Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS

First Regular Session

HOUSE BILL NO. 1658

Introduced by REPRESENTATIVE CHEENO MIGUEL D. ALMARIO

EXPLANATORY NOTE

Public utility providers — power, water, internet, cable televisions,
telecoms — normally charge their subscribers a fixed overhead monthly

fee to ensure uninterrupted quality service.

In most areas of the country, however, interruptions in the services
of utility companies occur too often for comfort. These disruptions
adversely impact people and the economy resulting in actual and
opportunity losses.

This bill seeks to address the losses incurred by the subscribers
through minute-based forfeiture on fixed and overhead cost charges of
utility service companies when unannounced or unintended service
interruptions, not attributable to natural calamities, occur. It mandates
public utility providers to create mechanisms to refund or adjust the
billings of users and consumers, including subscribers under prepaid
plans, who suffered losses due to unscheduled disruptions.

The measure also aims to encourage and challenge companies to
improve their services while adopting the best business practices by
giving their customers advance notifications of reasonable service

interruptions.

A similar version of this bill was filed in the 18 Congress by the


Honorable Joel Mayo Z. Almario and was previously filed by this
representation during the 19" Congress. Support for the approval of
this bill is earnestly sought.

CHEENO . ALMARIO
Re itive
24 District, Davao Oriental


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS

First Regular Session

HOUSE BILL NO. 1658

Introduced by REPRESENTATIVE CHEENO MIGUEL D. ALMARIO

AN ACT
IMPOSING FORFEITURES ON THE OVERHEAD CHARGES DUE TO
UNINTENDED OR UNANNOUNCED UTILITY SERVICE
INTERRUPTION
AND FOR OTHER PURPOSES

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

SECTION 1. This Act shall be known as the “Utility Service
Interruption Forfeiture Act of 2025”.

SEC. 2. It is hereby declared the policy of the State to ensure that
all citizens have access to water, electricity, and telecommunications

services.

SEC. 3. There shall be a minute-based forfeiture on the overhead
and other fixed fees charged by utility service providers to every
subscriber or consumer whenever unintended or unannounced utility

service outages or interruptions arise.

Utility service entities shall apply the minute-based forfeiture, on
a pro-rated basis, as a refund credit or bill adjustment to a customer or
subscriber who has experienced a service outage or interruption for an

aggregate period of twenty-four (24) hours or more covering a billing

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cycle of one (1) month. The utility service entities shall not require the
subscriber or customer to take any action to receive a refund credit or

bill adjustment.

The refund credit granted under this Act shall likewise be granted
to customers subscribing to a service on a prepaid basis. The utility
service entities shall provide the necessary mechanisms that prepaid

subscribers may use to avail of the refund credit.

SEC. 4. The minute-based forfeiture granted to subscribers and
consumers on the overhead and other fixed fees, within the ambit of
this Act, shall apply only to unintended or unannounced utility service
outages or interruptions; Provided, That said minute-based forfeiture
shall not apply to a utility service outages or interruptions due to
scheduled maintenance breaks as announced by the utility service
providers; Provided, further, That the utility service providers shall
notify all its consumers or subscribers through print, radio, television,
or social medial platforms, at least forty-eight (48) hours prior to the

scheduled maintenance break.

SEC. 5. The minute-based forfeitures shall apply from the time
the unintended and unannounced electricity, water, and
telecommunications service interruption starts until the service is fully

restored.

SEC. 6. The minute-based forfeiture rates and overhead and
other fixed charges shall be determined by the Energy Regulatory
Commission (ERC), Local Water Utility Administration (LWUA), and
National Telecommunications Commission (NTC), as the case may be,

in coordination with the other concerned government agencies.

SEC. 7. Utility services interruptions due to, but not limited to,
force majeure, acts of gods, insurrection, rebellion, or negligence by the
consumer or subscriber, shall be excluded from the minute-based

forfeitures provided for in this Act.


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SEC. 8. Any utility service provider found in violation of the
provisions of this Act shall be punished with a fine of not less than Fifty
Thousand Pesos (P50,000.00) for each day of non-compliance
commencing from the date the violation is committed.

SEC. 9. The Department of Energy (DOE) and Department of
Information and Communications Technology (DICT), in coordination
with the ERC, LWUA, NTC, and other concerned agencies, shall
formulate the implementing rules and regulations (IRR) within sixty (60)

days from the enactment of this Act.

SEC. 10. If any part, section, or provision of this Act shall be held
invalid or unconstitutional, the rest of the provisions shall not be
affected thereby.

SEC. 11. All laws, executive orders, rules and regulations, or
parts thereof which are inconsistent with this Act are hereby repealed

or modified accordingly.

SEC. 12. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general

circulation.

Approved,