EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S. B. NO. 
°°47
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RECEIVED
Introduced by SENATOR JOEL VILLANUEVA
AN ACT PENALIZING THE UNJUSTIFIED INTERRUPTION 
OF SERVICE PROVIDED BY DISTRIBUTION UTILITIES AND 
TELECOMMUNICATIONS AND BROADCASTING ENTITIES
EXPLANATORY NOTE
It is not unusual to see posts in social media of customers of public 
utilities complaining on the failure of a public utility to immediately address 
their concern. This is even compounded by the fact that despite the service 
interruption, customers are still expected to pay the full price of their utility bill 
or plan. Water and electric distribution utilities and telecommunications and 
broadcasting entities continue to collect the bill, as if nothing happened, 
without any compensation given to the customers or penalty for the 
opportunity lost suffered by the customers by reason of their unjustified failure 
to address the customer’s complaint immediately.
For example, in March 2019, Metro Manila residents experienced water 
shortage due to the failure of Manila Water Co. Inc. to anticipate and prepare 
for an increase in demand in water supply, which was further aggravated by 
the effects of El Nino. Around 52,000 residents reportedly did not have water 
supply for more than six days during the summer season, and residents were 
seen lining up for rationed water. 1 Despite this failure, Manila Water 
Company, the concerned water distribution utility, would have gone with 
business as usual, if not for the public clamor and the media attention given to 
the issue, which caused it to voluntarily waive the bill of the affected 
customers for the month of March.2
' 2019, March 12. EXPLAINER: Why is there a water shortage in Metro Manila? Retrieved from: https://news abs- 
cbn.com/news/03/12/19/explainer-whv-is-there-a-water-shortaae-in-metro-manila (date last accessed: July 5, 2019).
^ 2019, March 27 
Manila Water implements a voluntary, one-time bill waiver scheme. Retrieved from:
https://businessmirror.com.ph/2019/03/27/manila-water-implemenls-voluntarv-one-time-bill-waiver-scheme/ (dale last 
accessed: July 5, 2019)


This bill requires seeks to compensate the affected customers and 
penalize water and electric distribution utilities and public telecommunications 
or broadcasting entities for service interruption. Under this bill, if service 
interruption lasts for eight (8) hours or more for prepaid services or services 
with a fixed regular fee, the customer is entitled to a refund or deduction on 
the bill corresponding to the month when the service interruption occurred, as 
the case may be, equivalent to the amount of the prepaid service or 
prescribed monthly bill divided by the number of days covered by the plan and 
multiplied by the number of days the interruption occurred.
This bill also mandates these public utilities to address all customer 
complaints arising from service interruption or other similar problems within 
one day from receipt of the complaint. Failure to address such complaint 
within this period will make the concerned entity liable for a penalty payable to 
the customer equivalent to 0.5% of the bill for every day of delay, but in no 
case more than twenty percent (20%) of the total bill.
This bill seeks to give relief to our hardworking citizens who expect 
uninterrupted and quality service from those who hold themselves up to be 
capable of providing good service.
The immediate passage of this bill is earnestly sought.
SENATOR J p E L  VILLANUEVA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S. B. NO. 347
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REcrii'.'.Dr-
Introduced by SENATOR JOEL VILLANUEVA
AN ACT PENALIZING THE UNJUSTIFIED INTERRUPTION 
OF SERVICE PROVIDED BY DISTRIBUTION UTILITIES AND 
TELECOMMUNICATIONS AND BROADCASTING ENTITIES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Declaration of Policy. -  It is the policy of the State to ensure
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the quality, reliability, security and affordability of the supply of electric power,
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water, communications technology and other public services.
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It is also the policy of the State to ensure transparent and reasonable prices of
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electricity, water, telecommunications services and other public services in a
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regime of free and fair competition and full public accountability to achieve
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greater operational and economic efficiency and enhance the competitiveness
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of Philippine products in the global market.
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SEC. 2. Unjustified Interruption of Service. -  In case the service provided
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by electric and water distribution utilities, public telecommunications entities
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and broadcasting companies is interrupted, the concerned entity shall act on
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customer complaints regarding service interruption or other similar problems
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within one (1) day from the date the complaint, written or otherwise, vjas
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lodged with it; Provided, That if the concerned entity unreasonably fails to act
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within this period, except when the cause of such delay or failure is due to
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fortuitous events or causes beyond the control of the concerned entity, it shall
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be liable for a penalty payable to the customer, equivalent to 0.5% of the bill
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corresponding to the period when the interruption occurred for every day of
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delay, but in no case more than twenty percent (20%) of the bill; Provided
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further, That nothing herein shall prevent the appropriate regulatory
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agency/ies from imposing the penalties prescribed under relevant laws and
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regulations; Provided finally, That the penalty herein imposed is separate from


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the refund or deduction referred to in the paragraph below for prepaid 
services or services with a fixed regular fee.
For prepaid services or services with a fixed regular fee, if service interruption 
lasts for eight (8) hours or more, the customer shall be entitled to a refund or 
deduction on the bill corresponding to the month when the service interruption 
occurred, as the case may be, equivalent to the amount of the prepaid service 
or prescribed monthly bill divided by the number of days covered by the 
prepaid service or prescribed tnonthly bill and multiplied by the number of 
days the interruption occurred.
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For this purpose, the distribution utility, telecommunications or broadcasting 
entity shall file a monthly report to the appropriate regulatory agency detailing 
the service interruptions that occurred during the covered period, ttie 
complaints lodged before it and the actions taken on each complaint.
Any dispute as to the propriety of the refund or deduction or penalty imposed 
in accordance with this Section shall be resolved by the appropriate regulatory 
agency, upon appropriate complaint.
SEC. 3. Implementing Rules and Regulations. -  Within sixty (60) days from 
the implementation of this Act, the Energy Regulatory Commission, National 
Water Resources Board, Metropolitan Waterworks and Sewerage System, 
Local 
Water 
Utilities 
Administration, 
National 
Telecommunications 
Commission, and other relevant government agencies, upon consultation with 
relevant stakeholders, shall promulgate the necessary rules and regulations to 
implement the provisions of this Act.
SEC. 4. Separability Clause. -  If any provision or part hereof, is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting.
SEC. 5. Repealing Clause. -  Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to or inconsistent with, the provisions of this Act is hereby repealed, 
modified, or amended accordingly.
SEC. 6. Effectivity Clause. -  This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation.
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Approved,