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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

Second Regular Session

r 8786
House Bill No.

Introduced by Representative Presley C. De Jesus, Philreca Party-List
Representative Godofredo N. Guya, RECOBODA Party-List
Representative Sergio C. Dagooc, APEC Party-List
Representative Adriano A. Ebeas, Ako Padayon Pilipino Party-List

“AN ACT PROVIDING FOR THE NATIONAL POLICY AND FRAMEWORK
FOR ENERGY ADVOCACY THROUGH THE CREATION OF THE ENERGY
COUNSEL OFFICE”

Explanatory Note

The enactment of Republic Act No. 9136 or the Electric Power Industry Reform
Act of 2001 (EPIRA) marked the era of paradigm shift from a government monopolized
energy sector towards a liberated and private sector-driven industry. Corollarily, the
said law mandates the Energy Regulatory Commission (ERC) to eponymously regulate
matters to balance the interests of the entire energy industry players. However, the
herculean tasks bestowed upon ERC makes it hard for them to balance these battling
interests from the entire energy spectrum—especially for the captive market end-user
consumers.

Despite the presence of ERC, the captive market end-users do not have an office
of public interest lawyers that will represent their grievances against the incessant
demands of energy players—from generation to distribution utilities—who have always
a group of legal gladiators at their disposal to fight for their corporate interest.

Thus, it is imperative to create an institution to represent solely the interest of
end-users in rate-setting, rule-making, and other energy-related cases and proceedings


before all government agencies including its judicial and quasi-judicial organs: The
Tribune of the End-User Consumers.

This bill seeks to create an Energy Counsel Office (ECO) as an institution tasked
to realize the aforementioned premises and ensure a low and reasonable electricity
rates for the end-user consumers who are held captive in a private sector dominated
power industry.

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

SERGIO Re

APEC Party-List Representative

Mee

Ako Padayon Pilipino Party-List Representative

co UYA
RECQBODA Party-List Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

Second Regular Session

8786
House Bill No.

Introduced by Representative Presley C. De Jesus, PHILRECA Party List
Representative Godofredo N. Guya, RECOBODA Party List
Representative Sergio C. Dagooc, APEC Party List
Representative Adriano A. Ebcas, Ako Padayon Pilipino Party List

AN ACT
PROVIDING FOR THE NATIONAL POLICY AND FRAMEWORK FOR
ENERGY ADVOCACY THROUGH THE CREATION OF THE ENERGY
COUNSEL OFFICE

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

SEC. 1. Short Title. — This Act shall be referred to as the "Energy Counsel Act
of 2020."

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to
recognize the right of end-users to reasonable rates, to adequate and reliable services,
and to transparent processes involving these rates and services. Towards this end,
there is a need for institutionalized and independent end-user representation in rate-
setting, rule-making, and other energy related cases and proceedings before
government agencies including judicial and quasi-judicial bodies.

SEC. 3. The Energy Counsel Office (ECO). — The ECO is hereby created which
shall be an independent and autonomous office attached to the Department of Justice
(DOJ) for purposes of policy and coordination in accordance with Section 38(3),
Chapter 7, Book IV of Executive Order No. 292, as amended.


SEC. 4. Powers and Functions. - The ECO shall be a public legal office that
shall represent all captive market end-users in the energy sector, and matters affecting
the public interest before any department, commission, agency, or court requiring the
services of a lawyer. It shall independently discharge its mandate towards the best
interest of all captive end-users, ensuring least cost without compromising safety,
reliability, and sufficient service. Towards this end, the ECO shall:

(a) Initiate, intervene, and represent all end-users, in the following:

(a) Rate-setting, rule-making, and other energy related cases, complaints,
proceedings, and consultations before the Department of Energy (DOE),
Energy Regulatory Commission (ERC), National Electrification
Administration (NEC), Philippine Competition Commission (PCC), and
other judicial and quasi-judicial bodies; and

(b) Actions before any trial or appellate court, including the Supreme Court,
which involve the validity of any decision, memoranda, rule, regulation,
circular, or order of the DOE, ERC, NEC, PCC, and other departments,
commissions, and agencies insofar as these decisions and policy
issuances affect energy rates and services;

(2) Monitor all issuances of the DOE, ERC, NEC, PCC, and other departments,
commissions, and agencies and formulate and issue the necessary comments or
legal memoranda insofar as these affect energy rates and services;

(3) Evaluate and act upon requests and complaints from end-users concerning the
matters set forth in items (1) and (2), except that any court proceedings initiated
by the ECO must be brought on behalf of the Republic of the Philippines and
not on behalf of the captive market end-user. The initiation or continuation of
any proceedings is in the sole discretion of the ECO.

(4) Conduct investigations, initiate studies, conduct research, present comments
and testimony before governmental bodies, issue reports, and engage in regular
information, education, and communication programs for all captive market
end-users on laws, rules, regulations, decisions, circulars, and orders that affect
energy rates and services, including end-user rights and remedies

(5) Consult directly with end-users on a regular basis in order to determine the
concerns of end-users with respect to electricity rates;

(6) Be furnished or served, as the case may be, by departments, commissions, and
agencies with all documents, notices, petitions, applications, complaints,
answers, motions, and other pleadings in all related cases, complaints,
proceedings, and consultations;


(7) Have the right to access, free of charge, all files, records, and documents in the
DOE, ERC, NEC, PCC and other departments, commissions, and agencies
pertaining to energy related cases, complaints, proceedings, and consultations:
Provided, That the files, records, and documents do not pertain to the following:

(a) Personnel information;

(b) Confidential communications between commissioners, judges, or
justices and general counsels on records relating to proceedings in which
the ECO is a party to; and

(c) Confidential information declared as such by the ERC.

ECO lawyers shall have the authority to administer oaths in connection with the
performance of their duty.

SEC. 5. Representation of indigent litigants - The ECO shall independently
discharge its mandate to render, free of charge, legal representation, assistance, and
counselling to indigent persons in cases falling under Sec. 4(1) of this law. In the
exigency of the service, the ECO may be called upon by proper government authorities
to render such service to other persons, subject to existing laws, rules and regulations.

SEC. 6. The Energy Counsel and Deputy Energy Counsels. — The Energy
Counsel (EC) shall head the ECO, shall have the primary authority and responsibility
for the effective exercise of its mandate and the discharge of its powers and functions,
and shall be assisted by three (3) Deputy Energy Counsels. In case of temporary
absence of the EC, a Deputy EC shall be designated as the Officer-in-Charge of the ECO.

The EC and Deputy ECs shall be natural-born citizens of the Philippines, at least
thirty-five (35) years of age, with at least seven (7) years of practice in law, and with
proven competence, integrity, probity, and independence: Provided, That the EC shall
have at least six (6) years of practice in the field of energy, and the Deputy EC shall
have at least four (4) years of practice in the field of energy. Provided finally, that they
shall not be affiliated with any energy company, as a member of the board, officer,
employee, or consultant, at least one (1) year before their respective appointments.

SEC. 7. Appointment, Term, and Rank. — The EC shall be appointed by the
President, who shall subsequently appoint the Deputy ECs. They shall serve for a term
of six (6) years and may be reappointed: Provided, That for the first appointees, the EC
and Deputy ECs shall hold office until the end of term of the appointing President.

The EC and Deputy ECs shall have the same rank, salaries, allowances, and
retirement benefits as the Prosecutor General and Senior Deputy State Prosecutor of
the National Prosecution Service respectively: Provided, That their retirement benefits


shall be prorated in accordance with Section 21 of Republic Act No. 10071, otherwise
known as the Prosecution Services Act.

SEC 8. Prohibitions. — The EC and Deputy EC shall be prohibited from:

(2) Serving as a member of the board, officer, employee, or consultant of any energy
company in the course of their respective terms of office: Provided, That this
prohibition shall also apply to their family members up to the third degree of
consanguinity or affinity;

(2) Having any interest, ownership, or stake in any energy company in the course
of their respective terms of office: Provided, That this prohibition shall also
apply to their family members up to the third degree of consanguinity or affinity;

(3) Being members of a political party and committee, or engaging in any partisan
political activity in the course of their respective terms of office; and

(4)To enter any energy-related businesses in the course of two (2) years after
relinquishing the post from any reason thereof.

When any of the foregoing acts is done in collusion with private individuals or
corporations, the private individuals or corporation shall likewise be liable for the
offense.

In addition, the public officer involved shall also suffer the penalty of temporary
disqualification from public office, while the private individual or corporation shall
be permanently disqualified from transacting business with the Government.

Private individuals who commit any of the following acts, including any public
officer, who conspires with them, shall suffer the penalty of Prisién mayor or not
less than six (6) years and one (1) day but not more than twelve (12) years:

SEC 9. Organizational Structure and Plantilla Positions. — The Department
of Justice shall submit its temporary organizational structure and plantilla positions to
the Department of Budget and Management (DBM) not later than six (6) months from
the effectivity of this Act.

The ECO, upon approval of the DOJ, may request the DBM for any change in the
organizational structure and plantilla positions after a comprehensive review resulting
to a finding that any alteration will improve the discharge of the ECO's powers and
functions: Provided, That the DBM shall render a decision on such request within six
(©) months from submission.

The ECO shall have legal, technical, and administrative personnel in its
organizational structure and staffing complement, and may hire consultants as expert
witnesses or technical advisors as it finds necessary for the full and efficient discharge
of its powers and functions. All employees and consultants shall be subject to civil


service laws, rules, and regulations: Provided, That all employees shall be subject to
Republic Act No. 6758, otherwise known as the Salary Standardization Act.

SEC 10, Removal and Vacancy. — The EC and Deputy ECs shall not be
removed or suspended, except for cause provided by law. The President may remove
the EC or Deputy ECs for malfeasance, misfeasance, or nonfeasance in office, or for
any reason which renders any of them ineligible for appointment, incapable, or unfit
to discharge the mandate, powers, and functions of the ECO.

In case of death, permanent incapacity, removal, or resignation of the incumbent
EC or Deputy ECs, the President may appoint or designate one, as the case may be, in
an acting capacity until a new EC or Deputy EC has been appointed: Provided, That
the new appointment shall only be for the unexpired term of the predecessor.

SEC 11. Exemption from Fees and Costs of Suits. — The ECO shall be exempt
from payment of docket and other fees incidental to instituting an action in court and
other quasi-judicial bodies, as an original proceeding or on appeal.

SEC. 12. Costs of Suit. — The costs of the suit, attorney's fees, and contingent
fees imposed upon adversarial parties of the ECO after a successful litigation shall be
deposited in the National Treasury.

SEC. 13. Franking Privilege. —The ECO may, free of charge, transmit through
ordinary mail, registered mail, or courier service for the transmittal of official
communications and papers directly connected with the conduct of its powers,
functions, or exercise of administrative supervision over its personnel.

SEC. 14. Grant of Special Allowances. — The EC, Deputy EC, service or
division heads, and lawyers shall be granted special allowances in amounts to be
determined by the DBM: Provided, That the grant of said special allowances shall not
exceed one hundred percent (100%) of the basic salary of the ECO officials and lawyers:
Provided further, That special allowances shall be paid from costs of suit, attorney's
fees and contingent fees deposited in the National Treasury pursuant to Section 11 of
this Act: Provided finally, That whenever the funding source is insufficient, the special
allowance shall be paid through the General Appropriations Act.

SEC. 15. Appropriations. The amount necessary for the _ initial
implementation of this Act in the amount of two hundred million pesos
(P200,000,000.00) shall be taken from the budget of the DOJ. Thereafter, the amount
of two hundred million pesos (P200,000,000.00) shall be automatically appropriated
and included in the annual General Appropriations Act every year which may be
increased as may be necessary for the continued implementation of this Act.

SEC. 16. Implementing Rules and Regulations. — Within ninety (90) calendar
days from the approval of this Act, the DOJ, in consultation with the DBM, government


energy agencies, and private energy stakeholders, shall adopt and issue the rules and
regulations for the effective implementation of this Act.

SEC. 17. Congressional Oversight. — The Joint Congressional Energy
Commission shall exercise oversight powers over the implementation of this Act.

SEC. 18. Amendatory Clause. — Section 13 of Republic Act No. 7638, otherwise
known as the Department of Energy Act of 1992, as amended, is hereby further
amended.

SEC. 19. Separability Clause. — Any portion or provision of this Act, which
may be declared unconstitutional or invalid shall not have the effect of nullifying other
portions or provisions hereof.

SEC. 20. Repealing Clauses. — All laws, ordinances, rules, regulations and
other issuance or parts thereof, which are inconsistent with this Act, are hereby
amended, modified, or repealed accordingly.

SEC, 21. Effectivity Clause. — This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or at least two (2) newspapers of general
circulation.

Approved,