Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 855 
Introduced by 
PhilRECA Party-List Representative Presley C. De Jesus 
EXPLANATORY NOTE 
The enactment of Republic Act No. 9136, otherwise known as the Electric 
Power Industry Reform Act of 2001 (EPIRA), marked a significant milestone in 
the liberalization of the Philippine electric power industry. Among the major 
reforms introduced by EPIRA is the establishment of the Energy Regulatory 
Commission (ERC), envisioned to be an independent regulator that ensures fair 
and transparent competition, protects the interests of consumers, and promotes 
efficiency and reliability within the energy sector.  
Over two decades since the passage of EPIRA, the energy landscape has 
evolved significantly, marked by increasing demand and a more complex and 
competitive market structure. However, gaps and challenges persist in the 
capacity of the ERC as a regulator, including constraints in its organizational 
structure, resource utilization, technical competence, and safeguards for its 
independence and accountability.  
This proposed measure seeks to address these longstanding challenges by 
restructuring and reforming the ERC to establish a strong, independent, 
transparent, and accountable regulatory body capable of fulfilling its critical 
mandate.  
Among the salient features of this bill are: 
•
The reconstitution of the ERC as an independent, quasi-judicial, and rule-
making body with clear safeguards to uphold its accountability and
integrity;
•
The authority for the ERC to utilize fifty percent (50%) of its revenues
generated from fees, assessments, licenses, and other charges to
strengthen its institutional capacity and enhance its operational efficiency;
July 1, 2025
2:30 pm


•
The expansion of the Commission’s composition to eight (8) members and
a Chairperson, with clear qualifications, security of tenure, and
restrictions to ensure impartiality and prevent conflicts of interest;
•
The creation of new divisions and the adoption of an adjusted
compensation structure to attract and retain highly competent personnel;
•
Provisions for continuous capacity building to enhance the technical
competence of ERC staff;
•
Clear procedures for the conduct of regular, summary, and administrative
proceedings, including the imposition of fines and penalties and the option
to enter a plea of nolo contendere; and
•
Strong safeguards to protect and promote the interests of electricity
consumers.
This bill was filed and deliberated upon in the 19th Congress and was
approved by the House of Representatives on Third Reading. This representation 
is re-filing this measure to continue to push for much-needed institutional 
reforms to carry out THE reforms to strengthen and make the ERC more 
effective. 
In view of the foregoing, the immediate passage of this measure is earnestly 
sought. 
REP. PRESLEY C. DE JESUS 
PhilRECA Party-List  


Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 855 
Introduced by 
PhilRECA Party-List Representative Presley C. De Jesus 
AN ACT 
RESTRUCTURING THE ENERGY REGULATORY COMMISSION, AMENDING 
FOR THE PURPOSE SECTIONS 38, 39, 40, 41, 42, 43, 44, AND 46 OF 
REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE “ELECTRIC POWER 
INDUSTRY REFORM ACT OF 2001”  
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 “ERC Reform 
1 
Act.” 
2 
SEC. 2. Declaration of Policy. - The State recognizes the significant role 
3 
of the Energy Regulatory Commission in: 
4 
(a) Ensuring transparent and reasonable prices of electricity;
5 
(b) Protecting the consumers affected by the rates and services of electric
6 
utilities and other providers of electric power; and
7 
(c) Promoting competition, encouraging market development and ensuring
8 
customer choice, and penalizing abuse of market power in the
9 
restructured power industry.
10 
To this end, the State shall: 
11 
(a) Establish a strong, independent, transparent, and accountable regulatory
12 
body; and
13 


 
 
 
(b) Ensure the efficient and effective performance of the functions and 
1 
mandates of the regulatory body to promote market competition in the 
2 
electric power industry. 
3 
 
SEC. 3. Section 38 of Republic Act (RA) No. 9136 is hereby amended, to 
4 
read as follows: 
5 
“SEC. 38. [Creation of the Energy Regulatory Commission.] – 
6 
[There is hereby created an independent, quasi-judicial regulatory 
7 
body to be named the Energy Regulatory Commission (ERC). For this 
8 
purpose, the existing Energy Regulatory Board (ERB) created under 
9 
Executive Order No. 172, as amended, is hereby abolished. 
10 
The Commission shall be composed of a Chairman and four (4) 
11 
members to be appointed by the President of the Philippines. The 
12 
Chairman and the members of the Commission shall be natural-born 
13 
citizens and residents of the Philippines, persons of good moral 
14 
character, at least thirty-five (35) years of age, and of recognized 
15 
competence in any of the following fields: energy, law, economics, 
16 
finance, commerce, or engineering, with at least three (3) years actual 
17 
and 
distinguished 
experience 
in 
their 
respective 
fields 
of 
18 
expertise: Provided, That out of the four (4) members of the 
19 
Commission, at least one (1) shall be a member of the Philippine Bar 
20 
with at least ten (10) years experience in the active practice of law, and 
21 
one (1) shall be a certified public accountant with at least ten (10) years 
22 
experience in active practice. 
23 
Within three (3) months from the creation of the ERC, the 
24 
Chairman shall submit for the approval by the President of the 
25 
Philippines the new organizational structure and plantilla positions 
26 
necessary to carry out the powers and functions of the ERC.  
27 
The Chairman of the Commission, who shall be a member of the 
28 
Philippine Bar, shall act as the Chief Executive Officer of the 
29 
Commission. 
30 
All members of the Commission shall have a term of seven (7) 
31 
years: Provided, That for the first appointees, the Chairman shall hold 
32 


 
 
 
office for seven (7) years, two (2) members shall hold office for five (5) 
1 
years and the other two (2) members shall hold office for three (3) 
2 
years: Provided, further, That appointment to any future vacancy shall 
3 
only be for the unexpired term of the predecessor: Provided, 
4 
finally, That there shall be no reappointment and in no case shall any 
5 
member serve for more than seven (7) years in the Commission. 
6 
The Chairman and members of the Commission shall assume 
7 
office at the beginning of their terms: Provided, That, if upon the 
8 
effectivity of this Act, the Commission has not been constituted and 
9 
the new staffing pattern and plantilla positions have not been approved 
10 
and filled-up, the current Board and existing personnel of ERB shall 
11 
continue to hold office. 
12 
The existing personnel of the ERB, if qualified, shall be given 
13 
preference in the filling up of plantilla positions created in the ERC, 
14 
subject to existing civil service rules and regulations. 
15 
Members of the Commission shall enjoy security of tenure and 
16 
shall not be suspended or removed from office except for just cause as 
17 
specified by law. 
18 
The Chairman and members of the Commission or any of their 
19 
relatives within the fourth civil degree of consanguinity or affinity, 
20 
legitimate or common law, shall be prohibited from holding any 
21 
interest whatsoever, either as investor, stockholder, officer or director, 
22 
in any company or entity engaged in the business of transmitting, 
23 
generating, supplying or distributing any form of energy and must, 
24 
therefore, divest through sale or legal disposition of any and all 
25 
interests in the energy sector upon assumption of office. 
26 
The presence of at least three (3) members of the Commission 
27 
shall constitute a quorum and the majority vote of two (2) members in 
28 
a meeting where a quorum is present shall be necessary for the 
29 
adoption of any rule, ruling, order, resolution, decision or other act of 
30 
the 
Commission 
in 
the 
exercise 
of 
its 
quasi-judicial 
31 
functions: Provided, That in fixing rates and tariffs, an affirmative vote 
32 
of three (3) members shall be required.] 
33 


 
 
 
REFORM AND RESTRUCTURING OF THE ENERGY REGULATORY 
1 
COMMISSION. – THE ENERGY REGULATORY COMMISSION (ERC) 
2 
IS 
HEREBY 
RECONSTITUTED 
AS 
AN 
INDEPENDENT, 
3 
ACCOUNTABLE, 
QUASI-JUDICIAL, 
AND 
RULE-MAKING 
4 
REGULATORY BODY, WITH POWERS TO PROMULGATE AND 
5 
ENFORCE 
RULES 
AND 
REGULATIONS 
TO 
EFFECTIVELY 
6 
IMPLEMENT THE PROVISIONS OF THE EPIRA. TO THIS END, THE 
7 
ERC 
SHALL 
BE 
EXCLUSIVELY 
RESPONSIBLE 
FOR 
THE 
8 
REGULATION OF THE ELECTRIC POWER INDUSTRY. 
9 
THE COMMISSION SHALL, IN ADDITION TO ITS YEARLY 
10 
APPROPRIATION UNDER THE GENERAL APPROPRIATIONS ACT 
11 
(GAA), BE ALLOWED TO USE FOR THE FOLLOWING YEAR FIFTY 
12 
PERCENT (50%) OF ITS REVENUES GENERATED FROM THE 
13 
COLLECTION OF FEES, ASSESSMENTS, LICENSES, AND OTHER 
14 
CHARGES.  
15 
THE 
SAID 
AMOUNT 
SHALL 
BE 
UTILIZED 
IN 
THE 
16 
FOLLOWING MANNER: 
17 
A. TEN PERCENT (10%) OF SUCH INCOME SHALL BE USED TO 
18 
AUGMENT THE ERC’S CAPITAL OUTLAY BUDGET; 
19 
B. SIXTY PERCENT (60%) OF SUCH INCOME SHALL BE USED 
20 
TO AUGMENT THE ERC’S MAINTENANCE AND OTHER 
21 
OPERATING EXPENSES (MOOE) BUDGET; AND 
22 
C. THIRTY PERCENT (30%) OF SUCH INCOME SHALL BE USED 
23 
TO AUGMENT THE ERC’S PERSONNEL SERVICE (PS) 
24 
BUDGET, INTENDED TO AUGMENT THE BENEFITS OF THE 
25 
ERC OFFICERS, PERSONNEL AND STAFF EXCEPT FOR THE 
26 
CHAIRPERSON AND MEMBERS OF THE COMMISSION.  
27 
THE 
ERC 
MAY, 
SUBJECT 
TO 
THE 
ISSUANCE 
OF 
28 
APPROPRIATE RULES AND REGULATIONS, REVIEW AND REVISE 
29 
THE ABOVE ALLOCATION FOR ITEMS (A) AND (B) AS IT MAY 
30 
DEEM NECESSARY IN THE PERFORMANCE OF ITS MANDATE 
31 
UNDER THIS ACT, SUBJECT TO THE EXISTING ACCOUNTING AND 
32 
AUDITING PROCEDURES. IN CASE THE ERC FAILS TO FULLY 
33 


 
 
 
UTILIZE THE REVENUES MENTIONED HEREIN, THE UNUTILIZED 
1 
AMOUNT SHALL REVERT TO THE NATIONAL TREASURY.  
2 
THE 
CHAIRPERSON 
SHALL 
SUBMIT 
THE 
3 
ORIGANIZATIONAL STRUCTURE AND STAFFING PATTERN OF 
4 
THE ERC TO THE DEPARTMENT OF BUDGET AND MANAGEMENT 
5 
FOR ITS EVALUATION AND RECOMMENDATION FOR THE 
6 
APPROVAL OF THE PRESIDENT OF THE PHILIPPINES, WITHIN 
7 
THREE (3) MONTHS FROM THE EFFECTIVITY OF THIS ACT. 
8 
THE COMMISSION SHALL CONDUCT AN ASSESSMENT OF 
9 
THE FITNESS OF THE SKILLS AND CAPABILITIES OF EXISTING 
10 
PERSONNEL. ON THE BASIS OF THE RESULTS OF SUCH 
11 
ASSESSMENT, THE COMMISSION MAY IMPLEMENT SUCH 
12 
MOVEMENT 
IN 
PERSONNEL 
TO 
ESTABLISH 
THE 
NEW 
13 
ORGANIZATIONAL 
STRUCTURE, 
IN 
ACCORDANCE 
WITH 
14 
APPLICABLE 
LAWS, 
ALIGNED 
WITH 
THE 
PERSONNEL’S 
15 
CAPACITY AND PERFORMANCE: PROVIDED, THAT THE NEW 
16 
POSITION TO WHICH THEY SHALL BE TRANSFERRED WILL BE 
17 
OF THE SAME RANK AND SALARY AS THAT OF THEIR PREVIOUS 
18 
POSITION. AFFECTED EMPLOYEES MAY OPT FOR VOLUNTARY 
19 
SEPARATION FROM THE SERVICE WITHIN SIX (6) MONTHS FROM 
20 
THE EFFECTIVITY OF THIS ACT AND SHALL BE ENTITLED TO 
21 
RECEIVE SEPARATION AND EARLY RETIREMENT BENEFITS AND 
22 
OTHER BENEFITS UNDER APPLICABLE LAWS AND ISSUANCES 
23 
WITHIN 
NINETY 
(90) 
DAYS 
FROM 
THE 
DATE 
OF 
THE 
24 
EFFECTIVITY OF THEIR SEPARATION FROM SERVICE. 
25 
THE 
ERC 
SHALL 
REASSESS 
ITS 
ORGANIZATIONAL 
26 
STRUCTURE EVERY FIVE (5) YEARS FROM THE EFFECTIVITY OF 
27 
THIS ACT, OR EARLIER AS NECESSARY, TO DETERMINE IF 
28 
THERE IS A NEED FOR FURTHER RESTRUCTURING OR 
29 
REORGANIZATION, 
WHICH 
MAY 
INCLUDE 
ADDITIONAL 
30 
SERVICES, DIVISIONS OR PERSONNEL.” 
31 
 
SEC. 4. New sections 38(A), 38(B), 38(c), 38(D), 38(D-1), 38(D-2), 38(E), 
38(F), 38(G) are hereby inserted in RA No. 9136 to read as follows: 


 
 
 
 
“SEC. 
38(A). 
COMPOSITION 
AND 
QUALIFICATIONS 
1 
REQUIREMENTS – THE COMMISSION SHALL BE COMPOSED OF 
2 
A CHAIRPERSON AND EIGHT (8) MEMBERS. THE CHAIRPERSON 
3 
AND 
THE 
MEMBERS 
OF 
THE 
COMMISSION 
SHALL 
BE 
4 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES AND 
5 
SHALL SERVE A TERM OF SEVEN (7) YEARS: PROVIDED, THAT 
6 
THE CURRENT CHAIRPERSON AND MEMBERS WHO HAVE BEEN 
7 
APPOINTED PRIOR TO THE EFFECTIVITY OF THIS ACT SHALL 
8 
CONTINUE TO PERFORM THEIR FUNCTIONS UNTIL THE 
9 
COMPLETION OF THEIR TERM: PROVIDED, FURTHER, THAT THE 
10 
MEMBERS WHO SHALL BE APPOINTED IN ADDITION TO THE 
11 
CURRENT MEMBERS SHALL SERVE ON A STAGGERED BASIS, 
12 
WITH THE FIRST AND SECOND MEMBERS TO BE APPOINTED 
13 
SERVING FOR A TERM OF SEVEN (7) YEARS, AND THE THIRD 
14 
AND FOURTH MEMBERS TO BE APPOINTED SERVING FOR A 
15 
TERM OF FIVE (5) YEARS: PROVIDED, FURTHERMORE, THAT 
16 
APPOINTMENT TO ANY FUTURE VACANCY SHALL ONLY BE FOR 
17 
THE UNEXPIRED TERM OF THE PREDECESSOR: PROVIDED, 
18 
FINALLY, THAT THERE SHALL BE NO REAPPOINTMENT AND IN 
19 
NO CASE SHALL ANY MEMBER SERVE FOR MORE THAN SEVEN 
20 
(7) YEARS IN THE COMMISSION.  
21 
THE 
CHAIRPERSON 
AND 
THE 
MEMBERS 
OF 
THE 
22 
COMMISSION 
SHALL 
BE 
NATURAL-BORN 
CITIZENS 
AND 
23 
RESIDENTS OF THE PHILIPPINES, PERSONS OF GOOD MORAL 
24 
CHARACTER, AT LEAST FORTY-FIVE (45) YEARS OF AGE, OF 
25 
RECOGNIZED PROBITY AND COMPETENCE, IN GOOD STANDING, 
26 
AND 
WITH 
EXTENSIVE 
FAMILIARITY 
IN 
ANY 
OF 
THE 
27 
FOLLOWING FIELDS: ENERGY, LAW, ECONOMICS, FINANCE, 
28 
COMMERCE, ENGINEERING, WITH AT LEAST TEN (10) YEARS OF 
29 
ACTUAL AND ACTIVE EXPERIENCE IN THEIR RESPECTIVE 
30 
FIELDS OF EXPERTISE, AND IN GENERATION, TRANSMISSION, 
31 
DISTRIBUTION AND/OR RETAIL SUPPLY OPERATIONS OF THE 
32 
PHILIPPINE ELECTRIC POWER INDUSTRY: PROVIDED, THAT: (A) 
33 


 
 
 
THE CHAIRPERSON SHALL BE A MEMBER OF THE PHILIPPINE 
1 
BAR OR A LICENSED ENGINEER; AND (B) AMONG THE EIGHT (8) 
2 
MEMBERS OF THE COMMISSION, AT LEAST ONE (1) MEMBER 
3 
SHALL BE A CERTIFIED PUBLIC ACCOUNTANT, ONE (1) MEMBER 
4 
SHALL BE A LICENSED ENGINEER, AND ONE (1) MEMBER SHALL 
5 
BE AN ECONOMIST.”  
6 
“SEC. 38(B). SECURITY OF TENURE. - THE CHAIRPERSON 
7 
AND THE MEMBERS OF THE COMMISSION SHALL ENJOY 
8 
SECURITY OF TENURE AND SHALL NOT BE SUSPENDED OR 
9 
REMOVED FROM OFFICE EXCEPT FOR JUST CAUSE AS 
10 
SPECIFIED BY LAW.” 
11 
“SEC. 38(C). PROHIBITIONS. - THE CHAIRPERSON AND 
12 
MEMBERS OF THE COMMISSION, WITHIN THE DURATION OF 
13 
THEIR TERM, ARE HEREBY PROHIBITED FROM: (A) TAKING UP 
14 
ANY EMPLOYMENT OR CONSULTANCY ARRANGEMENT WITH 
15 
ANY ELECTRIC POWER INDUSTRY PARTICIPANT; (B) HOLDING 
16 
ANY COMMERCIAL OR ANY PECUNIARY INTEREST IN ANY 
17 
ELECTRIC POWER INDUSTRY PARTICIPANT IN ANY CAPACITY; 
18 
(C) HOLDING ANY OTHER OFFICE OR EMPLOYMENT; AND (D) 
19 
DIRECTLY OR INDIRECTLY PRACTICING ANY PROFESSION, 
20 
PARTICIPATING IN ANY BUSINESS, OR BE FINANCIALLY 
21 
INTERESTED IN ANY CONTRACT WITH, OR ANY FRANCHISE, OR 
22 
SPECIAL PRIVILEGES GRANTED BY THE GOVERNMENT OR ANY 
23 
SUBDIVISION, AGENCY, OR INSTRUMENTALITY THEREOF, 
24 
INCLUDING 
GOVERNMENT-OWNED 
AND 
CONTROLLED 
25 
CORPORATIONS (GOCCS) OR THEIR SUBSIDIARIES. WITHIN 
26 
THREE (3) YEARS FROM CESSATION OF THEIR SERVICE, THE 
27 
CHAIRPERSON AND THE MEMBERS OF THE COMMISSION ARE 
28 
HEREBY PROHIBITED FROM: (A) RUNNING FOR OFFICE IN THE 
29 
ELECTION; (B) TAKING UP ANY EMPLOYMENT OR CONSULTANCY 
30 
ARRANGEMENT WITH ANY ELECTRIC POWER INDUSTRY 
31 
PARTICIPANT; 
AND 
(C) 
PERSONALLY 
APPEARING 
OR 
32 
PRACTICING AS COUNSEL OR AGENT ON ANY MATTER PENDING 
33 
BEFORE THE COMMISSION. 
34 


 
 
 
DURING 
THE 
INCUMBENCY 
OF 
CHAIRPERSON 
OR 
1 
MEMBER OF THE COMMISSION, ANY RELATIVE WITHIN THE 
2 
FOURTH CIVIL DEGREE OF CONSANGUINITY OR AFFINITY, 
3 
LEGITIMATE OR COMMON LAW, SHALL BE PROHIBITED FROM:  
4 
A. TAKING 
UP 
ANY 
EMPLOYMENT 
OR 
CONSULTANCY 
5 
ARRANGEMENT WITH AN ELECTRIC POWER INDUSTRY 
6 
PARTICIPANT; 
7 
B. HOLDING 
ANY 
COMMERCIAL 
OR 
ANY 
PECUNIARY 
8 
INTEREST 
IN 
ANY 
ELECTRIC 
POWER 
INDUSTRY 
9 
PARTICIPANT, IN ANY CAPACITY; AND 
10 
C. APPEARING AS COUNSEL OR AGENT ON ANY MATTER 
11 
PENDING BEFORE THE COMMISSION OR TRANSACTING 
12 
BUSINESS 
DIRECTLY 
OR 
INDIRECTLY 
THEREIN: 
13 
PROVIDED, THAT THIS PROHIBITION SHALL CONTINUE 
14 
WITHIN THREE (3) YEARS FROM CESSATION OF SERVICE 
15 
OF THE CONCERNED CHAIRPERSON OR MEMBER OF THE 
16 
COMMISSION.” 
17 
“SEC. 38(D). DUTIES AND RESPONSIBILITIES OF THE 
18 
CHAIRPERSON 
AND 
CHIEF 
EXECUTIVE 
OFFICER. 
- 
THE 
19 
CHAIRPERSON OF THE COMMISSION, ACTING AS THE CHIEF 
20 
EXECUTIVE OFFICER, SHALL HAVE THE FOLLOWING POWERS, 
21 
FUNCTIONS AND DUTIES:  
22 
A. TO 
EXECUTE, 
ADMINISTER 
AND 
IMPLEMENT 
THE 
23 
POLICIES AND MEASURES APPROVED AND ADOPTED BY 
24 
THE COMMISSION; 
25 
B. TO SERVE AS HEAD OF AGENCY AND DIRECTLY 
26 
ADMINISTER AND SUPERVISE THE OPERATIONS AND DAY-
27 
TO-DAY BUSINESS ACTIVITIES OF THE COMMISSION; 
28 
C. TO REPRESENT THE COMMISSION IN ALL DEALINGS WITH 
29 
OFFICES, AGENCIES, AND INSTRUMENTALITIES OF THE 
30 
GOVERNMENT, AND WITH ALL PERSONS AND ENTITIES, 
31 
PUBLIC OR PRIVATE, DOMESTIC OR FOREIGN, UNLESS 
32 
OTHERWISE DIRECTED BY THE COMMISSION; 
33 


 
 
 
D. TO EXECUTE, ON BEHALF OF THE COMMISSION, ALL 
1 
CONTRACTS, AGREEMENTS AND OTHER INSTRUMENTS 
2 
AFFECTING 
THE 
INTERESTS 
OF 
THE 
ERC 
DULY 
3 
APPROVED BY THE COMMISSION; 
4 
E. TO DIRECT AND SUPERVISE THE PREPARATION OF THE 
5 
AGENDA FOR THE MEETINGS OF THE COMMISSION EN 
6 
BANC;  
7 
F. TO PRESIDE AT THE MEETINGS OF THE COMMISSION EN 
8 
BANC AND THE DIVISION TO WHICH THEY ARE A 
9 
MEMBER;  
10 
G. TO ORDER THE IMPLEMENTATION OF TEMPORARY PRICE 
11 
MITIGATION 
MEASURES 
TO 
PROTECT 
CONSUMER 
12 
INTERESTS, SUCH AS MARKET SUSPENSION, PAYMENT 
13 
DEFERRAL, SUSPENSION OF DISCONNECTION, AND SUCH 
14 
OTHER MEASURES THAT MAY BE APPROVED BY THE 
15 
COMMISSION, DURING THE EXISTENCE OF OR DURATION 
16 
OF A CALAMITY OR EMERGENCY, AND UNDER SUCH 
17 
CONDITIONS AS MAY BE DETERMINED BY LAW OR THE 
18 
GUIDELINES TO BE ISSUED BY THE COMMISSION: 
19 
PROVIDED, THAT A FORMAL DECLARATION OF CALAMITY 
20 
OR EMERGENCY HAS BEEN ISSUED BY THE RELEVANT 
21 
NATIONAL 
GOVERNMENT 
AGENCY 
OR 
LOCAL 
22 
GOVERNMENT UNIT: PROVIDED, FURTHER, THAT THE 
23 
IMPLEMENTATION OF TEMPORARY PRICE MITIGATION 
24 
MEASURES 
SHALL 
BE 
SUBJECT 
TO 
SUBSEQUENT 
25 
CONFIRMATION BY THE COMMISSION EN BANC. 
26 
H. TO EXERCISE THE POWER TO APPOINT OFFICIALS WITH 
27 
THE RANK OF DIVISION CHIEF AND BELOW; AND 
28 
I. TO EXERCISE SUCH OTHER POWERS, FUNCTIONS AND 
29 
DUTIES AS MAY BE ASSIGNED TO HIM OR HER BY THE 
30 
COMMISSION.” 
31 
“SEC. 38(D-1). DUTIES AND RESPONSIBILITIES OF THE 
32 
MEMBERS OF THE COMMISSION. – IN ADDITION TO THE 
33 


 
 
 
FUNCTIONS ENUMERATED IN RA NO. 9136, THE MEMBERS OF 
1 
THE COMMISSION SHALL:  
2 
A. REGULARLY ATTEND AND ACTIVELY PARTICIPATE IN THE 
3 
MEETINGS OF THE COMMISSION EN BANC OR DIVISION 
4 
WHERE ANY CASE, ISSUE OR MATTER WITHIN ITS 
5 
JURISDICTION IS UNDER CONSIDERATION;  
6 
B. RECOMMEND TO THE CHAIRPERSON OR PRESIDING 
7 
COMMISSIONER THE INCLUSION IN THE AGENDA OF ANY 
8 
CASE, ISSUE OR MATTER DEEMED APPROPRIATE IN THE 
9 
PERFORMANCE OF THE COMMISSION’S FUNCTIONS; 
10 
C. CONDUCT HEARINGS IN THE AFFECTED AREAS, IF 
11 
NECESSARY, AND THOROUGHLY ANALYZE CASES, ISSUES 
12 
AND MATTERS PENDING BEFORE THE COMMISSION EN 
13 
BANC OR DIVISION; 
14 
D. TAKE PART IN CONTINUOUS EDUCATION AND CAPACITY 
15 
BUILDING PROGRAMS OF THE COMMISSION TO ENHANCE 
16 
TECHNICAL COMPETENCE;  
17 
E. REFRAIN FROM ACTS WHICH UNDULY INFLUENCE, 
18 
IMPEDE, OR HAMPER THE EFFECTIVE FULFILMENT OF 
19 
DUTIES AND RESPONSIBILITIES OF ANY OFFICIAL OF THE 
20 
COMMISSION; 
21 
F. REVIEW AND ACT ON THE ENDORSEMENT OF THE 
22 
PROPOSED ERC BUDGET; AND 
23 
G. TIMELY PERFORM IN GOOD FAITH AND TO THE BEST OF 
24 
HIS OR HER ABILITY THE DUTIES AND RESPONSIBILITIES 
25 
PROVIDED HEREIN.” 
26 
“SEC. 
38(D-2). 
FUNCTIONS 
OF 
THE 
PRESIDING 
27 
COMMISSIONER. EACH DIVISION SHALL HAVE A PRESIDING 
28 
COMMISSIONER, 
WHO 
SHALL 
BE 
THE 
MOST 
SENIOR 
29 
COMMISSIONER IN ACCORDANCE WITH THEIR DATE OF 
30 
APPOINTMENT: PROVIDED, THAT THE CHAIRPERSON SHALL BE 
31 
CONSIDERED AS THE MOST SENIOR IN THE COMMISSION.  
32 
THE 
POWERS 
AND 
DUTIES 
OF 
THE 
PRESIDING 
33 
COMMISSIONER, WHEN DISCHARGING HIS OR HER FUNCTIONS 
34 


 
 
 
IN CASES PENDING BEFORE THE DIVISION, SHALL BE AS 
1 
FOLLOWS: 
2 
A. TO ISSUE CALLS FOR THE SESSIONS OF THE DIVISION; 
3 
B. TO DIRECT AND SUPERVISE THE PREPARATION OF THE 
4 
AGENDA FOR THE MEETINGS OF THE DIVISION; 
5 
C. TO PRESIDE OVER THE SESSIONS OF THE DIVISION; 
6 
D. TO PRESERVE ORDER AND DECORUM DURING THE 
7 
SESSIONS OF THE DIVISION; 
8 
E. TO SIGN INTERLOCUTORY ORDERS IN CASES ALREADY 
9 
ASSIGNED TO THE DIVISION; 
10 
F. TO DECIDE ALL QUESTIONS OF ORDER, SUBJECT TO 
11 
APPEAL TO THE COMMISSION EN BANC, AS MAY BE 
12 
PROVIDED UNDER THIS ACT; AND 
13 
G. TO TAKE SUCH OTHER MEASURES AS HE OR SHE MAY 
14 
DEEM PROPER UPON CONSULTATION WITH THE OTHER 
15 
MEMBERS OF THE DIVISION.” 
16 
“SEC. 38(E). CREATION OF NEW DIVISIONS.  – THE 
17 
COMMISSION SHALL BE DIVIDED INTO THREE (3) DIVISIONS, 
18 
WITH 
THREE 
(3) 
MEMBERS 
EACH, 
INCLUDING 
THE 
19 
CHAIRPERSON. THE PRESENCE OF AT LEAST TWO (2) OF THE 
20 
(3) MEMBERS OF THE DIVISION SHALL CONSTITUTE A QUORUM, 
21 
AND THE MAJORITY VOTE AT LEAST TWO (2) MEMBERS OF THE 
22 
DIVISION IN WHICH A QUORUM IS PRESENT SHALL BE 
23 
NECESSARY FOR THE ADOPTION OF ANY RULING, ORDER, 
24 
RESOLUTION, 
DECISION 
OR 
OTHER 
ACTS 
OF 
THE 
25 
COMMISSION.” 
26 
“SEC. 38(F). QUORUM. – AT LEAST FIVE (5) MEMBERS OF 
27 
THE ERC SHALL CONSTITUTE A QUORUM IN THE COMMISSION 
28 
EN BANC. THE CHAIRPERSON SHALL BE THE PRESIDING 
29 
OFFICER DURING A COMMISSION EN BANC HEARING. IN THE 
30 
ABSENCE OF THE CHAIRPERSON, THE MOST SENIOR MEMBER 
31 
AMONG THE COMMISSIONERS PRESENT SHALL SERVE AS THE 
32 
PRESIDING OFFICER. A VALID DECISION OF THE COMMISSION 
33 


 
 
 
EN BANC SHALL BE CONCURRED IN BY THE MAJORITY OF THE 
1 
MEMBERS CONSTITUTING A QUORUM.” 
2 
SUBJECT TO SECTION 44 OF THIS ACT, THE COMMISSION 
3 
EN BANC SHALL ACT PRIMARILY ON THE FOLLOWING CASES: 
4 
A. CASES INVOLVING THE ERC’S POWER TO PROMULGATE 
5 
RULES OR REGULATIONS; 
6 
B. CASES INVOLVING CAPITAL EXPENDITURES WITH A 
7 
GROSS 
VALUE 
OF 
ONE 
BILLION 
PESOS 
(₱ 
8 
1,000,000,000.00) AND ABOVE; 
9 
C. CASES 
INVOLVING 
THE 
PERFORMANCE 
AND 
10 
OPERATIONS, AND THE SETTING OF RETAIL RATES OF 
11 
THE NATIONAL TRANSMISSION CORPORATION (TRANSCO) 
12 
OR 
ITS 
AUTHORIZED 
CONCESSIONAIRE, 
AND 
OF 
13 
DISTRIBUTION UTILITIES, AS MAY BE APPLICABLE; 
14 
D. REVIEW OF CASES DECIDED BY A DIVISION OF THE ERC 
15 
IN THE EVENT THERE IS A CONFLICTING DECISION BY 
16 
ANOTHER DIVISION;  
17 
E. APPOINTMENTS OF OFFICIALS WITH THE RANK OF 
18 
DIRECTOR AND ABOVE; AND  
19 
F. OTHER CASES AS MAY BE DETERMINED BY THE 
20 
COMMISSION EN BANC ITSELF.” 
21 
“SEC. 
38(G). 
CODE 
OF 
CONDUCT 
AND 
ETHICAL 
22 
STANDARDS. – THE CHAIRPERSON AND THE MEMBERS OF THE 
23 
ERC SHALL CONFORM TO THE CODE OF CONDUCT AND 
24 
ETHICAL STANDARDS AS SPECIFIED IN RA NO. 6713.” 
25 
SEC. 5. Section 39 of RA No. 9136 is hereby amended to read as follows: 
26 
“Sec. 39. ADJUSTED Compensation STRUCTURE and Other 
27 
Emoluments for ERC Personnel. – The compensation and other 
28 
emoluments for the {Chairman] CHAIRPERSON and members of the 
29 
Commission and the ERC personnel shall be exempted from the 
30 
coverage of Republic Act No. 6758, otherwise known as the “Salary 
31 
Standardization Act,” AS AMENDED BY EXECUTIVE ORDER NO. 
32 
201, SERIES OF 2016.  
33 
x x x 
34 


 
 
 
The 
[Chairman] 
CHAIRPERSON 
and 
members 
of 
the 
1 
Commission shall [initially] be entitled to the same [salaries,] 
2 
allowances and benefits [as those of the Presiding Justice and 
3 
Associate Justices of the Supreme Court, respectively] PRESENTLY 
4 
RECEIVED: PROVIDED, THAT UPON SERVING AT LEAST FIVE (5) 
5 
YEARS OF THEIR TERMS AND UPON REACHING THE AGE OF 
6 
SIXTY-FIVE (65) YEARS OLD, the [Chairman] CHAIRPERSON and 
7 
the members of the Commission shall [upon completion of their term 
8 
or upon becoming] BE CONSIDERED eligible for retirement. [under 
9 
existing laws AND be entitled to the same retirement benefits and 
10 
privileges provided for the Presiding Justice and Associate Justices of 
11 
the Supreme Court, respectively].  
12 
THE COMPENSATION SCHEDULE OF THE PERSONNEL 
13 
SHALL BE COMPETITIVE WITH THE SALARY RANGE OF OTHER 
14 
REGULATORY 
AGENCIES, 
AND 
THE 
ELECTRIC 
POWER 
15 
INDUSTRY 
STAKEHOLDERS. 
FOR 
THIS 
PURPOSE, 
THE 
16 
COMMISSION EN BANC SHALL, SUBJECT TO THE APPROVAL OF 
17 
THE 
PRESIDENT 
OF 
THE 
PHILIPPINES, 
ADJUST 
THE 
18 
COMPENSATION SCHEDULE AND BENEFITS OF ERC PERSONNEL 
19 
ONCE EVERY TWO (2) YEARS TO ENSURE THAT THE SAME IS 
20 
COMPARABLE WITH THE COMPENSATION PACKAGE OF OTHER 
21 
REGULATORY 
AGENCIES, 
AND 
THE 
ELECTRIC 
POWER 
22 
INDUSTRY STAKEHOLDERS. 
23 
SEC. 6. Section 40 of RA No. 9136 is hereby amended to read as follows: 
24 
“SEC. 40. Enhancement of Technical Competence. – [The 
25 
ERC shall establish rigorous training programs for its staff for the 
26 
purpose of enhancing the technical competence of the ERC in the 
27 
following areas: evaluation of technical performance and monitoring 
28 
of compliance with service and performance standards, performance-
29 
based rate-setting reform, environmental standards and such other 
30 
areas as will enable the ERC to adequately perform its duties and 
31 
functions.] THE TECHNICAL COMPETENCE OF THE ERC 
32 
PERSONNEL 
SHALL 
BE 
BENCHMARKED 
AGAINST 
33 
INTERNATIONAL BEST PRACTICES. IN VIEW THEREOF, THE 
34 


 
 
 
ERC SHALL ESTABLISH A RIGOROUS AND SUSTAINABLE 
1 
TRAINING PROGRAM THAT WILL ALLOW ITS STAFF TO ACQUIRE 
2 
THE NECESSARY KNOWLEDGE AND SKILLS AT PAR WITH THE 
3 
PERSONNEL OF REGULATORS FROM OTHER JURISDICTIONS 
4 
AND ECONOMIES. 
5 
FOR THIS PURPOSE, THE ERC SHALL ESTABLISH A UNIT 
6 
WITHIN ITS STRUCTURE THAT SHALL DESIGN A STANDARDIZED 
7 
TRAINING AND DEVELOPMENT PROGRAM AND FACILITATE THE 
8 
REGULAR CONDUCT OF NECESSARY TRAINING FOR NEW AND 
9 
INCUMBENT ERC PERSONNEL. 
10 
THE ERC SHALL ALLOT A MAXIMUM OF FIFTEEN 
11 
PERCENT (15%) OF THE REVENUES IT GENERATED FROM THE 
12 
COLLECTION OF FEES, ASSESSMENTS, LICENSES, AND OTHER 
13 
CHARGES FOR THE TRAINING AND UPGRADING OF SKILLS OF 
14 
ITS PERSONNEL. THE AMOUNT SHALL BE TAKEN FROM ITS 
15 
REVENUES RESERVED TO AUGMENT ERC’S BUDGET AS 
16 
PROVIDED UNDER SECTION 38 OF THIS ACT.” 
17 
SEC. 7. Section 41 of RA 9136 is hereby amended to read as follows:  
18 
“SEC. 41. PROTECTION AND Promotion of Consumer 
19 
Interests. – [The ERC shall handle consumer complaints and ensure 
20 
the adequate promotion of consumer interests.] THE ERC SHALL 
21 
ADDRESS AND PROVIDE TIMELY RESOLUTIONS TO CONSUMER 
22 
COMPLAINTS 
AND 
ENSURE 
ADEQUATE 
PROTECTION 
OF 
23 
CONSUMER INTERESTS. 
24 
THE 
ERC 
SHALL 
ESTABLISH 
PROCEDURES 
FOR 
25 
DETERMINING LEGITIMATE REPRESENTATION OF CONSUMER 
26 
ORGANIZATIONS AND THE CONDUCT OF FORUM, WHERE 
27 
CONSUMERS CAN EXPRESS THEIR CONCERNS ON POLICIES AND 
28 
REGULATIONS 
OUTSIDE 
THE 
FORMAL 
RULE-MAKING 
29 
PROCESSES. 
30 
THE ERC SHALL ALSO EXERT EFFORTS TO INFORM 
31 
CONSUMERS OF PENDING PROCEEDINGS. FOR THIS PURPOSE, 
32 
THE ERC SHALL REGULARLY CONDUCT TRAININGS FOR THE 
33 


 
 
 
EFFICIENT HANDLING OF CONSUMER COMPLAINTS BY THE 
1 
DISTRIBUTION UTILITIES’ CONSUMER WELFARE DESK (CWD). 
2 
THE ERC SHALL ALLOCATE AN ANNUAL BUDGET FOR THIS 
3 
PURPOSE. 
4 
A SUPPORT DESK SHALL BE MADE AVAILABLE TO THE 
5 
PUBLIC 
TO 
ASSIST 
CONSUMERS 
FOR 
A 
BETTER 
6 
UNDERSTANDING OF ALL PROCEEDINGS AND ISSUANCES OF 
7 
THE COMMISSION, AS WELL AS ANY AND ALL MATTERS WHICH 
8 
AFFECT THE ELECTRICITY RATES CHARGED TO CONSUMERS: 
9 
PROVIDED, THAT THE INFORMATION IS NOT CONFIDENTIAL IN 
10 
NATURE. EVERY CONSUMER HAS THE RIGHT TO ACCESS 
11 
INFORMATION OF PUBLIC CONCERN, SUBJECT TO THE 
12 
COMMISSION’S GUIDELINES IN THE GRANT AND LIMITATIONS 
13 
OF THIS RIGHT: PROVIDED, FURTHER, THAT ACCESS TO 
14 
INFORMATION SHALL NOT BE GRANTED IF:  
15 
A. THE 
INFORMATION 
IS 
CONSIDERED 
CONFIDENTIAL 
16 
UNDER EXISTING LAWS AND REGULATIONS;  
17 
B. THE INFORMATION IS COVERED BY DELIBERATIVE 
18 
PROCESS PRIVILEGE, OR EXECUTIVE PRIVILEGE; AND 
19 
C. THE INFORMATION REQUESTED PERTAINS TO TRADE 
20 
SECRETS, 
COMPETITIVELY 
SENSITIVE, 
OR 
OTHER 
21 
PROPRIETARY 
INFORMATION, 
WHENEVER 
THE 
22 
REVELATION 
THEREOF 
WOULD 
PREJUDICE 
THE 
23 
INTERESTS OF A NATURAL OR JURIDICAL PERSON IN 
24 
TRADE, 
INDUSTRIAL, 
FINANCIAL, 
OR 
COMMERCIAL 
25 
COMPETITION.” 
26 
SEC. 8. Sections 43 of RA No. 9136 is hereby amended to read as follows: 
27 
“SEC. 43. Functions of the ERC. – The ERC shall promote 
28 
competition, encourage market development, AND ensure customer 
29 
choice and penalize abuse of market power in the restructured 
30 
electricity industry. In appropriate cases, the ERC is authorized to issue 
31 
cease and desist orders after due notice and hearing. Towards this end, 
32 
it shall be responsible for the following key functions in the 
33 
restructured industry:   
34 


 
 
 
x x x  
1 
(b) [Within six (6) months from the effectivity of this Act, 
2 
promulgate], 
REGULARLY 
REVIEW 
AND 
UPDATE 
WHEN 
3 
NECESSARY IN COORDINATION WITH THE DOE, and enforce, in 
4 
accordance with law, [a] THE [National] PHILIPPINE Grid Code and [a] 
5 
THE PHILIPPINE Distribution Code which shall include, but not 
6 
limited to, the following:  
7 
 
x x x 
8 
(i) Allow the TRANSCO OR ITS CONCESSIONAIRE to charge 
9 
user fees for ancillary services to all electric power industry participants 
10 
or self-generating entities connected to the grid. Such fees shall be fixed 
11 
by the ERC after due notice and public hearing; 
12 
 
x x x                     
13 
(q) Act on applications for cost recovery and return on demand 
14 
side management projects. THE ERC SHALL FOLLOW THE TIMELINE 
15 
PROVIDED IN SECTION 13 OF RA NO. 11234, AND FAILURE OF 
16 
THE ERC TO RELEASE ITS ACTION ON THE APPLICATION WITHIN 
17 
THE PRESCRIBED TIME FRAME SHALL DEEM SUCH APPLICATION 
18 
APPROVED; 
19 
(t) x x x; [and] 
20 
x x x 
21 
 
(V) SUMMARILY PUNISH FOR CONTEMPT BY A FINE NOT 
22 
LESS THAN FIVE THOUSAND PESOS (₱5,000.00) BUT NOT 
23 
EXCEEDING ONE HUNDRED THOUSAND PESOS (₱100,000.00) OR 
24 
BY IMPRISONMENT NOT EXCEEDING TEN (10) DAYS, OR BOTH, 
25 
ANY PERSON WHO SHALL OBSTRUCT THE COMMISSION OR ITS 
26 
HEARING OFFICERS WHILE ENGAGED IN THE DISCHARGE OF 
27 
OFFICIAL DUTIES, OR WHO SHALL CONDUCT HIMSELF IN A 
28 
RUDE, DISRESPECTFUL OR DISORDERLY MANNER BEFORE THE 
29 
COMMISSION OR ITS HEARING OFFICERS, WHILE ENGAGED IN 
30 
THE DISCHARGE OF OFFICIAL DUTIES, OR SHALL ORALLY OR IN 
31 
WRITING BE DISRESPECTFUL TO, OFFEND OR INSULT THE 
32 
COMMISSION OR ITS HEARING OFFICERS ON OCCASION OR BY 
33 
REASON OF THE PERFORMANCE OF OFFICIAL DUTIES, GUILTY 
34 


 
 
 
OF ANY ACT INTENDED TO INTERRUPT THE HEARING OR 
1 
SESSION OR ANY PROCEEDING BEFORE THE COMMISSION, OR 
2 
WHEN A PERSON REFUSES TO BE SWORN IN AS A WITNESS OR 
3 
TO ANSWER AS SUCH WHEN LAWFULLY REQUIRED TO DO SO IN 
4 
ANY HEARING, SESSION, OR INVESTIGATION DULY HELD BY THE 
5 
COMMISSION, 
ITS 
MEMBERS 
OR 
REPRESENTATIVES. 
OF 
6 
MISCONDUCT IN THE PRESENCE OF THE COMMISSION, OR ANY 
7 
OF ITS MEMBERS OR REPRESENTATIVES.  
8 
 
TO ENFORCE THE PROVISIONS OF THIS SECTION, THE ERC 
9 
MAY, IF NECESSARY, REQUEST THE ASSISTANCE OF THE 
10 
PHILIPPINE NATIONAL POLICE FOR THE EXECUTION OF ANY 
11 
ORDER MADE FOR SAID PURPOSE. 
12 
 
(W) IN RELATION TO SECTION 6 OF THIS ACT, THE ERC 
13 
SHALL ISSUE A FIXED LIST OF REQUIREMENTS AND ACT ON 
14 
APPLICATIONS OF GENERATING COMPANIES FOR THE ISSUANCE 
15 
OF CERTIFICATES OF COMPLIANCE (COC): PROVIDED, THAT THE 
16 
TIMELINE PROVIDED IN SECTION 13 OF RA NO. 11234 SHALL BE 
17 
OBSERVED, AND FAILURE OF THE ERC TO RELEASE ITS ACTION 
18 
ON THE APPLICATION WITHIN THE PRESCRIBED TIME FRAME 
19 
SHALL DEEM SUCH COC APPLICATION APPROVED; 
20 
 
(X) ENCOURAGE AND ACTIVELY PROMOTE THE USE OF 
21 
ALTERNATIVE DISPUTE RESOLUTION (ADR) IN DEREGULATED 
22 
AREAS OF THE ELECTRIC POWER INDUSTRY AS AN IMPORTANT 
23 
MEANS TO ACHIEVE SPEEDY AND IMPARTIAL JUSTICE, AND 
24 
DECLOG THE DOCKETS OF THE ERC IN ACCORDANCE WITH RA 
25 
NO. 9285, OTHERWISE KNOWN AS THE “ALTERNATIVE DISPUTE 
26 
RESOLUTION ACT OF 2004”. TO THIS END, THE ERC SHALL 
27 
CONDUCT EDUCATIONAL AND INFORMATION ACTIVITIES TO 
28 
EQUIP ADR PRACTITIONERS TO ADDRESS DEREGULATED 
29 
ELECTRIC POWER INDUSTRY DISPUTES; 
30 
 
(Y) TO ORGANIZE AND ADMINISTER THE TRANSMISSION 
31 
GRID RELIABILITY MANAGEMENT COMMITTEE, WHICH SHALL BE 
32 
TASKED TO DEVELOP, IMPROVE AND CONDUCT AUDIT IN 
33 


 
 
 
COMPLIANCE WITH THE GRID CODE AND OTHER RELATED 
1 
ISSUANCES, TO MONITOR AND REPORT TO THE ERC ANY 
2 
VIOLATIONS AGAINST THE TRANSMISSION GRID CODE, TO 
3 
INVESTIGATE 
AND 
PROVIDE 
RESOLUTIONS 
ON 
GRID 
4 
SIGNIFICANT INCIDENTS, AND TO RECOMMEND PENALTIES FOR 
5 
NON-CONFORMANCE AND VIOLATIONS THEREOF; 
6 
 
(Z) TO ORGANIZE AND ADMINISTER THE DISTRIBUTION 
7 
GRID RELIABILITY COMMITTEE, WHICH SHALL BE TASKED TO 
8 
DEVELOP, IMPROVE AND CONDUCT AUDIT IN COMPLIANCE WITH 
9 
DISTRIBUTION RELIABILITY STANDARDS, TO MONITOR AND 
10 
REPORT TO THE ERC ANY VIOLATIONS OF THE DISTRIBUTION 
11 
UTILITIES AGAINST THE DISTRIBUTION GRID CODE, TO 
12 
INVESTIGATE 
AND 
PROVIDE 
RESOLUTIONS 
ON 
GRID 
13 
SIGNIFICANT INCIDENTS, AND TO RECOMMEND PENALTIES FOR 
14 
NON-CONFORMANCE AND VIOLATIONS THEREOF. 
15 
 
All notices of hearings to be conducted by the ERC for the 
16 
purpose of fixing rates or fees shall be published IN at least [twice for 
17 
two successive weeks in two (2) newspapers of nationwide circulation] 
18 
ONE (1) NEWSPAPER OF GENERAL CIRCULATION, AND/OR POST 
19 
ELECTRONICALLY.” 
20 
 
SEC. 9. Section 44 of RA No. 9136 is hereby amended to read as follows: 
21 
“SEC. 44. [Transfer of Powers and Functions. – The powers 
22 
and functions of the Energy Regulatory Board not inconsistent with the 
23 
provisions of this Act are hereby transferred to the ERC. The foregoing 
24 
transfer of powers and functions shall include all applicable funds and 
25 
appropriations, records, equipment, property and personnel as may be 
26 
necessary.]  
27 
NATURE OF THE REGULATORY POWERS OF THE ERC. – IN 
28 
THE PERFORMANCE OF ITS ROLE AS THE INDEPENDENT 
29 
REGULATOR OF THE ELECTRIC POWER INDUSTRY, THE ERC 
30 
SHALL PERFORM QUASI-JUDICIAL, QUASI-LEGISLATIVE, AND 
31 
ADMINISTRATIVE FUNCTIONS. UNLESS ALREADY PROVIDED IN 
32 


 
 
 
THIS ACT, THE ERC SHALL IDENTIFY WHICH AMONG ITS 
1 
FUNCTIONS SHALL BE PERFORMED AND UNDERTAKEN THROUGH 
2 
REGULAR, SUMMARY, AND ADMINISTRATIVE PROCEEDINGS. IT 
3 
SHALL ESTABLISH THE RULES OF PROCEDURE FOR EACH TYPE 
4 
OF 
PROCEEDING 
THAT 
WILL 
PROMOTE 
TRANSPARENCY, 
5 
EXPEDIENCY, CONSISTENCY, AND EFFICIENCY OF SERVICE.” 
6 
“SEC. 44(A). POWER SUPPLY AGREEMENTS. – THE DOE 
7 
SHALL ISSUE THE POLICIES ON THE PROCUREMENT PROCESS 
8 
FOR ANY POWER SUPPLY AGREEMENT WHICH SHALL OBSERVE 
9 
THE 
PRINCIPLES 
OF 
TRANSPARENCY, 
COMPETITIVENESS, 
10 
ACCOUNTABILITY, 
IMPARTIALITY 
AND 
EFFICIENCY. 
THE 
11 
RESULTING POWER SUPPLY AGREEMENTS SHALL EMBODY THE 
12 
PRINCIPLES OF QUALITY, AFFORDABILITY, SUSTAINABILITY AND 
13 
RELIABILITY OF SUPPLY OF ELECTRIC POWER. 
14 
THE ERC SHALL REVIEW AND APPROVE THE POWER SUPPLY 
15 
AGREEMENT IN ACCORDANCE WITH ITS POWERS UNDER 
16 
SECTION 43 (W) OF THIS ACT.”  
17 
“SEC. 44(B). BENCHMARK PRICES AND RATES. – THE ERC 
18 
SHALL DETERMINE THE BENCHMARK FOR THE RANGE OF 
19 
PRICES AND RATES THAT ARE DEEMED REASONABLE FOR BOTH 
20 
THE END-USERS AND THE OPERATIONS OF GENERATION, 
21 
TRANSMISSION, AND DISTRIBUTION ENTITIES.   
22 
LOAD DENSITY, SALES MIX, COST OF SERVICE, DELIVERY 
23 
VOLTAGE, RESOURCE AND FUEL, LOCATION AND OTHER 
24 
TECHNICAL 
FACTORS 
SHALL 
BE 
CONSIDERED 
IN 
THE 
25 
BENCHMARK DETERMINATION. 
26 
THE ERC SHALL PUBLISH THE BENCHMARK PRICES AND 
27 
RATES, WHICH SHALL BE REGULARLY UPDATED.” 
28 
“SEC. 44(C). REGULAR AND SUMMARY PROCEEDINGS IN THE 
29 
ERC. - CASES FILED BEFORE THE ERC, THAT REQUIRE THE 
30 
EXERCISE OF ITS QUASI-JUDICIAL AND ADJUDICATORY, AND 
31 
QUASI-LEGISLATIVE AND RULE-MAKING FUNCTIONS, SHALL BE 
32 


 
 
 
DECIDED 
THROUGH 
REGULAR 
PROCEEDINGS: 
PROVIDED, 
1 
HOWEVER, 
THAT 
CASES 
RELATED 
TO 
CONTRACTS 
OR 
2 
SUBMISSIONS THAT ARE CERTIFIED BY THE DOE PURSUANT TO 
3 
THIS ACT AND WITHIN THE BENCHMARK DETERMINED BY THE 
4 
ERC, INCLUDING POWER SUPPLY AGREEMENTS, SHALL BE 
5 
DECIDED THROUGH SUMMARY PROCEEDINGS, WITHOUT NEED 
6 
OF A HEARING IN ACCORDANCE WITH THE EXERCISE OF THE 
7 
ERC OF ITS POWERS UNDER SECTION 43(W) OF THIS ACT: 
8 
PROVIDED, 
FURTHER, 
THAT 
OTHER 
CONTRACTS 
OR 
9 
SUBMISSIONS THAT ARE NOT SUBJECT TO BENCHMARKING MAY 
10 
BE 
DECIDED 
THROUGH 
SUMMARY 
PROCEEDINGS 
UPON 
11 
DETERMINATION OF THE COMMISSION EN BANC.” 
12 
“SEC. 44(D). ADMINISTRATIVE PROCEEDINGS IN THE ERC. – 
13 
MATTERS THAT REQUIRE THE EXERCISE BY THE ERC OF ITS 
14 
ADMINISTRATIVE FUNCTIONS, AND DOES NOT REQUIRE THE 
15 
EXERCISE 
OF 
THE 
ERC’S 
QUASI-JUDICIAL 
OR 
QUASI-
16 
LEGISLATIVE 
FUNCTIONS, 
SHALL 
BE 
SUBJECT 
TO 
17 
ADMINISTRATIVE PROCEEDINGS. ADMINISTRATIVE MATTERS 
18 
SHALL BE DECIDED BY THE CHAIRPERSON OF THE ERC: 
19 
PROVIDED, THAT THE CHAIRPERSON MAY DELEGATE THIS 
20 
AUTHORITY TO A MEMBER OF THE COMMISSION OR ANY 
21 
OFFICER NOT LOWER THAN THE LEVEL OF A DIRECTOR.  
22 
THE GRANT OF PROVISIONAL APPROVAL FOR PERMITS AND 
23 
LICENSES TO ELECTRIC POWER INDUSTRY PARTICIPANTS SHALL 
24 
BE CONSIDERED AN ADMINISTRATIVE MATTER AND SHALL BE 
25 
DECIDED UPON BY THE CHAIRPERSON: PROVIDED, THAT THE 
26 
GRANT OF PROVISIONAL APPROVAL SHALL BE SUBJECT TO 
27 
SUBSEQUENT CONFIRMATION BY THE COMMISSION EN BANC. 
28 
ADMINISTRATIVE MATTERS SHALL LIKEWISE INCLUDE THE 
29 
FOLLOWING COMPLIANCE SUBMISSIONS BY ELECTRIC POWER 
30 
INDUSTRY PARTICIPANTS: 
31 
I. 
ANNUAL 
OR 
REGULAR 
SUBMISSIONS, 
WHETHER 
ON 
32 
TECHNICAL, LEGAL OR FINANCIAL MATTERS; 
33 


 
 
 
II. 
SUBMISSIONS AND REPORTS INCLUDED IN THE REVIEW 
1 
FOR 
REGULATORY 
RESET: 
PROVIDED, 
THAT 
THE 
2 
REGULATORY RATE RESET PROCESS SHALL BE DECIDED 
3 
THROUGH REGULAR PROCEEDINGS IN ACCORDANCE WITH 
4 
THE ERC’S POWERS UNDER SECTION 43(F) OF THIS ACT; 
5 
AND 
6 
III. 
ANY OTHER CONTRACTS, APPLICATIONS, OR SUBMISSIONS 
7 
MADE BY PARTICIPANTS IN THE ELECTRIC POWER 
8 
INDUSTRY THAT DOES NOT REQUIRE THE EXERCISE OF 
9 
THE 
ERC’S 
QUASI-JUDICIAL 
OR 
QUASI-LEGISLATIVE 
10 
FUNCTIONS AS MAY BE DETERMINED BY THE COMMISSION 
11 
EN BANC.” 
12 
“SEC. 44(E). ISSUANCE OF DECISIONS AND RULE ON APPEALS. 
13 
– THE ERC SHALL ISSUE AN ACTION ON ALL APPLICATIONS AND 
14 
SUBMISSIONS MADE IN REGULAR QUASI-JUDICIAL AND QUASI-
15 
LEGISLATIVE PROCEEDINGS WITHIN TWO HUNDRED SEVENTY 
16 
(270) CALENDAR DAYS FROM THE SUBMISSION OF A VALID 
17 
APPLICATION AS PROVIDED UNDER SECTION 13 OF RA NO. 11234: 
18 
PROVIDED, THAT FOR SUMMARY QUASI-JUDICIAL AND QUASI-
19 
LEGISLATIVE PROCEEDINGS, THE RELEVANT PERIOD SHALL BE 
20 
SIXTY (60) CALENDAR DAYS FROM THE SUBMISSION OF A VALID 
21 
APPLICATION. 
22 
FOR 
APPLICATIONS 
AND 
SUBMISSIONS 
MADE 
IN 
23 
ADMINISTRATIVE PROCEEDINGS, THE ERC SHALL ISSUE AN 
24 
ACTION WITHIN SIXTY (60) CALENDAR DAYS FROM THE 
25 
SUBMISSION 
OF 
ALL 
DOCUMENTARY 
REQUIREMENTS 
AS 
26 
PROVIDED UNDER SECTION 13 OF RA NO. 11234. 
27 
A DECISION ISSUED BY A DIVISION THROUGH A REGULAR OR 
28 
SUMMARY PROCEEDING, OR BY THE CHAIRPERSON THROUGH AN 
29 
ADMINISTRATIVE PROCEEDING, MAY BE SUBJECT TO A MOTION 
30 
FOR RECONSIDERATION FILED BEFORE THE OFFICE THAT 
31 
ISSUED THE DECISION.  
32 


 
 
 
UPON 
THE 
RESOLUTION 
OF 
THE 
MOTION 
FOR 
1 
RECONSIDERATION, AN APPEAL MAY BE MADE BEFORE THE 
2 
COMMISSION EN BANC SOLELY ON THE GROUND THAT A 
3 
PREVIOUSLY ISSUED DECISION IS IN CONFLICT WITH THE 
4 
DECISION SUBJECT OF THE APPEAL. ALL OTHER APPEALS THAT 
5 
INVOLVE QUESTIONS OF FACT AND LAW SHALL BE MADE BEFORE 
6 
THE COURT OF APPEALS. APPEALS THAT INVOLVE SOLELY 
7 
QUESTIONS OF LAW SHALL BE MADE BEFORE THE SUPREME 
8 
COURT. 
9 
DECISIONS SHALL BE CONSIDERED FINAL AND EXECUTORY 
10 
ONLY UPON THE LAPSE OF THE PERIOD TO FILE A MOTION FOR 
11 
RECONSIDERATION OR AN APPEAL, AS THE CASE MAY BE, 
12 
WITHOUT SUCH MOTION OR APPEAL BEING FILED WITHIN THE 
13 
GIVEN PERIOD. 
14 
WITHIN SIX (6) MONTHS FROM THE EFFECTIVITY OF THIS ACT, 
15 
THE ERC SHALL ISSUE THE RULES OF PROCEDURE FOR REGULAR 
16 
AND 
SUMMARY 
QUASI-JUDICIAL, 
AND 
ADMINISTRATIVE 
17 
PROCEEDINGS, AS PROVIDED FOR IN THIS ACT. 
18 
THE RULES OF PROCEDURE TO BE ISSUED BY THE ERC SHALL 
19 
GOVERN ALL CASES FILED AFTER THE EFFECTIVITY OF SUCH 
20 
RULES INCLUDING THOSE THAT ARE PENDING AT THE TIME OF 
21 
THE ISSUANCE OF THE RULES. FOR CASES THAT ARE PENDING 
22 
AT THE TIME OF ISSUANCE OF THE RULES, THE COMMISSION EN 
23 
BANC MAY WAIVE THE APPLICATION OF THE RULES IF IT DEEMS 
24 
THAT ITS APPLICATION WOULD NOT BE FEASIBLE, CAUSE UNDUE 
25 
DELAY OR WOULD WORK INJUSTICE, IN WHICH CASE THE RULES 
26 
EXISTING AT THE TIME THE CASES WERE FILED SHALL 
27 
GOVERN.” 
28 
 
“SEC. 10. Section 46 of RA No. 9136 is hereby amended to read as follows: 
29 
“SEC. 46. Fines and Penalties. - The FOLLOWING fines and 
30 
penalties [that] shall be imposed [by the ERC] for any violation of or non-
31 
compliance with this Act or the IRR: x x x  
32 


 
 
 
(A)  ADMINISTRATIVE FINES AND PENALTIES. - BY ANY 
1 
JURIDICAL 
ENTITY 
ENGAGED 
IN 
THE 
GENERATION, 
2 
TRANSMISSION, DISTRIBUTION AND SUPPLY OF ELECTRICITY, 
3 
THE FINE shall range from a minimum of fifty thousand pesos 
4 
(₱50,000.00) to a maximum of FIVE HUNDRED million pesos 
5 
(₱500,000,000.00). 
6 
THE COMMISSION MAY ORDER THAT SUCH AMOUNT OF 
7 
FINES AND PENALTIES IMPOSED FOR VIOLATION OF THIS ACT BE 
8 
IMMEDIATELY APPLIED AS REFUND IN THE RATES CHARGED BY 
9 
THE OFFENDING ENTITY TO THE END-USERS AFFECTED BY SUCH 
10 
VIOLATION OR NON-COMPLIANCE. 
11 
THE 
ERC 
SHALL 
PROMULGATE 
THE 
SCHEDULE 
OF 
12 
PENALTIES, WITH CONSIDERATION OF THE CIRCUMSTANCES 
13 
SURROUNDING THE VIOLATION OR NONCOMPLIANCE, SUCH AS, 
14 
RECIDIVISM, PERIOD OF NONCOMPLIANCE, OR ABUSE OF 
15 
MARKET POWER, CARTELIZATION, OR ANTI-COMPETITIVE OR 
16 
DISCRIMINATORY BEHAVIOR. THE ERC MAY IMPOSE THESE 
17 
PENALTIES FOR EVERY DAY OF VIOLATION, DELAY, OR 
18 
NONCOMPLIANCE. 
19 
(B) CRIMINAL AND CIVIL LIABILITIES. - BY ANY PERSON, A 
20 
FINE OF NOT LESS THAN FIFTY THOUSAND PESOS (₱50,000.00) 
21 
BUT NOT MORE THAN FIFTY MILLION PESOS (₱50,000,000.00), OR 
22 
BY IMPRISONMENT OF NOT LOWER THAN SIX (6) YEARS AND ONE 
23 
(1) DAY AND NOT HIGHER THAN TWELVE (12) YEARS, OR BOTH, AT 
24 
THE DISCRETION OF THE COURT. 
25 
WHEN THE ENTITIES INVOLVED ARE JURIDICAL PERSONS, 
26 
THE PENALTY OF IMPRISONMENT SHALL BE IMPOSED ON ITS 
27 
OFFICERS, DIRECTORS, OR EMPLOYEES HOLDING MANAGERIAL 
28 
POSITIONS, WHO ARE KNOWINGLY AND WILLFULLY RESPONSIBLE 
29 
FOR SUCH VIOLATION.  
30 
(C) OFFER OF COMPROMISE. - ANY PERSON OR ENTITY 
31 
SUBJECT 
TO 
AN 
ADMINISTRATIVE 
PROCEEDING 
IN 
THE 
32 
COMMISSION THAT MAY RESULT IN THE IMPOSITION OF FINES, 
33 


 
 
 
REFUNDS AND/OR PENALTIES, PURSUANT TO THIS SECTION, MAY 
1 
ENTER A PLEA OF NOLO CONTENDERE, IN WHICH SUCH PERSON 
2 
OR ENTITY DOES NOT ACCEPT NOR DENY RESPONSIBILITY FOR 
3 
THE CHARGES BUT AGREES TO ACCEPT THE OBLIGATION TO PAY 
4 
FINES, REFUNDS AND/OR PENALTIES AS IF ALREADY FOUND 
5 
LIABLE. THE PLEA CANNOT BE USED AGAINST SUCH PERSON OR 
6 
ENTITY TO PROVE LIABILITY IN A CRIMINAL ACTION NOR IN 
7 
ANOTHER CAUSE OF ACTION: PROVIDED,  THAT A PLEA OF NOLO 
8 
CONTENDERE MAY BE ENTERED ONLY WITH THE PRIOR 
9 
APPROVAL OF THE COMMISSION EN BANC WHICH SHALL ACCEPT 
10 
IT ONLY AFTER WEIGHING ITS EFFECT ON THE PARTIES AND THE 
11 
CONSUMERS: 
PROVIDED, 
FURTHER, 
THAT 
SHOULD 
THE 
12 
COMMISSION ACCEPT THE PLEA OF NOLO CONTEDERE, THE FINE, 
13 
REFUND AND/OR PENALTY TO BE ADJUDGED FOR PAYMENT 
14 
SHALL NOT BE LESS THAN FIFTY PERCENT (50%) OF THE 
15 
CORRESPONDING FINE, REFUND AND/OR PENALTY FOR THE 
16 
SUBJECT OFFENSE:  PROVIDED, FURTHERMORE, THAT ANY 
17 
PERSON OR ENTITY CAN NOT ENTER INTO A PLEA OF NOLO 
18 
CONTENDERE FOR A VIOLATION OF ITS FRANCHISE OR 
19 
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY, AND 
20 
SUCH OTHER CASES AS DETERMINED BY THE COMMISSION: 
21 
PROVIDED, FINALLY, THAT THE COMMISSION SHALL ISSUE 
22 
GUIDELINES 
FOR 
THIS 
PROVISION, 
SUBJECT 
TO 
PUBLIC 
23 
CONSULTATION. 
24 
(D) ROLE OF THE DEPARTMENT OF JUSTICE. - CIVIL AND 
25 
CRIMINAL ACTIONS AND PROCEEDINGS INSTITUTED ON BEHALF 
26 
OF THE GOVERNMENT UNDER THE AUTHORITY OF THIS ACT OR 
27 
OTHER LAWS ENFORCED BY THE ERC SHALL BE BROUGHT IN THE 
28 
NAME OF THE GOVERNMENT OF THE PHILIPPINES AND SHALL BE 
29 
PROSECUTED AND HANDLED BY THE ERC WITH THE ASSISTANCE 
30 
OF THE DEPARTMENT OF JUSTICE (DOJ): PROVIDED, THAT THE 
31 
DETERMINATION OF THE EXISTENCE OF PROBABLE CAUSE AND 
32 
THE SUBSEQUENT FILING OF ANY CRIMINAL OR CIVIL CASE WITH 
33 
THE PROPER COURT AGAINST VIOLATORS OF THIS ACT SHALL 
34 


 
 
 
EXCLUSIVELY BELONG TO THE DOJ: PROVIDED, HOWEVER, THAT 
1 
NO CIVIL OR CRIMINAL ACTION FOR THE RECOVERY OF DUTIES 
2 
OR THE ENFORCEMENT OF ANY FINE, PENALTY OR FORFEITURE 
3 
UNDER THIS ACT SHALL BE FILED IN COURT WITHOUT THE 
4 
APPROVAL OF THE ERC. 
5 
(E) ADJUSTMENT OF FINES AND PENALTIES. - THE FINES AND 
6 
PENALTIES MAY BE ADJUSTED TO ITS PRESENT VALUE EVERY FIVE 
7 
(5) YEARS USING THE CONSUMER PRICE INDEX (CPI) AS PUBLISHED 
8 
BY THE PHILIPPINE STATISTICS AUTHORITY 
9 
x x x” 
10 
SEC. 11. Appropriations. – The amount necessary for the initial 
11 
implementation of this Act shall be charged against the current year’s 
12 
Appropriations of the ERC. Thereafter, such amount shall be included in the 
13 
annual General Appropriations Act. 
14 
SEC. 12. Congressional Oversight. – The Joint Congressional Energy 
15 
Commission shall exercise oversight powers over the implementation of this Act. 
16 
SEC. 13. Repealing Clause. – Sections 1 and 2 of Executive Order No. 
17 
172, entitled “Creating the Energy Regulatory Board” and Section 42 of RA No. 
18 
9136, otherwise known as the “Electric Power Industry Reform Act of 2001”, as 
19 
amended, are hereby repealed. 
20 
All laws, decrees, orders, rules and regulations or parts thereof which are 
21 
inconsistent with or contrary to the provisions of this Act are hereby repealed or 
22 
amended accordingly without prejudice to RA No. 10667, otherwise known as 
23 
the “Philippine Competition Act”. 
24 
SEC. 14. Effectivity. – This Act shall take effect fifteen (15) days after its 
25 
publication in the Official Gazette or in a newspaper of general circulation. 
26 
Approved,  
27