FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
Senate Bill No. 2911 
'11 
JUL 25 i)7 :02 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The number of Filipinos below poverty line continues to 
bloat each year, which makes the revision and strict implementation of 
government policies on social protection, critical, to address poverty in 
the next few years. 
The problem on poverty has been attributed to different 
reasons, and one of those is the cost of basic human needs, which 
never fails to burden the Filipino consumers every year. 
Electricity is an indispensable part of our everyday life. 
According to the study conducted by International Energy Consultants, 
and reported out by Meralco and the Philippine Chamber of Commerce 
(PCC!), our country has the most expensive electricity in the whole of 
Asia. It was further revealed that with average retail rate of electricity 
of 18.1 US cents per kilowatt/hour in the Philippines, it has eased out 
Japan at the top of having the most expensive electricity. The study 
also found that household consumers in the Philippines pay highest at 
an average of Pl0 per kilowatt/hour, shouldering the biggest burden of 
high electric rates. The high cost of electricity in the Philippines was 
traced by the group to the fact that all costs -
from producing power 
to distribution and taxes -
are passed on to consumers. 
It is noteworthy that under our law, systems loss 
obtained from illegal use/theft or failure in the administration or 
distribution of electricity, is passed on to consumers, which obviously 
is due to inefficiency of electric providers, hence, must be borne by 
them. 
With this, it becomes necessary to reconsider Republic Act 
No. 
7832, 
otherwise 
known 
as 
"Anti-Electricity 
and 
Electric 


Transmission lines/materials Pilfirage Act of 1994," which bears the 
provision on the recovery of system losses by electric providers. 
Approval of this measure is earnestly sought. 
GOY EJERCITO ESTRADA 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'11 
JUL 25 P7 :02 
SENATE 
Senate Bill No. 2911 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING REPUBLIC ACT NO. 7832, OTHERWISE KNOWN AS 
"ANTI-ELECTRICITY 
AND 
ELECTRIC 
TRANSMISSION 
LINES/MATERIALS, PILFERAGE ACT OF 1994", AND FOR OTHER 
PURPOSES. 
Be it enacted by the Senate and the House of the Representatives of 
the Philippines in Congress Assembled: 
SECTION 1. -
Sections 10 and 11 of RA 7832 are hereby 
repealed, thereby totally removing the recoverable rate of system 
losses allowed to private electric utilities and rural cooperatives. The 
subsequent Sections shall then be numbered accordingly. 
SEC. 2. A new paragraph shall be inserted after paragraph b of 
Section 4 to read as follows: 
"FOR THE PURPOSE OF THIS ARTICLE, SUBSTANTIAL 
DECREASE IN THE MONTHLY ELECTRIC CONSUMPTION OF 
A SPECIFIC HOUSEHOLD SHALL NOT CONSTITUTE A 
PRIMA FACIE EVIDENCE OF ILLEGAL USE OF ELECTRICITY 
AND 
SHALL 
NOT 
WARRANT 
THE 
IMMEDIATE 
DISCONNECTION OF THEIR ELECTRIC UTILITY. 
HOWEVER, IT SHALL BE SUBJECT TO AN INVESTIGATION, 
WHEREBY THE HOUSEHOLD OWNERS SHALL BE GIVEN A 
NOTICE AND 
AN 
OPPORTUNITY TO 
BE 
HEARD AND 
CONTROVERT THE SUSPECTED VIOLATION." 
SEC. 3. Section 5 is hereby amended to read as follows: 


"Incentives. - An incentive scheme by way of a monetary 
reward in [the minimum amount of Five thousand pesos 
(P5,000)] 
AN 
AMOUNT NOT 
LESS 
THAN 
EIGHT 
THOUSAND PESOS (PS,OOO) shall be given to any 
person who shall report to the NPC or police authorities 
any act which may constitute a violation of Section 3 
hereof. The Department of Energy (DOE), in consultation 
with the [NPC] 
ERC AND TRANSCO, shall issue the 
necessary guidelines for the proper implementation of this 
incentive scheme within thirty (30) days from the 
effectivity of this Act." 
SEC. 4. Implementing Rules and Regulations. The Department of 
Energy, Energy Regulatory Board and the TRANCO, shall jOintly 
formulate the necessary amendment to the existing Rules and 
Regulations implementing RA 7832, within 15 days from the effectivity 
of this Act. 
SEC. 5. Repealing Clause - All laws or regulations inconsistent 
with the provisions of this Act are hereby amended or repealed 
accordingly. 
SEC. 6. This Act shall take effect after the fifteen (15) days 
following its publication in at least two (2) newspaper of general 
circulation. 
Approved,