Republic of the Philippines

HOUSE OF REPRESENTATIVES 50 AUG 20)
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SEVENTEENTH CONGRESS opp
Second Regular Session ‘

House Bill No. 6281

Introduced by Representative Carlos Roman L. Uybarreta
1-CARE Party List

AN ACT ALLOWING FOR THE DEFERMENT OF THE PAYMENT OF
FINANCIAL OBLIGATIONS OF ELECTRIC COOPERATIVES IN AREAS
DEVASTATED BY NATURAL AND MAN-MADE CALAMITIES

Explanatory Note

‘The Philippines is located in what is known as the “Typhoon Belt” with
an average of twenty (20) typhoons striking the country each year. In the last
decade, the Philippines has been consistently ranked in the top five (5) most
disaster-prone countries in the world. In addition to that, it is also constantly
being ravaged by man-made calamities such as rebellion and the likes.

A state of calamity makes us vulnerable to countless of problems for
most of which is becoming financially cash strapped. Filipino families would
prioritize basic needs like food, clothing and shelter. With this, the need to pay
the utility bills will likely be sacrificed.

Unfortunately, electric cooperatives which are registered with the
National Electrification Administration (NEA) are non-stock and non-profit
entities hence they cannot build up funds to respond to natural and man-made
calamities. And after each calamity, there is a need to restore the damaged
distribution lines and repair other infrastructure support of these electric
cooperatives which require inordinate amount of resources.

Electric cooperatives are reliant to their collection of utility payment from
their member-consumers hence any delay in the payment of majority of their
member-consumers will ultimately affect the viability and ability of the electric
cooperatives to pay their outstanding financial obligations. Any delay in the
payment of an electric cooperative’s financial obligation will entail interest
payment. An additional obligation which will eventually be passed-on to the
member-consumers as higher electricity rate. The member-consumers will
therefore suffer a double whammy as they already suffered losses because of
the calamity and will again be caused to suffer because of higher electricity
Tates.

For the above reasons, passage of this bill is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. _ 6281

Introduced by Representative Carlos Roman L. Uybarreta
1-CARE Party List

AN ACT ALLOWING FOR THE DEFERMENT OF THE PAYMENT OF
FINANCIAL OBLIGATIONS OF ELECTRIC COOPERATIVES IN AREAS
RAVAGED BY NATURAL AND MAN-MADE CALAMITIES

Section 1. Short Title. This Act shall be known as the Electric Cooperatives
Moratorium from Payment Act of 2017.

Section 2. Coverage. This Act shall cover all electric cooperatives registered
with the National Electrification Administration and Cooperative Development
Authority in areas that are declared to be in a state of calamity.

Section 3. Limitation. Calamity shall include both natural and man-made
calamities. Natural calamity refers to typhoons, earthquakes, tsunamis, and
other similar events. Man-made calamity refers to incidents like rebellions and
other war-like activities whether rebels vs. government or rebels vs. rebels in
identified areas.

Section 4. Authorized Deferred Payment. Electric cooperatives shall be
allowed a grace period of sixty (60) days from the cessation of a calamity or
until the situation stabilized in areas declared to be in a state of calamity to
pay their financial obligations to their energy suppliers, lenders and other
financing institutions.

Section 5. Implementing Rules and Regulations. The Department of Energy
(DOE), National Electrification Administration (NEA), Department of Finance
(DOF), and Department of Interior and Local Government (DILG) in
consultation with the industry stakeholders shall jointly promulgate and issue
the Implementing Rules and Regulations to carry out the provisions of this Act.
Such rules and regulations shall take effect upon their publication in three (3)
newspapers of general circulation.

Section 6. Repealing Clause. All laws, presidential decrees, letters of
instructions, executive orders, rules and regulations insofar as they are
consistent with this Act, are hereby repealed or amended as the case may be.


Section 7.-Separability Clause. In the event that any provisions of this Act or
any portion thereof is declared unconstitutional by a competent court, the
other provisions shall not be affected thereby and shall remain valid and
enforceable.

Section 8. - Effectivity Clause. - This shall take effect after its complete
publication in at least three (3) newspapers of general circulation.

CARLOS ROMAN L. UYBARRETA

Representative
1 CONSUMERS ALLIANCE FOR RURAL ENERGY PARTY LIST