Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CONGRESS,

Second Regular Session

4978

House Bill No.__~

Introduced by REP. JOSEPH STEPHEN S$, PADUANO.

EXPLANATORY NOTE

Presidential Decree (PD) No, 269 otherwise known as the "National
Electrification Administration Decree", was issued by then President Marcos in
1973 to strengthen the government's electrification program by reorganizing the
National Electrification Administration (NEA) that was earlier created under
Republic Act No. 6038.

Republic Act (RA) No. 10531, or the National Electrification
Administration Reform Act of 2013, further amended PD No. 269, by
strengthening the regulatory powers of the NEA over electric cooperatives,
giving the NEA the power to directly intervene in the affairs of electric
cooperatives through its "step-in rights", the power to appoint temporary
members of the board of directors, etc. RA No. 10531 also amended PD No
269 by disqualifying all government elected and appointed officials, unlike in
PD No. 269 which allowed barangay officials to be members of the board of
directorS of electric cooperatives.

The present proposal entails amending the pertinent sections of PD No.
269, by returning the eligibility of barangay officials to run for a seat in the
board of directors of electric cooperatives. We believe that the barangay
officials, by the very nature of their position, have a better grasp of the situation
of the communities that the electric cooperative
s serve and would therefore be in a better position to craft policies that are
responsive to these needs,

However, recognizing that these barangay officials were used in the past
by interest groups to the detriment of the consumers, this bill further proposes


the creation of a screening committee composed of credible members of the
community, that would vet the qualifications of the candidates for the board.

This bill also proposes to allow the elderly to be members of the board of
directors, recognizing the insights and experience that these citizens have
acquired over the years and thus extending their opportunity to contribute to the
general welfare of the community, by removing the cap on the age qualification
of the candidates.

It is believed that these proposals, when passed, would improve the
service of electric cooperatives to its consumers. Immediate passage of-this bill
is thus urgently requested.

JOSEP] EPHEN S$. PADUANO

Abang Lingkod Partylist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4978

House Bill No.

Introduced by REP. JOSEPH STEPHEN S. PADUANO

AN ACT
FURTHER AMENDING PRESIDENTIAL DECREE NO. 269, AS AMENDED,
OTHERWISE KNOWN AS THE 'NATIONAL ELECTRIFICATION
ADMINISTRATION DECREE'

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

Section 1. Section 26-A of Presidential Decree No. 269, as amended,
otherwise known as the National Electrification Decree, shall be amended to
read as follows and the sub-paragraphs re-lettered accordingly:

“SEC. 26-A. "Independence of the Board of Directors and Officers
of the Electric Cooperatives. - To ensure the long-term business and
economic viability of electric cooperatives, the management, operations
and strategic planning of electric cooperatives shall, as much as
practicable, be insulated from local politics.

"Towards this end, no person shall be elected or appointed as an
officer or be eligible to run as a board member of an electric cooperative
ifs

"(a) such person [or his or her spouse] holds any (public] ELECTIVE
office ABOVE THE POSITION OF BARANGAY CAPTAIN;

((b) such person or his or her spouse has been a candidate in the
last preceding local or national elections;]


XXXX.

Sec. 2. Section 26-B of Presidential Decree No. 269, as amended,

otherwise known as the National Electrification Decree, shall be amended to
read as follows:

"SEC, 26-B. "Fit and Proper Rule. - To ensure that the
management and operations of electric cooperatives are carried out
with due regard to its economic viability, the NEA, TO HELP IT IN
SCREENING THE CANDIDATES, shall [prescribe, pass upon and
review the qualifications of individuals appointed or elected to
electric cooperatives and disqualify those found unfit.) CREATE A
COMMITTEE IN EACH OF THE DISTRICT WHICH SHALL BE
COMPOSED OF THE FOLLOWING:

A) REGIONAL DIRECTOR OF THE NEA, OR HIS OR HER
REPRESENTATIVE, AS CHAIRPERSON

B) REPRESENTATIVE FROM THE BUSIN COMMUNITY;

C) REPRESENTATIVE FROM THE ACADEME;

D) REPRESENTATIVE FROM THE CIVIL SOCIETY BASED IN
THE REGION; AND.

E) REPRESENTATIVE FROM THE RELIGIOUS
COMMUNITY.

REPRESENTATIVES FROM THE PRIVATE SECTOR SHALL BE
APPOINTED BY THE CHAIRPERSON, UPON NOMINATION BY
THEIR RESPECTIVE GOVERNMENT ACCREDITED
ORGANIZATIONS. THE CHAIRPERSON SHALL ALSO APPOINT
ONE OF THE PRIVATE SECTOR REPRESENTATIVES AS HIS/HER
VICE-CHAIRPERSON."

"THE SCREENING COMMITTEE SHALL CONSIDER A candidate's
integrity, experience, education, competence and probity [shall be
considered] in determining whether he or she shall be fit and proper to
become a director or office of the electric cooperative."

"For this purpose, the minimum qualifications of a director or
officer of the electric cooperative shall be read as follows:

XXX
"(b) He or she is a graduate of ANY [al four (4)-year course, OR

HAS A FIVE YEAR EXPERIENCE ON ANY FIELD OF EXPERTISE OR
PROFESSION;


"(c) He or she MUST BE AT LEAST [is between] twenty-one (21)
{and seventy (70)] years old, on the date of election;

XXXX,

Sec. 3. Implementing Agency. - The National Electrification
Administration shall formulate the necessary implementing rules and regulations
of this Act.

Sec. 4. Separability Clause. - Any portion or provision of this Act that may
be declared unconstitutional shall not have the effect of nullifying the other
provisions hereof.

Sec. 5. Repealing Clause. - All laws, rules and regulations, other issuances
or parts thereof, which are inconsistent with this Act, are hereby repealed or
modified accordingly.

Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days from its
publication in the Official Gazette or two (2) newspapers of general circulation.

Approved,