1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _____________ 
Introduced by Representative KRISTINE SINGSON-MEEHAN 
EXPLANATORY NOTE 
The Energy Regulatory Commission (ERC), established under Republic Act 
No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001, is the central 
regulatory authority mandated to oversee market operations, safeguard consumer 
welfare, and ensure the viability of the electric power industry. In enacting the EPIRA, 
we aimed to ensure the quality, reliability, security, and affordability of electric power 
supply, and to enhance our power generation, transmission, and distribution sectors. 
However, more than two decades after its enactment, the EPIRA has faced 
sustained criticisms. Electricity rates in the Philippines remain among the highest in 
Asia despite privatization and unbundling. Market concentration persists, with a 
handful of conglomerates dominating generation and distribution. Consumers 
continue to shoulder stranded costs through universal charges, while mechanisms for 
consumer protection and participation remain underdeveloped. 
These deficiencies underscore the need to fortify the ERC’s independence, 
technical competence, and enforcement powers, so that it may effectively deliver on 
EPIRA’s original intent of promoting competition, ensuring reliable and affordable 
electricity, and protecting the interests of consumers. It is high time we revisit the 
EPIRA law to fill the regulatory gaps in the electric power industry for the ultimate 
benefit of the country and of all electricity consumers. Ultimately, this bill seeks to: 
1. Strengthen and expand the Energy Regulatory Commission (ERC);
2. Grant additional powers, functions and duties of the Chairperson to enhance
the management of the Commission, thereby, providing an avenue to expedite
matters in the ERC;
3. Impose additional qualifications, disqualifications, limitations and prohibitions to
the Chairperson and the members of the Commission to strengthen
transparency and efficiency in the collegial decision-making of the Commission;
4. Establish the mandate of the ERC to expand and continuously upskill its
personnel in parallel with the increased regulation over the ever-evolving
electric power industry;
August 28, 2025
1:22 pm
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5. Grant limited fiscal autonomy to the ERC which gives it an advantage in the
training of personnel, and the acquisition of necessary equipment, facilities and
other assets to perform effective regulation of the electric power industry;
6. Include benchmarking in the mandate of ERC to provide standardization of the
rates imposed on electricity consumers;
7. Provide for flexibility in the exercise of its quasi-judicial and regulatory functions,
wherein the ERC can implement regular, summary, administrative proceedings,
and other processes that shall promote transparency, expediency and
consistency; and
8. Increase the maximum administrative fine that can be imposed against erring
industry participant from the current PhP 50 Million to P500 Million – with
adjustment to the Consumer Price Index every five (5) years. Such fines can
be used as refunds for affected electricity end-users. In addition, criminal and
civil liabilities can be imposed against the officers of the erring entities in the
electric power industry.
By strengthening the ERC’s independence, competence, and enforcement 
powers, this measure ensures a more, competitive, and consumer-responsive energy 
sector—crucial to achieving reliable and affordable electricity for all Filipinos. 
 In view of the foregoing, the passage of this bill is earnestly sought. 
DEPUTY SPEAKER KRISTINE SINGSON-MEEHAN 
2nd DISTRICT ILOCOS SUR 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _____________ 
Introduced by Representative KRISTINE SINGSON-MEEHAN 
AN ACT STRENGTHENING THE ENERGY REGULATORY COMMISSION AND 
AMENDING FOR THE PURPOSE SECTIONS  38, 39, 40, 41, 42, 43, 44, 45 AND 
46 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE “ELECTRIC 
POWER INDUSTRY REFORM ACT OF 2001” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 38 of Republic Act No. 9136 is hereby amended to read 
as follows: 
“SEC. 38. Creation of the Energy Regulatory Commission. – 
xxx xxx xxx 
The Commission shall be composed of a ChairPERSON and four (4) members to 
be appointed by the President of the Philippines. The ChairPERSON and the 
members of the Commission shall be natural-born citizens and residents of the 
Philippines, persons of good moral character, at least FORTY [thirty]-five ([3]45) 
years of age, and of recognized competence in any of the following fields: energy, 
law, economics, finance, commerce, or engineering, with at least [three (3) years] 
TEN YEARS actual and distinguished experience in their respective fields of 
expertise: Provided, That out of the four (4) members of the Commission at least 
THERE SHALL BE ONE (1) member of the Philippine Bar [with at least ten (10) 
years experience in the active practice of law], and one (1) [shall be] a certified 
public accountant [with at least ten (10) years experience in active practice], 
AND ONE (1) LICENSED ENGINEER. 
xxx 
The Chairperson of the Commission[, who shall be a member of the Philippine 
Bar,] shall act as the Chief Executive Officer of the Commission.  
xxx xxx xxx 
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4 
THE CHAIRPERSON OF THE COMMISSION, ACTING AS THE CHIEF 
EXECUTIVE 
OFFICER, 
SHALL 
HAVE 
THE 
FOLLOWING 
POWERS, 
FUNCTIONS AND DUTIES: 
 
a. TO EXECUTE, ADMINISTER AND IMPLEMENT THE POLICIES AND 
MEASURES APPROVED AND ADOPTED BY THE COMMISSION; 
b. TO DIRECTLY ADMINISTER AND SUPERVISE THE OPERATIONS AND 
DAY-TO-DAY BUSINESS ACTIVITIES OF THE COMMISSION; 
c. TO REPRESENT THE COMMISSION IN ALL DEALINGS WITH OFFICES, 
AGENCIES AND INSTRUMENTALITIES OF THE GOVERNMENT AND 
WITH ALL PERSONS AND ENTITIES, PUBLIC OR PRIVATE, DOMESTIC 
OR FOREIGN, UNLESS OTHERWISE DIRECTED BY THE COMMISSION; 
d. TO EXECUTE, ON BEHALF OF THE COMMISSION, ALL CONTRACTS, 
AGREEMENTS 
AND 
OTHER 
INSTRUMENTS 
AFFECTING 
THE 
INTERESTS OF THE ERC DULY APPROVED BY THE COMMISSION; 
e. TO DIRECT AND SUPERVISE THE PREPARATION OF THE AGENDA FOR 
THE MEETINGS OF THE COMMISSION; 
f. TO PRESIDE AT THE MEETINGS OF THE COMMISSION;  
g. TO INSTITUTE TEMPORARY PRICE MITIGATION MEASURES TO 
PROTECT CONSUMER INTERESTS DURING THE IMPENDENCY, 
EXISTENCE, OR EFFECTS OF A CALAMITY OR EMERGENCY; [SIMILAR 
TO THE POWERS PROVIDED IN SEC. 7 OF RA 7581] AND 
h. TO EXERCISE SUCH OTHER POWERS, FUNCTIONS AND DUTIES AS 
MAY BE ASSIGNED TO HIM BY THE COMMISSION. 
 
THE ERC SHALL SUBMIT TO THE DEPARTMENT OF BUDGET AND 
MANAGEMENT 
(DBM) 
THE 
PROPOSED 
ORGANIZATIONAL 
RESTRUCTURING PROVIDED HEREIN WITHIN THREE (3) MONTHS FROM 
THE EFFECTIVITY OF THIS ACT. 
 
THE DBM SHALL ACT ON THE SUBMITTED PROPOSED ORGANIZATIONAL 
RESTRUCTURING WITHIN ONE (1) MONTH FROM ITS RECEIPT.  
 
EVERY AFTER FIVE (5) YEARS FROM THE EFFECTIVITY OF THIS ACT, THE 
ERC SHALL REASSESS ITS THEN ORGANIZATIONAL STRUCTURE TO 
DETERMINE IF THERE IS A NEED FOR FURTHER RESTRUCTURING OR 
REORGANIZATION, 
WHICH MAY 
INCLUDE ADDITIONAL 
SERVICES, 
DIVISIONS OR PERSONNEL PER DIVISION. THE DBM SHALL APPROVE ANY 
PROPOSED ORGANIZATIONAL RESTRUCTURING WITHIN ONE (1) MONTH 
FROM ITS RECEIPT THEREOF.  
 
THE COMMISSION SHALL CONDUCT AN ASSESSMENT OF THE FITNESS OF 
THE SKILLS AND CAPABILITIES OF EXISTING PERSONNEL ON THE BASIS 
OF THE RESULTS OF SUCH ASSESSMENT, THE COMMISSION MAY 
IMPLEMENT SUCH MOVEMENT IN PERSONNEL TO ESTABLISH THE NEW 
ORGANIZATIONAL STRUCTURE, IN ACCORDANCE WITH APPLICABLE 
LAWS, 
ALIGNED 
WITH 
SUCH 
PERSONNEL’S 
CAPACITY 
AND 
PERFORMANCE; PROVIDED, THAT THE NEW POSITION TO WHICH THEY 
WERE TRANSFERRED TO WILL BE OF THE SAME RANK AND SALARY 
FROM 
ITS 
PREVIOUS 
POSITION 
WITHOUT 
THE 
NECESSITY 
OF 
REAPPOINTMENT.”  
 
SECTION 2. Sec. 39 of Republic Act No. 9136 is hereby amended to read as 
follows: 


 
5 
  
“SEC. 39. Compensation and Other Emoluments for ERC Personnel. - The 
compensation and other emoluments for the ChairPERSON and members of the 
Commission and the ERC personnel shall be exempted from the coverage of 
Republic Act No. 6758, otherwise known as the Salary Standardization Act. For 
this purpose, the schedule of compensation of the ERC personnel, except for the 
initial salaries and compensation of the ChairPERSON and members of the 
Commission, shall be submitted for approval by the President of the Philippines. 
The new schedule of compensation shall be implemented within six (6) months 
from the effectivity of this Act and may be upgraded by the President of the 
Philippines as the need arises: Provided, That in no case shall the rate be 
upgraded more than once a year. 
 
The ChairPERSON and members of the Commission shall initially be entitled to 
the same salaries, allowances and benefits as those of the [Presiding] CHIEF 
Justice and Associate Justices of the Supreme Court, respectively. The 
ChairPERSON and the members of the Commission, upon completion of their term 
or upon becoming eligible for retirement under existing laws, shall be entitled to 
the same retirement benefits and privileges provided for the [Presiding] CHIEF 
Justice and Associate Justices of the Court of Appeals, respectively. 
 
AFTER COMPLETION OF THE TERM WITH THE ERC, THE CHAIRPERSON 
AND MEMBERS OF THE COMMISSIONS SHALL BE PROHIBITED FROM 
ACCEPTING EMPLOYMENT OR APPOINTMENT IN ANY CAPACITY WITH ANY 
REGULATED ENTITY FOR A PERIOD OF THREE (3) YEARS FOLLOWING 
SUCH 
COMPLETION. ALL 
MEMBERS AND 
EMPLOYEES 
OF 
THE 
COMMISSION SHALL BE PROHIBITED FROM APPEARING BEFORE THE 
ERC FOR A PERIOD OF THREE (3) YEARS AFTER SAID COMPLETION OF 
TERM OR TERMINATION OF EMPLOYMENT.” 
 
SECTION 39(A). IMMUNITY FROM SUIT. – THE CHAIRPERSON AND 
MEMBERS OF THE COMMISSION SHALL NOT BE SUBJECT TO ANY 
ACTION, CLAIM OR DEMAND IN CONNECTION WITH ANY ACT DONE OR 
OMITTED BY THEM IN THE PERFORMANCE OF THEIR DUTIES AND 
EXERCISE OF THEIR POWERS EXCEPT FOR THOSE ACTIONS AND 
OMISSIONS DONE IN EVIDENT BAD FAITH OR GROSS NEGLIGENCE.” 
 
SECTION 3. Sec. 40 of Republic Act No. 9136 is hereby amended to read as 
follows: 
  
“SEC. 40. Enhancement of Technical Competence. – The ERC shall establish 
rigorous training programs for its staff for the purpose of enhancing the technical 
competence of the ERC in the following areas: evaluation of technical performance 
and monitoring of compliance with service and performance standards, 
performance-based rate-setting reform, environmental standards and such other 
areas as will enable the ERC to adequately perform its duties and functions. FOR 
THIS PURPOSE, THE ERC SHALL ALLOT NO LESS THAN FIFTEEN 
PERCENT (15%) OF ITS TOTAL ANNUAL APPROVED BUDGET FOR THE 
TRAINING AND UPGRADING OF SKILLS OF ITS PERSONNEL.” 
 
SECTION 4. Sec. 41 of Republic Act No. 9136 is hereby amended to read as 
follows: 
  


 
6 
“SEC. 41. Promotion of Consumer Interests. – The ERC shall handle consumer 
complaints and ensure the adequate promotion of consumer interests. 
 
THE 
ERC 
SHALL 
ESTABLISH 
PROCEDURES 
FOR 
DETERMINING 
LEGITIMATE REPRESENTATION OF CONSUMER ORGANIZATIONS AND 
THE CONDUCT OF FORUM, WHERE CONSUMERS CAN EXPRESS THEIR 
CONCERNS ON POLICIES AND REGULATIONS OUTSIDE THE FORMAL 
RULE-MAKING PROCESSES.  
 
THE ERC SHALL ALSO EXERT EFFORTS TO INFORM CONSUMERS OF 
PENDING PROCEEDINGS, SUBJECT TO EXECUTIVE AND DELIBERATIVE 
PROCESS PRIVILEGES.” 
 
SECTION 5. Sec. 42 of Republic Act No. 9136 is hereby amended to read as 
follows: 
  
“SEC. 42. Budget of the ERC. - The ERC shall enjoy LIMITED fiscal autonomy, 
subject to regular audits by the Commission on Audit. FOR THIS PURPOSE, THE 
ERC SHALL BE ALLOWED TO UTILIZE A MAXIMUM OF FIFTY PERCENT 
(50%) OF ITS COLLECTIONS FROM FEES, ASSESSMENTS, LICENSES, AND 
OTHER CHARGES TO USE FOR ITS BUDGETARY REQUIREMENTS, 
INCLUDING TRAINING, PERSONNEL SERVICE, CAPITAL OUTLAYS, 
MAINTENANCE AND OPERATING EXPENSES, AND THOSE DETERMINED 
BY THE COMMISSION TO BE NECESSARY IN THE PERFORMANCE OF ITS 
FUNCTIONS, 
SUBJECT 
TO 
APPLICABLE 
LAWS, 
RULES, 
AND 
REGULATIONS. [The amount of One hundred fifty million pesos 
(PHP150,000,000.00) is hereby allocated from the existing budget of the ERB 
for the initial operation of the ERC. Any balance shall initially be sourced 
from the Office of the President of the Philippines.] Thereafter, the annual 
budget certified by the ERC, through its ChairPERSON, as necessary to defray its 
expenses shall be provided for in the regular or special appropriations and shall be 
released automatically and regularly.” 
 
SECTION 6. Sec. 43 of Republic Act No. 9136 is hereby amended to read as 
follows: 
  
“SEC. 43. Functions of the ERC. – The ERC shall promote competition, encourage 
market development, ensure customer choice and penalize abuse of market power 
in the restructured electricity industry. In appropriate cases, the ERC is authorized 
to issue cease and desist order after due notice and hearing. Towards this end, it 
shall be responsible for the following key functions in the restructured industry: 
  
(a) 
xxx  
 
(b) 
Within six (6) months from the effectivity of this Act, promulgate, REVIEW 
OR AMEND, WHEN NECESSARY, IN COORDINATION WITH THE DOE, 
and enforce, in accordance with law, THE [a] PHILIPPINE [National] Grid 
Code and THE PHILIPPINE [a] Distribution Code which shall include, but 
not limited to, the following:  
 
xxx 
 
(f) 
In the public interest, establish and enforce a methodology for setting AND 
BENCHMARKING transmission and distribution wheeling rates and retail 


 
7 
rates for the captive market of a distribution utility, taking into account all 
relevant considerations, including the efficiency or inefficiency of the 
regulated entities, THE MODE OF PROCUREMENT OF THE NECESSARY 
POWER SUPPLY FOR DISTRIBUTION UTILITIES AND ANCILLARY 
SERVICES 
OF 
TRANSCO 
OR 
ITS 
CONCESSIONAIRE, 
AND 
COMPLIANCE WITH OTHER DOE AND ERC POLICIES AND 
REGULATIONS. The rates must be such as to allow the recovery of just and 
reasonable costs and a reasonable return on rate base (RORB) to enable 
the entity to operate viably. The ERC may adopt alternative forms of 
internationally-accepted rate-setting methodology as it may deem 
appropriate. The rate-setting methodology so adopted and applied must 
ensure a reasonable price of electricity. The rates prescribed shall be non-
discriminatory, COMPETITIVE AND TRANSPARENT. To achieve this 
objective and to ensure the complete removal of cross subsidies, the cap on 
the recoverable rate of system losses prescribed in Section 10 of Republic 
Act No. 7832, is hereby amended and shall be replaced by caps which shall 
be determined by the ERC based on load density, sales mix, cost of service, 
delivery voltage and other technical considerations it may promulgate.  
 
The ERC shall determine such form or rate-setting methodology, which shall 
promote efficiency. In case the rate setting methodology used is RORB, it 
shall be subject to the following guidelines: 
 
xxx 
 
(i) 
Allow the TRANSCO to charge user fees for ancillary services to all electric 
power industry participants or self-generating entities connected to the grid. 
Such fees shall be BENCHMARKED [fixed] by the ERC after due notice and 
public hearing[.] 
 
xxx 
 
(v) 
SUMMARILY PUNISH FOR CONTEMPT BY A FINE NOT LESS THAN 
FIVE THOUSAND PESOS (PHP5,000.00) BUT NOT EXCEEDING ONE 
HUNDRED 
THOUSAND 
PESOS 
(PHP100,000.00) 
OR 
BY 
IMPRISONMENT NOT EXCEEDING TEN DAYS, OR BOTH, ANY PERSON 
GUILTY OF ANY ACT INTENDED TO INTERRUPT THE HEARING OR 
SESSION OR ANY PROCEEDING BEFORE THE COMISSION, OR WHEN 
A PERSON REFUSES TO BE SWORN IN AS A WITNESS OR TO 
ANSWER AS SUCH WHEN LAWFULLY REQUIRED TO DO SO IN ANY 
HEARING, SESSION, OR INVESTIGATION DULY HELD BY THE 
COMMISSION, ITS MEMBERS OR REPRESENTATIVES. TO ENFORCE 
THE PROVISIONS OF THIS SECTION, THE ERC MAY, IF NECESSARY, 
REQUEST THE ASSISTANCE OF THE PHILIPPINE NATIONAL POLICE 
FOR THE EXECUTION OF ANY ORDER MADE FOR SAID PURPOSE; 
 
All notices of hearings to be conducted by the ERC for the purpose of fixing rates 
or fees shall be published [twice for two successive weeks in two (2) 
newspapers of nationwide circulation] in at least ONE (1) NEWSPAPER OF 
GENERAL CIRCULATION, AND/OR POST ELECTRONICALLY.”  
 
SECTION 7. Sec. 44 of Republic Act No. 9136 is hereby amended to read as 
follows:  
 


 
8 
“SEC. 44. [Transfer of Powers and Functions. – The powers and functions of 
the Energy Regulatory Board not inconsistent with the provisions of this Act are 
hereby transferred to the ERC.] REVIEW BY THE ERC. – IN THE EXERCISE OF 
ITS QUASI-JUDICIAL AND REGULATORY FUNCTIONS, THE ERC SHALL 
IMPLEMENT REGULAR, SUMMARY AND ADMINISTRATIVE PROCEEDINGS, 
AND OTHER PROCESSES THAT SHALL PROMOTE TRANSPARENCY, 
EXPEDIENCY AND CONSISTENCY. 
 
SEC. 44(A). POWER SUPPLY AGREEMENTS. – THE DOE SHALL ISSUE THE 
POLICIES ON THE PROCUREMENT PROCESS FOR ANY POWER SUPPLY 
AGREEMENT 
WHICH 
SHALL 
OBSERVE 
THE 
PRINCIPLES 
OF 
TRANSPARENCY, COMPETITIVENESS, ACCOUNTABILITY, IMPARTIALITY 
AND EFFICIENCY. THE RESULTING POWER SUPPLY AGREEMENTS SHALL 
EMBODY 
THE 
PRINCIPLES 
OF 
QUALITY, 
AFFORDABILITY, 
SUSTAINABILITY AND RELIABILITY OF SUPPLY OF ELECTRIC POWER. 
 
THE ERC SHALL REVIEW AND APPROVE THE POWER SUPPLY 
AGREEMENT IN ACCORDANCE WITH ITS POWERS UNDER SECTION 43 (W) 
OF THIS ACT. 
 
SEC. 44(B). BENCHMARK PRICES AND RATES. –THE ERC SHALL 
DETERMINE THE BENCHMARK FOR THE RANGE OF PRICES AND RATES 
THAT ARE DEEMED REASONABLE FOR BOTH THE END-USERS AND THE 
OPERATIONS OF GENERATION, TRANSMISSION, AND DISTRIBUTION 
ENTITIES.   
 
LOAD DENSITY, SALES MIX, COST OF SERVICE, DELIVERY VOLTAGE, 
RESOURCE AND FUEL, LOCATION AND OTHER TECHNICAL FACTORS 
SHALL BE CONSIDERED IN THE BENCHMARK DETERMINATION. 
 
THE ERC SHALL PUBLISH THE BENCHMARK PRICES AND RATES, WHICH 
SHALL BE REGULARLY UPDATED.  
 
SEC. 44 (C). PROCEEDINGS IN THE ERC. – CASES FILED BEFORE THE ERC 
SHALL BE DECIDED THROUGH REGULAR PROCEEDINGS; PROVIDED, 
HOWEVER, THAT CASES RELATED TO CONTRACTS OR SUBMISSIONS 
THAT ARE CERTIFIED BY THE DOE PURSUANT TO THIS ACT AND WITHIN 
THE BENCHMARK DETERMINED BY THE ERC, INCLUDING POWER SUPPLY 
AGREEMENTS, 
SHALL 
BE 
DECIDED 
THROUGH 
THE 
SUMMARY 
PROCEEDINGS OF THE ERC, WITHOUT NEED OF A HEARING. DECISIONS 
IN SUMMARY PROCEEDINGS SHALL BE LIMITED TO THE DETERMINATION 
OF COMPLIANCE OF THE CONTRACTS OR SUBMISSIONS WITH 
APPLICABLE RULES AND REGULATIONS; PROVIDED FURTHER, THAT 
OTHER CONTRACTS OR SUBMISSIONS THAT ARE NOT SUBJECT TO 
BENCHMARKING MAY BE DECIDED THROUGH SUMMARY PROCEEDINGS 
UPON DETERMINATION OF ERC.  
  
SEC 44(D). ADMINISTRATIVE DECISIONS. – MATTERS REFERRING TO THE 
PERMITTING AND LICENSING MANDATE OF THE ERC AND DO NOT 
REQUIRE 
HEARINGS 
SHALL 
BE 
SUBJECT 
TO 
ADMINISTRATIVE 
PROCEEDINGS. 
 
ADMINISTRATIVE ISSUES SHALL INCLUDE, BUT NOT BE LIMITED TO, THE 
FOLLOWING SUBMISSIONS BY GENERATION, TRANSMISSION, AND 
DISTRIBUTION ENTITIES: 


 
9 
 
i. APPLICATIONS RELATED TO THE RELIABILITY AND VIABILITY OF 
ASSETS, SYSTEMS AND OPERATIONS; 
ii. ANNUAL OR REGULAR SUBMISSIONS, WHETHER ON TECHNICAL, 
LEGAL OR FINANCIAL MATTERS; 
iii. SUBMISSIONS AND REPORTS INCLUDED IN THE REVIEW FOR 
REGULATORY RESET; AND 
iv. ANY OTHER CONTRACTS OR APPLICATIONS DETERMINED BY THE ERC 
AS SUBJECT TO ADMINISTRATIVE DECISION BY THE CHAIRPERSON. 
 
ADMINISTRATIVE 
PROCEEDINGS 
SHALL 
BE 
DECIDED 
BY 
THE 
CHAIRPERSON OF THE ERC. THE CHAIRPERSON MAY DELEGATE THIS 
AUTHORITY TO A MEMBER OF THE COMMISSION OR ANY OFFICER NOT 
LOWER THAN THE LEVEL OF A DIRECTOR.  
 
SEC. 44(E). RULES AND APPEALS. - FROM THE DATE THE CASE IS 
SUBMITTED FOR FINAL RESOLUTION, THE ERC SHALL PROMULGATE 
DECISIONS WITHIN THIRTY (30) DAYS FOR ADMINISTRATIVE PROCESSES, 
SIXTY (60) DAYS FOR SUMMARY QUASI-JUDICIAL PROCESSES, AND ONE 
HUNDRED 
EIGHTY 
(180) 
DAYS 
FOR 
REGULAR 
QUASI-JUDICIAL 
PROCESSES. THE ERC SHALL DETERMINE THE TIMELINES FOR ITS 
OTHER PROCESSES PURSUANT TO RA 11234, AND OTHER APPLICABLE 
LAWS AND REGULATIONS. 
 
MOTIONS FOR RECONSIDERATION OF A DECISION THROUGH  REGULAR, 
SUMMARY, OR ADMINISTRATIVE PROCEEDINGS OF THE COMMISSION 
SHALL BE FILED WITHIN FIFTEEN (15) DAYS AFTER THE RECEIPT OF THE 
DECISION. 
THE 
ERC 
SHALL 
RESOLVE 
THE 
MOTION 
FOR 
RECONSIDERATION WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE 
MOTION.  
 
APPEALS SHALL FILED IN ACCORDANCE WITH THE RULES OF COURT. 
 
WITHIN SIX (6) MONTHS FROM THE EFFECTIVITY OF THIS ACT, THE ERC 
SHALL ISSUE THE RULES OF PROCEDURE FOR REGULAR AND SUMMARY 
QUASI-JUDICIAL, AND ADMINISTRATIVE PROCEEDINGS, AS PROVIDED 
FOR IN THIS ACT. 
 
THE RULES OF PROCEDURE TO BE ISSUED BY THE ERC SHALL GOVERN 
ALL CASES FILED AFTER THE EFFECTIVITY OF SUCH RULES, AND ALL 
PENDING PROCEEDINGS, EXCEPT TO THE EXTENT THAT IN THE OPINION 
OF THE COMMISSION, THEIR APPLICATION WOULD NOT BE FEASIBLE, 
CAUSE UNDUE DELAY OR WOULD WORK INJUSTICE, IN WHICH CASE THE 
RULES UNDER WHICH THE CASES WERE FILED SHALL GOVERN.”  
 
SECTION 8. Sec. 44 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 markets.  
 


 
10 
xxx 
 
To promote true market competition and prevent harmful monopoly and market 
power abuse, the ERC shall enforce the following safeguards:  
 
xxx 
 
(b) 
xxx  
 
CONTROL, AS DEFINED IN SECTION 49(F) OF REPUBLIC ACT NO. 
10667, OTHERWISE KNOWN AS THE PHILIPPINE COMPETITION ACT, 
REFERS TO THE ABILITY TO SUBSTANTIALLY INFLUENCE OR DIRECT 
THE ACTIONS OR DECISIONS OF AN ENTITY, WHETHER BY 
CONTRACT, AGENCY OR OTHERWISE. 
 
IN DETERMINING THE CONTROL OF AN ENTITY, THE COMMISSION 
MAY CONSIDER THE FOLLOWING: CONTROL IS PRESUMED TO EXIST 
WHEN THE PARENT OWNS DIRECTLY OR INDIRECTLY, THROUGH 
SUBSIDIARIES, MORE THAN ONE HALF (1/2) OF THE VOTING POWER 
OF AN ENTITY, UNLESS IN EXCEPTIONAL CIRCUMSTANCES, IT CAN 
CLEARLY BE DEMONSTRATED THAT SUCH OWNERSHIP DOES NOT 
CONSTITUTE CONTROL. CONTROL ALSO EXISTS EVEN WHEN AN 
ENTITY OWNS ONE HALF (1/2) OR LESS OF THE VOTING POWER OF 
ANOTHER ENTITY WHEN: (A) THERE IS POWER OVER MORE THAN 
ONE HALF (1/2) OF THE VOTING RIGHTS BY VIRTUE OF AN 
AGREEMENT WITH INVESTORS; (B) THERE IS POWER TO DIRECT OR 
GOVERN THE FINANCIAL AND OPERATING POLICIES OF THE ENTITY 
UNDER A STATUTE OR AGREEMENT; (C) THERE IS POWER TO 
APPOINT OR REMOVE THE MAJORITY OF THE MEMBERS OF THE 
BOARD OF DIRECTORS OR EQUIVALENT GOVERNING BODY; (D) 
THERE IS POWER TO CAST THE MAJORITY VOTES AT MEETINGS OF 
THE BOARD OF DIRECTORS OR EQUIVALENT GOVERNING BODY; (E) 
THERE EXISTS OWNERSHIP OVER OR THE RIGHT TO USE ALL OR A 
SIGNIFICANT PART OF THE ASSETS OF THE ENTITY; (F) THERE EXIST 
RIGHTS OR CONTRACTS WHICH CONFER DECISIVE INFLUENCE ON 
THE DECISIONS OF THE ENTITY;  
 
(c) 
[(c)] For the first five (5) years from the establishment of the wholesale 
electricity spot market, no distribution utility shall source more than ninety 
percent (90%) of its total demand from bilateral power supply contracts. 
 
xxx 
 
The ERC shall within one (1) year from the effectivity of this Act, promulgate 
rules and regulations to ensure and promote competition, encourage market 
development and customer choice and discourage/ penalize abuse of market 
power, cartelization and any anti-competitive or discriminatory behavior, in 
order to further the intent of this Act and protect the public interest. Such rules 
and regulations shall define the following: 
 
xxx 
 
The ERC shall, motu proprio, monitor and penalize any market power abuse or 
anti-competitive or discriminatory act or behavior by any participant in the electric 
power industry. Upon finding that a market participant has engaged in such act or 


 
11 
behavior, the ERC shall stop and redress the same. Such remedies shall, without 
limitation, include the imposition of price controls, issuance of injunctions, 
requirement of divestment or disgorgement of excess profits and imposition of fines 
and penalties pursuant to this Act.” 
 
SECTION 9. Sec. 46 of Republic Act No. 9136 is hereby amended to read as 
follows:  
 
“SEC. 46. Fines and Penalties. - THE FOLLOWING fines and penalties [that] shall 
be imposed [by the ERC] for any violation of or non-compliance with this Act or the 
IRR: xxx  
 
A. ADMINISTRATIVE FINES AND PENALTIES. - BY ANY JURIDICAL 
ENTITIES 
ENGAGED 
IN 
THE 
GENERATION, 
TRANSMISSION, 
DISTRIBUTION AND SUPPLY OF ELECTRICITY, THE FINE shall range from 
a minimum of fifty thousand pesos (₱50,000.00) to a maximum of FIVE 
HUNDRED million pesos (₱500,000,000.00). 
 
THE COMMISSION MAY ORDER THAT SUCH AMOUNT OF FINES AND 
PENALTIES IMPOSED FOR VIOLATION OF THIS ACT BE IMMEDIATELY 
APPLIED AS REFUND IN THE RATES CHARGED BY THE OFFENDING 
ENTITY TO THE END-USERS AFFECTED BY SUCH VIOLATION OR NON-
COMPLIANCE. 
 
THE ERC SHALL PROMULGATE THE SCHEDULE OF PENALTIES, WITH 
CONSIDERATION OF THE CIRCUMSTANCES SURROUNDING THE 
VIOLATION OR NONCOMPLIANCE, SUCH AS, BUT NOT LIMITED TO, 
RECIDIVISM, PERIOD OF NONCOMPLIANCE, OR ABUSE OF MARKET 
POWER, 
CARTELIZATION, 
OR 
ANTI-COMPETITIVE 
OR 
DISCRIMINATORY 
BEHAVIOR. 
THE 
ERC 
MAY 
IMPOSE 
THESE 
PENALTIES 
FOR 
EVERY 
DAY 
OF 
VIOLATION, 
DELAY, 
OR 
NONCOMPLIANCE. 
 
The administrative sanction that may be imposed by the ERC shall be without 
prejudice to the filing of a criminal action, if warranted. 
 
B. CRIMINAL AND CIVIL LIABILITIES. – BY ANY PERSON, A FINE OF NOT 
LESS THAN FIFTY THOUSAND PESOS (₱50,000.00) BUT NOT MORE 
THAN FIFTY MILLION PESOS (₱50,000,000.00), OR BY IMPRISONMENT 
OF NOT LOWER THAN SIX (6) YEARS AND ONE (1) DAY AND NOT 
HIGHER THAN TWELVE (12) YEARS, OR BOTH, AT THE DISCRETION OF 
THE COURT. 
 
WHEN THE ENTITIES INVOLVED ARE JURIDICAL PERSONS, THE 
PENALTY OF IMPRISONMENT SHALL BE IMPOSED ON ITS OFFICERS, 
DIRECTORS, OR EMPLOYEES HOLDING MANAGERIAL POSITIONS, 
WHO ARE KNOWINGLY AND WILLFULLY RESPONSIBLE FOR SUCH 
VIOLATION. This rule shall apply to the members of the Board who knowingly 
or by neglect allows the commission or omission under the law. 
 
To ensure compliance with this Act, the CRIMINAL AND CIVIL PENALTIES 
[penalty of prision correccional or a fine ranging from Five thousand 
pesos (P5,000.00) to Five million pesos (P5,000,000.00), or both, at the 
discretion of the court,] shall be imposed on any person, including but not 


 
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limited to the president, member of the Board, Chief Executive Officer or Chief 
Operating Officer of the corporation, partnership, or any other entity involved, 
found guilty of violating or refusing to comply with any provision of this Act or 
its IRR, other than those provided herein. 
 
If the offender is a government official or employee, he shall, in addition, be 
dismissed from the government service with prejudice to reinstatement and with 
perpetual or temporary disqualification from holding any elective or appointive 
office. 
 
If the offender is an alien, he may, in addition to the penalties prescribed, be 
deported without further proceedings after service of sentence. 
 
C. OFFER OF COMPROMISE. - ANY PERSON OR ENTITY SUBJECT TO AN 
ADMINISTRATIVE PROCEEDING IN THE COMMISSION THAT MAY 
RESULT IN THE IMPOSITION OF FINES, REFUNDS AND/OR PENALTIES, 
PURSUANT TO THIS SECTION, MAY ENTER A PLEA OF NOLO 
CONTENDERE, IN WHICH SUCH PERSON OR ENTITY DOES NOT 
ACCEPT NOR DENY RESPONSIBILITY FOR THE CHARGES BUT AGREES 
TO ACCEPT THE OBLIGATION TO PAY FINES, REFUNDS AND/OR 
PENALTIES AS IF ALREADY FOUND LIABLE. THE PLEA CANNOT BE 
USED AGAINST SUCH PERSON OR ENTITY TO PROVE LIABILITY IN A 
CRIMINAL ACTION NOR IN ANOTHER CAUSE OF ACTION: PROVIDED,  
THAT A PLEA OF NOLO CONTENDERE MAY BE ENTERED ONLY WITH 
THE PRIOR APPROVAL OF THE COMMISSION EN BANC WHICH SHALL 
ACCEPT IT ONLY AFTER WEIGHING ITS EFFECT ON THE PARTIES AND 
THE CONSUMERS: PROVIDED, FURTHER, THAT SHOULD THE 
COMMISSION ACCEPT THE PLEA OF NOLO CONTEDERE, THE FINE, 
REFUND AND/OR PENALTY TO BE ADJUDGED FOR PAYMENT SHALL 
NOT BE LESS THAN FIFTY PERCENT (50%) OF THE CORRESPONDING 
FINE, REFUND AND/OR PENALTY FOR THE SUBJECT OFFENSE:  
PROVIDED, FURTHERMORE, THAT ANY PERSON OR ENTITY  CAN NOT 
ENTER INTO A PLEA OF NOLO CONTENDERE FOR A VIOLATION OF ITS 
FRANCHISE OR CERTIFICATE OF PUBLIC CONVENIENCE AND 
NECESSITY, AND SUCH OTHER CASES AS DETERMINED BY THE 
COMMISSION: PROVIDED, FINALLY, THAT THE COMMISSION SHALL 
ISSUE GUIDELINES FOR THIS PROVISION, SUBJECT TO PUBLIC 
CONSULTATION. 
 
D. ROLE OF THE DEPARTMENT OF JUSTICE. - CIVIL AND CRIMINAL 
ACTIONS AND PROCEEDINGS INSTITUTED ON BEHALF OF THE 
GOVERNMENT UNDER THE AUTHORITY OF THIS ACT OR OTHER LAWS 
ENFORCED BY THE ERC SHALL BE BROUGHT IN THE NAME OF THE 
GOVERNMENT OF THE PHILIPPINES AND SHALL BE PROSECUTED AND 
HANDLED BY THE ERC WITH THE ASSISTANCE OF THE DEPARTMENT 
OF JUSTICE (DOJ): PROVIDED, THAT THE DETERMINATION OF THE 
EXISTENCE OF PROBABLE CAUSE AND THE SUBSEQUENT FILING OF 
ANY CRIMINAL OR CIVIL CASE WITH THE PROPER COURT AGAINST 
VIOLATORS OF THIS ACT SHALL EXCLUSIVELY BELONG TO THE DOJ: 
PROVIDED, HOWEVER, THAT NO CIVIL OR CRIMINAL ACTION FOR THE 
RECOVERY OF DUTIES OR THE ENFORCEMENT OF ANY FINE, PENALTY 
OR FORFEITURE UNDER THIS ACT SHALL BE FILED IN COURT 
WITHOUT THE APPROVAL OF THE ERC. 
 


 
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E. ADJUSTMENT OF FINES AND PENALTIES. - THE FINES AND PENALTIES 
MAY BE ADJUSTED TO ITS PRESENT VALUE EVERY FIVE (5) YEARS 
USING THE CONSUMER PRICE INDEX (CPI) AS PUBLISHED BY THE 
PHILIPPINE STATISTICS AUTHORITY. 
 
Any case which involves question of fact shall be appealable to the Court of Appeals 
and those which involve question of law shall be directly appealable to the Supreme 
Court. 
 
In addition, Congress may, upon recommendation of the DOE and/or ERC, revoke 
such franchise or privilege granted to the party who violated the provisions of this 
Act.”  
 
SECTION 10. Repealing Clause. – All laws, decrees, rules and regulations, or 
portion thereof, inconsistent with this Act are hereby repealed or modified accordingly. 
 
SECTION 11. Implementing Rules and Regulations. – The DOE and ERC 
shall, in consultation with relevant government agencies and all stakeholders, 
promulgate the Implementing Rules and Regulation (IRR) of the Act within six (6) 
months from the effectivity of this Act.  
 
SECTION 12. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
 
Approved,