Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10494 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE
The National 
Power 
Corporation, 
also 
known 
as NAPOCOR, 
is 
a 
Philippine government-owned and controlled corporation that is mandated to 
provide electricity to all rural areas of the Philippines by 2025, to manage water 
resources for power generation, and to optimize the use of other power generating 
assets 
Prior to the effectivity of the Electric Power Industry Reform Act (EPIRA) law 
or Republic Act No. 9136, approved on June 8, 2001, on March 1, 2003 which 
deregulated the power industry, NAPOCOR/NPC was a vertically integrated 
power utility engaged in the production, transmission and distribution of electric 
power, used to be the largest provider and generator of electricity in the 
Philippines, and served as the operator and owner of the Philippine power grid 
and its related facilities and assets from its creation on November 3, 1936, until 
the turnover of operations, maintenance, and ownership of the grid to another 
government-owned corporation National Transmission Corporation (TransCo), 
established on June 26, 2001 18 days after the EPIRA was approved, in March 
2003 as mandated on the said law that organized the industry into four sectors: 
generation, transmission, distribution, and supply. It was also the principal 
power provider for Manila Electric Company (Meralco), the only power 
distributor in the Metro Manila area and its nearby provinces (including all 
towns or cities such as Santo Tomas, Batangas on some of their respective 
provinces that cover the Meralco franchise). 
Napocor used to be the country's largest corporation in terms of revenue. 
Profitability however is a main concern now because it is in the business of 
missionary electrification that provides electricity to far-flung, off-grid remote 
May 29, 2024
8:44 am


areas and islands at subsidized rates.[2] As a government owned and controlled 
corporation, Napocor is subject to the scrutiny of the Commission on Audit 
(COA) and the Governance Commission for Government Owned and Controlled 
Corporations (GCG). 
It also manages 17 large dams and 11 watersheds in the country and continues 
to oversee the privatization of the government's remaining undisposed power 
assets. As of December 2015, NPC has a total of 1,735 megawatts (MW) of 
generating capacity, which includes 345 MW of small generators in small islands 
and off-grid locations and 1,390 MW in hydroelectric power plants and 
independent power producing plants in the main grids. 
This House Bill seeks to manage resources for power generation, and to optimize 
the use of other power generating assets, thus providing modernization funding 
to the NAPOCOR. 
Thus, the early passage of this bill is earnestly requested. 
MICHAEL L. ROMERO Ph.D.   


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10494 
Introduced by Representative Michael L. Romero 
    AN ACT 
PROVIDING FOR THE MODERNIZATION OF THE NATIONAL 
POWER CORPORATION (NAPOCOR), DEFINING ITS POWERS AND 
FUNCTIONS, TO OPTIMIZE THE USE OF POWER GENERATING 
ASSETS, PROVIDING APPROPRIATIONS THEREFOR, AND FOR 
OTHER PURPOSES 
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 
Napocor Modernization Act of 2024. 
SECTION 
2. 
DECLARATION OF POLICY — It is a declared policy of 
the State in conformity with the mandate of the Constitution, to 
provide electricity to all rural areas of the Philippines by 2025, to manage all 
resources for power generation, and to optimize the use of other power generating 
assets as having priority over its other functions. 
SECTION 
3. 
MODERNIZATION FUNDING. – The amount of Two 
Billion Pesos (Php 2, 000,000,000.00) for the operation and administration of 
the National Power Corporation, (NAPOCOR) shall be chargeable against 


funds for the purpose and other sources recommended by the Department of 
Budget and Management (DBM).  
 
Thereafter, appropriations for the National Power Corporation, 
(NAPOCOR) shall be included in the budget proposals under the Department 
of Energy (DOE). 
 
The Department of Budget and Management (DBM) shall rationalize the 
existing organizational structure and staffing pattern of the (Napocor) in 
accordance with the prevailing provisions and relevant compensation and 
position classification laws, rules and regulations. 
Thereafter, the amount needed for the continued implementation of the 
modernization program shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
4. 
National 
Power 
Corporation 
(NAPOCOR) 
MODERNIZATION FUND – There is hereby created the National Power 
Corporation (NAPOCOR) Modernization Fund to be used exclusively for the 
National Power Corporation (NAPOCOR) Modernization Program. 
The (Napocor) Modernization Fund shall be administered by the Secretary of the 
DOE in accordance with existing government budgeting, accounting, and 
auditing rules and regulations. 
SECTION 
5. 
PROGRESS REPORT – The Secretary of DOE shall 
prepare an annual report on the status of the implementation of the (Napocor) 
Modernization Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee on Economic Affairs of the Senate and 
the House of Representatives. 


SECTION 
6. 
INCREASE OF PERSONNEL. – The National Power 
Corporation (NAPOCOR) shall maintain a sufficient staffing pattern. Hence, it 
is authorized to increase its manpower to meet such required and may continue 
to increase personnel per percentage rate increase of committed mandates 
annually or as the need arises. 
SECTION 
7. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of three (3) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the National Power Corporation, (NAPOCOR) shall 
continue to develop, modernize and constantly update its operational 
capabilities to keep pace with best global practices. 
SECTION 
8. 
SUPERVISING AND ASSESSMENT CONCERNS. — the 
Department of Energy (DOE), shall provide the necessary technical and 
financial assistance to ensure effective operations and build-up. 
SECTION 
9. 
IMPLEMENTING AGENCY. — The Department of Energy 
(DOE). 
SECTION 
10. 
IMPLEMENTING RULES AND REGULATIONS. — Within 
ninety (90) days from the effectivity of this Act, the Department of Energy 
(DOE) shall, in consultation with other concerned government and private 
agencies, promulgate the necessary rules and regulations to carry out the 
provisions of this Act. 
SECTION 
11. 
TRANSITORY PROVISION – Existing industries, businesses 
and offices affected by the implementation of this Act shall be given six (6) 
months transitory period from the effectivity of the IRR or such other period as 
may be determined, to comply with the requirements of this Act. 


The agencies concerned shall provide for the continued maintenance, 
operation, and management of all the facilities and equipment. 
SECTION 12. 
PERIODIC REPORTS - The Secretary of (DOE) shall 
submit periodic reports on its findings and make recommendations on 
actions to be taken by both Congress and Senate and the appropriate 
departments, in order to carry out the objectives and mandates of this Act. 
SECTION 
13. 
AUTOMATIC REVIEW - Every three (3) years after the 
effectivity of this Act, an independent review panel composed of experts to be 
appointed by the President of the Republic shall review the policies and 
programs in the defense and security sector and shall make recommendations, 
based on its findings, to the President and to both Houses of Congress. 
SECTION 
14. 
REPEALING CLAUSE. – All laws, decrees, 
executive orders, rules and regulations, or parts thereof inconsistent with 
the provisions of this Act are hereby repealed or modified accordingly. 
SECTION 
15. 
SEPARABILITY CLAUSE. – If, for any reason, 
any section or provision of this Act is held unconstitutional or invalid, the 
other sections or provisions hereof shall not be affected thereby. 
SECTION 
16. 
EFFECTIVITY CLAUSE. – This Act shall take 
effect after fifteen (15) days from its publication in the Official Gazette or 
in at least two (2) national newspapers of general circulation whichever 
comes earlier. 
 
Approved,