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SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
SENATE 
SENATE BILL ,NO. _2_{_)5_9 
'14 
JAN 15 PS:55 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Electric power Industry Reform Act of 2001 was enacted for 
various reasons. Among others, EPIRA was made into law to 
ensure and accelerate the total electrification of the country, to 
ensure transparent and reasonable prices of electricity in a regime 
of free and fair competition and full public accountability to 
achieve greater operational and economic efficiency and enhance 
the competitiveness of Philippine products in the global market, to 
establish a strong and purely independent regulatory body and 
system 
to 
ensure consumer protection and enhance the 
competitive operation of the electricity market and to protect the 
public interest as it is affected by the rates and services of electric 
utilities and other providers of electric power.! 
However, over ten years after it was passed the problems 
with the Energy Industry that should have need addressed and 
resolved by EPIRA became wor;se. Most especially, the cost of 
electricity in the country is at its highest since the enactment of 
the law. In addition to that, there seems to be no true competition 
with respect to the players in the Energy Industry in our country. 
Based on the effects and observations to the Energy Industry 
after the enactment of EPIRA, only one conclusion can be drawn. 
The law is flawed and needs to bt1 amended. 
One of the provisions that calls for an amendment is Section 
45 which deals with Cross Ownership, Market Power Abuse and 
Anti-Competitive Behavior. The present provision only prohibits 
1 Section 2, Declaration of Policy, Electric P9wer Industry RefOllli Act 0[2001, R.A. 9136 


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the ownership or having interest of a generation company to a 
transmission company, and vice versa. Consequently, most of the 
generation companies also venture to transmission. In effect, there 
is no true competition within the Energy Industry since they can 
easily manipulate the price of electricity. The end result is higher 
cost of electricity for the Filipino people. 
This bill seeks to address the said problem. Proscription to 
Generation Companies to hold interest and/ or undertake the 
business of distributing electricity and the Distribution Companies 
to directly or indirectly venture to energy generation will result to 
true competitive energy market. In the end, it will result to a higher 
inflow of private capital and expansion of energy industry. And in 
consequence of that, our country will have lower electricity cost 
than what we have in the present . 
In view of the foregoing, the passage of this bill is earnestly 
sought. 
• 
JOSEPH VICTOR G. EJERCITO 


• 
SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
SENATE 
·)Or.'9 
SENATE BILL NO. 
h.. 
,) 
'14 
,IAN 15 P'3:55 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT 
AMENDING REPUBLIC ACT No. 9136, OTHERWISE KNOWN AS 
THE 
"ELECTRIC POWER INDUSTRY REFORM ACT OF 2001", 
AND FOR OTHER PURPOSES 
Be it 'enacted by the Senate and HoUse of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 45. of .Republic Act No. 9136 is hereby 
amended to read as follows: 
"Sec. 45. Cross Ownership, Market Power Abuse 
and Anti-Competitive Behavior. - No participant in the 
electricity industry or any other person may engage in any 
anti-competitive behavior including, but not limited to, 
cross-subsidization, price or market manipulation, or other 
unfair trade practices detrimental to the encouragement 
and protection of contestable market. 
NO DISTRIBUTION UTILITY, OR ITS RESPECTIVE 
SUBSIDIARY OR AFFILIATE OR STOCKHOLDERS OR 
OFFICIAL OR DIRECTOR OR ANY OF THEIR RELATIVES 
WITHIN 
THE 
FOURTH 
CIVIL 
DEGREE 
OF 
CONSANGUINITY OR AFFINITY, SHALL BE ALLOWED TO 
HOLD ANY INTEREST, DIRECTLY OR INDIRECTLY, IN ANY 


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GENERATION COMPANY. LIKEWISE, NO GENERATION 
COMPANY, 
OR 
ITS 
RESPECTIVE 
SUBSIDIARY 
OR 
AFFILIATE 
OR 
STOCKHOLDERS 
OR 
OFFICIAL 
OR 
DIRECTOR OR ANY OF THEIR RELATIVES WITHIN THE 
FOURTH 
CIVIL 
DEGREE 
OF 
CONSANGUINITY 
OR 
AFFINITY, 
SHALL 
BE ALLOWED 
TO 
HOLD 
ANY 
INTEREST, 
DIRECTLY 
OR 
INDIRECTLY, 
IN 
ANY 
DISTRIBUTION 
COMPANY: 
PROVIDED, 
THAT 
THE 
DISTRIBUTION .UTILITY, ITS- RESPECTIVE SUBSIDIARY 
OR AFFILIATE OR STOCKHOLDER OR OFFICIAL OF A 
DISTRIBUTION UTILITY HOLDING AN INTEREST IN ANY 
GENERATION COMPANY, ANOVICE VERSA, AT THE TIME 
OF THE PASSAGE OF THIS ACT, SHALL BE REQUIRED 
TO DIVEST THE SAME WITHIN ONE (1) YEAR FROM THE 
EFFECTIVITY OF THIS ACT. 
No generation company or distribution utility, or 
its respective subsidiary or affiliate or stockholder or official 
of a generation company or distribution utility, or other 
entity engaged in generating and supplying electricity 
specified by ERC shall be allowed to hold any interest, 
direct or indirect, in TRANSCO or its concessionaire . 
Likewise, the TRANSCO, or its concessionaire or any of its 
stockholders or officials or any of their relatives within the 
fourth civil degree of consanguinity or affinity, shall not 
hold any interest, whether direct or indirect, in any 
generation company or distribution utility. Except for 
government-appointed representatives, no person who is 
an officer or director of TRANS CO or its concessionaire 
shall be an officer or director of any generation company, 
distributi9n utility or supplier. A. GENERATION COMPANY 
MAY BE PERMITTED TO HOLD INTEREST, DIRECTLY OR 
INDIRECTLY, 
IN 
ANOTHER. GENERATION 
COMPANY: 
PROVIDED, THAT THE EXTENT OF SUCH INTEREST 
SHALL BE LESS THAN THE AMOUNT OF SHARES 
NEEDED TO VOTE ONE MEMBER OF THE BOARD OF 
DIRECTORS. 
XXX" 
SEC. 2. Repealing 
Decrees, 
Issuances, 
Instruction, rules and 
provisions of this Act 
accordingly. 
Clause. -
All laws, Presidential 
Executive 
Orders, 
Letters 
of 
regulations inconsistent with the 
are hereby repealed or modified 


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SEC. 3. Effectivity Clause. - This Act shall take effect 
fifteen (15) days from the date of its publication in at least 
two (2) newspapers of general circulation. 
Approved,