all divisions, units, and services of .the ERG;
12                 e.   Assigning to  each  division,  unit,  and  service of the  ERC  such duties
13      that are considered necessary or expedient;  `
14                 f.    Coordinating the.workings of the divisions,  units,  and.Services of, the
15       ERG;
9.   Establishing a mechanism for capacity buil.ding for all employees of the
ERG   to   continuously  enhance   technical   competence:   Proutc!ecz,   That   such
mechanism will be based on the principl.e of rri.6ritociacy;
19                  h..  Ensuring `compliance with  the  ERC's  Enh-anced  Merit  Selection  Plah
20     and/or   other,  plans   related   to   personnel   selection   duly   approved   by  the
21      Commission when i't comes to the hiring.and.proinotion of employees;
•,
`
22               . i.    Leading the map.;agement to ensure effective trorking relationships with
23     the commission by reguiariy communicating with the chairperson to review key
24      developments, issues,. opportunities, and coricerns;
i
i
25                 j.,    Ensuring that the..!management gives priority to providing documents
26     and  reports  which  contain  relevant,  accurate,  timely,  and  clear  information
27      necessary for the commission to fulfill its.duti'es;
30
31
.,
k.   Maifitaining`remilar dialogue with the Commission while ensuring t.hat
the Commission, especi.ally th'e Chairperson, is alerted to fo'rthcoming compl?x,
contentious, sensitive, or strategic issues facing the ERC;
1.  . Advising  the  Commission  on  any.  matter  referred  to  the  Executive..


Director;
2                 ri.,Managing  the.affairs  of`the  ERC  ip  accordance  with. good  corporate
•  3      governance practices.'and.pro.cedur.es. while pr`olrioting the highest standards of
:.4      independence, transpar.ency, integrity, and probity;
5                 n.   Initiating investigations  and. recomlriending  administrative  sanctions
6      against erring em'ployees, without Prejudice to the filing of any criminal action
7      againstthe concerned employee;                          '   .'
`!
8                 o.   Regularly srit}quitting, to the commission updates on the operations of
9      theERC;and
10                  p.   Performing a.uch other.dutie`s as the. Commission may assign.
11                  All    decisions    of   the   .Ex.e.cutive    Director    inv.olvi`ng    budgeting   .and
12    ` disbursement. of funds shall be subject to the appr.oval of th.`e Commission.
13                SBCT\ON   L3.   Duties  and  Re§ponsibitittes.Of  the. Members  Of  the
14      Commfssfon.  -In  addition  to`the  functions` enumerated  in  Republic  Act  rio.
15      9136, the members of the commis§i6n shall:
I,.,
16                 a.   Regularly   attend   and.  actively  parti`c.ipate  in   the   meetings   of  the
17      Commission where  any case,  issue,  or matter within  its.jurisdiction is under
18       considera.tion`; ``..
19                 b.   Recommend  t.o  the  Chairperson  the. inclusion  in  the  agenda  of any
20      case,   issue,    or  `matter   deemed   appropriat`e   in   the   performance   of   the
21      Commissiori'S'functions;                                                         6
22                 c.   B,e properly inforpred about and thorough.ty analyze cases, issues, and
23      matters p.ending before the commis.sion;
24                 d.   Take part iii` the continuous educatiori and capaci.ty building programs
25      of the comlfiission to. enhance technical competence.;
26                 e.   Abstain  from  acts  which  unduly  influence,  impede,  or  hamper  the
27      Executive  Director  or  any  ERG  employe,e  from  effectively  fulfilling  his  or  her
28      duties and responsibilities;
/
29               .    f.'   'Apr;6in`t  `th6   Executive   Director   6f`.  the   ERC:    Proz;iczecz,   That   the
`30     requirementig  prohibited  acts,  qualifications, `and  duties  and  responsibilities
.,
31      stated in seofions 7, 8,.12, and  13 of this Act are complied with;


P
1                  g.   Act on the selection aid appoihtment`of Key ERG personnel: Prouzczec{,
2     That the  selection proc.ess for Key ERC Pers6nnel  shall be in accordance with
3      the   ERC's   Enhanced   Merit   Selecti.on.,Plan   and/or   other  plans   relate.d   to
4     personnel selection duly approved by the.Commis;ion;
'-''
5                  h,.   Review  and  act  on  'the  endor:Sem6rit  of ,the  Proposed  ERC  budget:`
6      Proz/jc!ecz,  That  such .endorsement  shall. come `froqu 'the  Executive  Director and
/7      shall be Substantiated with supporting documents;
~
..'*
i..   Initiate, motu propio or upon formal complaint, investigations against
the Executive Director and  act upon  shch investigations:  Proz/{czec!,  That  such
10     investigation is without prejudice to the filing of administrative or criminal cases.
11      against the Executive Director; and
12                 j.    Perform in good faith and to the best ofit§ ability; the functions stated
13      in Republic Act No. 9136 and t.he duties and responsibilities specified in this Act.
14                  SECT16N 14. Section 39 of the Electric power Industry Reform Act (EPIRA)
15      of2001 is hereby amended to read as follows:                                   ...
"SBC . 39 . AD`JUSTED Coraper\satton. STRUCTURE and Other
Emozt4merits for ERG  PersorLnez.  -The ' coin'pensatiQn  and  other
emoluments   for   the   Commission 'and   ERG   personnel   shall   be
exempted  from  the  coverage  of  Republic  .Act  No.  6758,  otherwise
known.''.as   the   "Sat.ary   Standardization. Act,"   AS   AMENDED   BY
EXECUTIVE ORDER NO. 201; SERIES OF 2016.
The CIIAIRPERSON and member.s of the Commissi6n shall be
entitled to the.isame salaries, `.all`owiance,s and .benefits as those of the
Presiding |Justice' and Associate Justi6es of the SUPREME COURT,
respectively..  . The    CHAIRPERSON .  and    the    members  . of    the
Commission shall, upon completion of th..'eir term or upon b6coming
eligible  f.or  retiremerit`rinder  existing laws,  be  entitled  to  the  same
retireinent  benefits  and  the  privileges  provided  for  the  Presiding
|Justice    and    Associate    Justices    of    the    SUPREME    COURT,
respectively.
•.  THE cOMPENSATroN SCHEDULE OF THE ERG pERsONNEL
t.&..   SHALL BE CO'MPETITIVE WITH THE SALARY RANGE OF OTHER
REchLATORY     AGENCIES,     AND     THE     ELECTRIC     POWER
.`    INDUSTRY     STAKEHOLDERS.    `FOR     THIS     PURPOSE,     THE


18
19
20
`,
21
22
•23
24
25
26
.27
COMMISSION EJV BAAIC SIIALL, `SUBJEC.T TO THE APPROVAL OF
THE    inslDEIfT    OF7    +HE    pHILlpplNEs,    AD.UST    THE
COMPENSATION      SCHEDULE      AND      BEriEFITs      OF      ERc
pERsordNEL  ONCE.'EVERy  Two  (2)  yEARs  TO  ENsuRE  THAT
THE    SAME    Is    COMPARABLE  .twlTH    TriE    COMPENSATION
PACKAGE   OF   OTHER   REGULATORy   AGErdclEs,   AND   THE
.ELECTRIC`. POWER' INDUSTRY STAKEHOLDERS.
EVERY TWO (2) YEARS FROM THE LAST CbMPENSATION
SCHEDULE.  A:DJUSTMENT,   THE   ERG   :SHALL   CONDUCT   AN
ASSESSMENT  ON  THE  COMPETITIVENESS  OF  THE  LEVEL  OF
cbMPENSATION OF THE ERG pERsONNEL .AqAlirsT THOsE OF
THE EinpLoyEEs  OF THE sTAKEHOLDEks AND REGULATORs
OF    ,OTHER     JURISDICTlbNS.     THE..ASSESSMENT     SHALL
cONslDER ANNuap MERIT REVIEw OR INCREASEs BASED ON
• PkoDU.CTIVITY AND EFFICIENCY..
SECTION  15. Section 40 of the Electric Po`wer Indtistiv Reform Act (EPIRA)
df 2001 is h'ereby amended to read as follows:
"SEC.  40.  Enhancement Of Techwi=az Comp=ter+ce.  - T"
TECHNICAI, COMPETENCE OF THE ERC PERSONNEL SHALL BE
BENCHMARKED  AGAINST  INTERNATIONAL  BEST  PRACTICES.
IN VIEW THEREOF,  THE ERC SHALL isTABLISH` A .RIcOROUS
AND SUSTAINABLE TRAINING PROGRhM THAT wiLL ALLOW ITS
STAFF TO ACQUIRETIIE NECESSARY KNOWLEDGE AND SKILLS
'    AT PARwlTH THE riRsONNELOF kEGULATORS FROM OTHER      ,
:'.    .uRISDroTIONS AND.EcONOMIEs.     ,
• ..  FOR THIS PURP.bsE, THE ERC. SHALL ESTABLISH A UNIT
WITHIN      ITS      STRUCTURE    .THAT      SHALL      DESIGN      A
STANDARDIZED TRAINING AND DEVELOPMENT PROGRAM AND
FACILITATE     THE     REGULAR     CONDUCT     OF     NECESSARY     `
TRAINING FdR NEW AND INCUMBENT EEC PERSONNEL.
'  THE ERc SHALL,AinoT NO LEss THAN FIFTEEN PERCENT     I
t'i5O;Oi  OF  ITs  foTAL  AinNUAL  AppROvElj. BUDGET  FdR  THE
TRAINING AND UpciRADING OF SKILLS '.OF ITS PERSONNEL.
THE    EEC    MAY    HIRE   A    REASONABLE    NUMBER   OF
CONSULTANTS  OR. EXPERTS  AS.  MAY  BE  APPROPRIATE  AND
:       ' ...,  `&€                                                                                                                                                      ,
``0
I  .'
i
..         ;         i                     1.I
+
1.-.


-,
NECESSARY TO G.IVE ADVICE TO., AND PERFORM SERVICES FOR
THE ERc. THE TERMs AND cordDITIONs OF THE ENGAGEMENT
SHALL  BE  AS  DETERMINED  BY  THE  ERG,` SUBJECT  TO  THE
PROVISIONS OF .:REPUBLIC ,ACT NO. 9184,. OTHERWISE KNOWN
As THE «GOvERdrMENT pROcuREMENT REFokM, ACT.»
6            t't.   SECTION' 16..  Sem`Znczr ar.d other p7io/esszonczz Fees. -F`ees for relevant
7      seminars,   professional   prembership,   registration..®fees,   including   th6.se   for
8      maridatorty contiriuing professional educatioL. (CPE.) ,  aid.related niisce.llaneous
9      expenses. of ERc emproy6es holding positions for which a professional license is
10      required by the office, shall be borne b} the ERG.
11                 SECTIori   17.   Ber.efits  and  Pn.I".Zeges.  ^-The  ERC  shall  provide  its
12.     employees with the following benefits:                                                                                .
13    .            a.   riealth   care   services   through   a  health   maintenance   organizati6n
14      (H`MO)..Expenses  for  mandatory  annual  executive  check-up  for  all  employees .
15      shallbe for the account of the ERC;
16                  b.   All employees. Shall be covere,d by acci.dent insurance p61ieies procured
17      by.theERcatits.ownexpense;,                                     .      ,
18    `             c.   'A p,rovident.fund,  which  shall.consist of coritributions made by both
19      the  ERC  and  its  employe?s  to  a common  fund  for the payment.of benefits to
20  .   employees or th.eir heirs;``
21                 d.   Peif'ormance  ine6ntives  in. accordance  with  a  performance  incentive
-
22      pro'gram  designed and..drily apf)rQved by.the  Commission  e7t bczJic, which  shall
23      in no case be less that the incentives provided.under existing laws.
`,'
SECTION  18. Section 41.pf the Electric Pow.er Industry Reform Act (EPIRA)
of 2001 i:s hereby ainended to read as follows:  .
'
"S^EC:   4±'.   PB0TBCTI0N   and.  .Promotion   Of   Consramer
Jrtteres€.  - THE  ERC  SHALL ADDRESS 'AND  PROVIDE TIMELY
(
RESOLUTIONS   TO   CONSUMER   COMPLAINTS   AND   ENSURE     `'
ADEQUATE      PRO'TECTION      OF      CONSUMER      INTERESTS
THROUGH.THE'ADOPTION,OF,POLICIESTHAT.FOS'i`ERcOALS
SUCH AS PUBLIC ACCESS TO THE ERC AND ITS PROCESSES,
C.ONSUMER EDUCATION,, AND EFFICIENT UTILIZATION OF ERC
RE.SOURCES..
`.I....
•.,.
1


11
12
13
14
15
FOR THIS  PU.RPOSE,? THE,A ERC  SHALL  kEGULARLY
CONDUCT   TRAININGS   FOR   THE   is'FFICIENT   ±IANDLING   OF
CONSUMER  COMPLAINTS  BY  THE ` DISTRIBUTION  UTILITIES'
CONSUMER    .vyELFARE  ...bESK     (CWD).     THE     ERG     SHALL.
ALLOCATE AN ANNUAL BUDGET FOR THIS PURPOSE.
SECTION   19.   L€mfted  F£.scat  Att`.fonbmg.  -:.In  addition  to  its  yearly
app,ropriation   authorized   in   the   Gen6'ral   Appropriations   Act   (GAA),   trie
Commission shall be allowed to use for.the following year thirty percent (30%) of
its revenues generated from the collection of fees,  assessments,.licenses, fines;
perialties and oth'er charges.
.J,
The said amount shall be utilized in the fol.lowing mariner:
•a.        Ten percent (loo/o)...6f such income shall be used:to augment ERC's
Capital Outlay (CO) Budget;
b.        Sixty percent  (60%)  of such income  shall be used to  augment the
ERC's Maintenance and Other Operating Expenses (MOOE) Budget; and  .
•.,..                                                                                                           a
•  '    c. I    .  Thirty percent (39°/?)  of such income',.shall be rised to augment trie
ERCZs  Personnel  Service '.(PS)  Budget  intended ,to  augment  the  benefits  of the
ERC Officer.s,  personnel and  staff except,for the. Chairperson and members .6f
the Commission.
In case the FRC falls to .fully utilize the revenues mentioned herein,  the
unutilized anibunt shall rev:rt to the National .Treasriry.
SECTION 20. mbz€c D€scZosttre and T`rahsparencg.. -The Commission
shall  submit  and  make  available  'to  the  public,  within `the  prescribed  period,
reports  pertinent  to  t>ompliance  submiss.ions,  reports,  certificates,  orders, .or
decisions,  except those ,designated  as confidential  submissions affecting trade
sec`rets  .or  the  like,. .made  or  issued  ih  relation  to  industry  players  in  the
generation, transmission, distribution, ..arid supply sectors, such as resolutions,
orders,  decisions,  certiricates  of corxpliance,  certificates of registrations,  retail i
rates of distribution utilities,  system loss  data of distribution htilities,  system
and  car)ital  in fr:as.tructure,  consumer  complaints,  'applications,  petitions,  and..
other  sim`ilar  public  documents  to  an  Electronic  Disclosu`re  and  Data Access
sy¥€m (EbDA) repository.'`
rf•`.   As used  in this` Act,  EDDA refers to  the  system  for  disclosure  of energy
inmdri§try information for public  access. to  ensure  transparency  and  consumer


-.',                             `
.
1     protection usih+g electrbnic databa€e.and commuriications system that shall start
2      operating for within three (3) years from the effectivity of this Act.
3           .     SECT.ION 21. Peap!e's cottnsez. -There is.hereby created an office to be
4     known as the office:of the people's'Counsel under th€ administrative supervision
5      of the  Chief of the  Public  Attorney's  dfflce  (PAO).    The  office  of' the  People's
6      Counsel Shall have such pumber of employees as may be. riecessary to perform
7      the functions hereinafter 'specified.  The  ofrice of the  People'.s Counsel  shall be
8      appointed by the president o.fthe philippii€s.  The employees of the office of the
9      People's Counsel shall be appointed by the pA.O chief upon the recommendation
10      of the offlce of the people's Counsel.
d'
11                             The  office  of  the  .People's  Counsel  and  its  eriployees,  shall  not,
.,
12      during  their   continuance   in   office,   intervene   directly.or   indirectly  in   the
13      manage.ment or control of,  or be financially interested  directly or indirectly in
14     any.transmission and distrfoution utility, generation company, an.d supplier as
15      defined in RepublicAct No.  9.136.
16                              It shall be the.duty of the office of the peof)1e's Counsel to represent
17      arid  appear  for  the  public  before  the  ERG  in  every,.case .iLvolving  consumer
18      interests. In all rate.cases initiated before it, the ERC shall direct the applicant
19      or  petitioner  to  furnish  the  office..of.the  People's  Cbunsel  with  copies  of  its
20      application including its annexes.  Likewise, the ERC shall furnish the ofrice of
21      the people'S Counsel.of ali its orders in th.e said rate.cases.
22            .    SECTION 22. Ftonkfng pr3utzege. I All official.inail matters and telegrams
23 -    of  the  ERC  addressed  for  delivery  within  the  Philippines  shall  be  received,
24  .   transmitted, arid de.1iverad free `of charge: Proz;{c!eci; That such mail matters shall
25      not exceed two (2) kilograms.
26            i     SECTION 23. Section 42 of the Electric power Industry Reform Act (EPIRA)
27      of2001 is hef`ebyainended to read as follows:   '
28                             "sEc.  42.  AppROpRZArroAIs..  i.sucH  suMs  As  MAP  BE
29`                  NECESSARY   FOR   THE   SUCCESSFUL   IMPLEMENTATI0N   OF
30                   THIS ACT SHALL BE TAKEN FROM +HE CURRENT FISCAL YEAR
31                   APPROPRIATfoN  OF  THE  EEC.  THEREAFTER,  THE  AMOUNT
: :               X::DEsbi£°LR :=E [CIT:E:[DITEUB?.-P :IN[MTP==M :#:ILO H G°EFINET#:
34                    APPROPRIATIONS ACT."    ..;


~'
1           „    SECTION 24. Prohibited Acts. -The member`s of the commission, within
2      the.duration of their t.erin,.shall be prohibited from:
3                a.   I.aking  up  any  employquent  or  consultan6y  arrangement  with  any
4      Ele'.ctric power Industry.Participant;      ..`+
5                 b.   Holding any connection tb  and ahy peculniary interest in an  Electric
6      Power Industfy participant;   `
7                  c.   Holding any other` office or` employment; and
8                 d.   Directly.or  indirectly  practicing  any  profession,  p'`articipating  in  any
9     business, or be financially i.nterested in any contract with, or any franchise, or
10      Special  privileges  grant?d  by  the `governme.nt  or  .any  subdivision,  agency,. or
11      instrumentalit,y   . thereof.,.  t  including     governmerit-owned     and     controlled
12.     corporations oi-their subsidiaries.
13                 The members of the comngission, after the cessation of their service, shall
14      be prohibited from:
15        ..  `     a..  Ru'nfiing   for   office   in   the   election   immediately   succeeding   their
16  ' .I  ce§sation`from. office,; and
17..             b.   Personally appearing or practicing as counsel or agent on any matter
18    . i)eriding before the Coprmission for two '(2) years following the cessation of their
19       service.
20                 Any spouse,.partner,' and relative by consanguinity or affinity within the
21      forirth civil degree of the members of the` Commission shall be prohibited frorri:
22                 a..   Taking  up  any  e`mployment  6r  consultancy  arrangement  with  an
23     Electric power 'Industry participant during the.incumbency of the member of the
24      Commission to. whom he o`r she.is related to;
25'                b.   Holding any connection t'o and pecuniary interest in any Electric power
26     Industry' Participant during the incumbency of the member of the.Commission
27    . to wihom, he or she is ,related to;
.,'
L
28                 c.   Appearing  as  counsel  or  agent  or  any  matter  periding  before  the
29      Commission  or  transacting  business  directly  or  indirectly  therein  during  the
30      incuinben.cy of t.he member of'the Commission to whom he or s.lie is related to,
31      and within two (2) years from cessation of their service.


1                 SECTION  25. .frans€torI/  Proutsfon. .-The  current  members  of  the
2      Colrimission shall continue to serve in such ca.pacity until the completion of their
3       term...
i ,,4                 The qualifications, requirements, and prohibitions stated in sections 6, 7,
..'5     .and 8 oft.his Act shall apply to new members.of the Comrhission.
6                 The :'current chairperson shall, immediately divest himself of his role and
7     powers as the Chief Executive Oiricer of the C6mmi§sion upon the effectivity of
8       this Act..                                                           '.T`',
9                 The    current.    Executive    Director:.`  shall.   assume    the    drities    and
10    `. responsibilities laid otit in Section  13 of this Act upctri the effectivity of this Ac.t:
1.1      Proz;jdec!,  That  upon..such. assump.tion,  the  current  Executive  Director  shall
12     immediately comply with the requirements and prohibitions stated in sect.ions 7
13   I  and 8 this.Act: Proz/€czecz, fitrfher, That the current Executive Director shall serve
14      as srich until h.is resignation, retirement or termination for chuse.
',-,•',,
:15                 .SECTION 26.. OtJersight committee. -Upon th.e effectivity of this Act, the
16      JCEC ;stablished under Republic Act No.  9136  or the Elec;.tric Power Industry
17      Reform  Act  of  2001,  as  amended,`  shall  exercise  oversigh,t  powers  over  the
18      implementation of this Act.
19 `          ,t     SECTION  27.  Sepczra.b{Zity czctz4se.,-If for any rea~s6n,  any provision of
20    . this Act  is  declared  uncon§titution`al'or  invalid,  the  othei  parts  or  provisiohs.`
21      her`eofwhich 'are not affected thereby shall continue to be ih full force and effec.t.
2                  SECTIQ.N  28..Rep?`az€nd  czouse.  -Sections  1  and  2  of Executive  order
3      No.  172, ``Creating the Energy F,egulatory Board" are hereby repealed.  Sections
.
4    , 38, 39, 40, 41 and 42 of Republic`Act No. 9136, otherwise known as the ``Electric
5      Power Industry Reform Act of 2do1," are hereby alnended.accordingly.
A111aws.;i:.decrees, orders, rules and regulations or parts therpof which are
inconsistent,with or contrary to the provisions of this Act are hereby repealed or
I,
anended accordingly.
SECTION  29.  E/Tectiutty.  -This  Act  shall  take  effect. fifteen  (15)  days
following  its  pubiica`tion  in  the  Official  Gazette  or .in  a  newspaper  of general
'.
circulation.
Approved,