REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8352

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

The Malampaya gas field or the Malampaya-Camago field is a deepwater gas-condensate
reservoir, located in the Service Contract 38 license area, located offshore, 65 km northwest of the
island of Palawan. The field was developed and currently operated by Shell Philippines Exploration
B.V. (SPEX), under the Royal Dutch Shell; with joint venture partners - Chevron Malampaya LLC
and Philippine National Oil Company Exploration Corporation. It was the first oil and gas platform
to be designed and built in the Philippines, and its successful completion has made the country a
player in construction for the oil and gas industry.

Malampaya is benefiting the Philippines in countless ways, including reducing oil imports,
assuring a more stable supply of energy and a cleaner source of power, and meeting up to 30% of
Luzon’s energy requirements. The operation of Malampaya in the power stations’ full capacity of
2,700 megawatts is displacing an estimate of some 1.35 million kilograms of CO2 per hour-a
cleaner and more sustainable process, as compared to energy generation using coal or fuel oil.

Over the years, the Malampaya Fund, whose utilization was meant for financing resource
development and exploration programs and projects, has been tapped instead to fund non-energy
related programs such as rice sufficiency programs, relief operations, and the AFP Modernization
Fund. The aforementioned are of great importance, however, this representation is convinced that
the fund must be used to directly benefit power consumers, thus this proposal.

In view of the foregoing, approval of this bill is earnestly sought.



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8352

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
REDUCING ELECTRICITY RATES BY ALLOCATING THE NET NATIONAL
GOVERNMENT SHARE FROM THE MALAMPAYA NATURAL GAS PROJECT FOR
‘THE PAYMENT OF THE STANDARD CONTRACT COSTS AND STRANDED DEBTS FO
‘THE NATIONAL POWER CORPORATION

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 “Cheaper Electricity Act of
2018.”

SEC. 2. Declaration of Policy.—It shall be the policy of the State to protect public interest
by providing reliable and reasonably-priced energy to consumers. Towards this end, the State shall
implement policies and programs to ensure the delivery of affordable electricity consumers.

SEC. 3. Malampaya Fund for Payment of Universal Charge-Stranded Contract Costs
(UC-SCC).—AII proceeds of the net national government share from collections of the Malampaya
Natural Gas project, otherwise known as the Malampaya Fund shall be allocated solely for the
payment of the National Power Corporation’s Stranded Contract Costs and Stranded Debts, which
shall be remitted to a Special Trust Fund to be administered by the Power Sector Assets and
Liabilities Management (PSALM) Corporation: Provided, That the amounts herein allocated shall
be included in the General Appropriations Act: Provided, further, that when the stranded contract
costs and stranded debts are fully paid, the aforementioned collection shall accrue to the National
Treasury,


SEC. 4, Implementing Rules and Regulations.—Within sixty days (60) from the effectivity
of this Act, the Department of Energy, Department of Finance, and the Department of Budget and
Management shall provide the necessary rules and regulations for the proper disposition of the said
funds and the effective implementation of this Act.

SEC. 5. Repeating Clause-—All laws, decrees, executive orders or parts thereof
inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 6. Separability Clause.—If any part or provision of this Act is declared invalid or
unconstitutional, the other parts not otherwise affected shall remain in full effect and force.

SEC. 7. Effectivity.—This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in two (2) newspapers of general circulation.

Approved,