'THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F i ~ s  
t R egai 1 a I Session 
SENATE 
S. No. 
6 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
The couiitiy is reeling froin the impact of high electricity rates. 
The Purchased Power Adjustment (PPA) charges collected by the Manila Electric 
Coiiipany from its coiisuiners have jacked up monthly electric bills by more than fifty percent, 
malting the country's power costs among the highest in the region. 
The Department of Energy likewise reports that of the average 12,500 megawatts of 
electricity produced by the National Power Corporation on an annual basis, only 7,500 
megawatts of electricity is utilized. Consumers however are made to pay for the excess 5,000 
megawatts of electricity which they never use. 
This bill seeks to redistribute to consumers the unutilized electricity they have already 
paid for through a power rebate system. 
The Energy Regulatory Commission shall provide a mechanism wherein residential and 
industrial coiisuiners will be allowed access to unutilized energy without having to pay more. 
This will allow small and mediuni industries longer operating hours without the added expense, 
providing them the opportunity to ilicrease their profits and let their business grow. The growth 
of industries will mean more jobs and income opportunities for Filipinos. 
The bill is expected to boost the country's economy, since it encourages energy 
coiisuinption without added costs. 
The immediate and favorable passage of this bill is earnestly requested. 


*ij4 ,“l$j 3Q pfj 120 
THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
6 
INTRODUCED BY WON. MANUEL B. VILLAR JR. 
AN ACT 
MANDATING THE NATIONAL POWER CORPORATION TO ENSURE THE OPTIMUM 
UTILIZATION OF POWER SUPPLY WHICH THE GOVERNMENT HAS GUARANTEED 
TO PURCHASE FROM INDEPENDENT POWER PRODUCERS (IPPs), PROVIDING A 
POWER REBATE SYSTEM IN FAVOR OF THE CONSUMERS, AND FOR OTHER 
PURPOSES 
Be it enacted by tlie Senate and House of Representatives of the Philippines in Congress 
msem bled: 
Section 1. Short Title. - This Act shall be known as “The Power Rebate Act of 2004.” 
Section 2. Declaration of Policy. - It is hereby declared the policy of the State: 
To protect the public against exorbitant power rates charged by electric utilities, 
distributors, and providers of electric power; 
To promote the optimum utilization of power supply generated by Independent Power 
Producers (IPPs) which the government is mandated to purchase under its existing 
contracts; 
To eiisure that L ~ ~ I S C ~ L ~ ~ U ~ O U S  
and unfair business practices are not tolerated and 
guarantee the observance of the time honored principle that no person shall enrich 
himself at the expense of another; 
To provide a rebate system of unused power supply to ensure that the consumer pays 
only for actual power consumption; 


(e) 
To eiicourage equitable and fair distribution of unused power supply guaranteed to be 
purchased by the government under existing contracts with IPPs; 
To encourage the efficient and productive use of energy; and 
To enliance coiisumer protection and promote the general welfare of the people. 
(f) 
(9) 
Section 3. Rebate of Purchased Power Adjustment Charges. - The Manila Electric Company 
(MERALCO), Electric Power Cooperatives, and Distributors are hereby mandated to give their 
coiisuiiiers a monthly rebate of uiiutilized kilowatts as may be determined by the Energy 
Regulatory Coiiimissioii (ERC). 
Sectjon 4. Rebate System. - The ERC shall formulate a system to determine the amount of rebate 
of uiiutilized kilowatts to which each consumer has already paid for and is entitled to based on 
the coiisuiner’s historical electric consumption. 
Section 5. Audit of Unutilized Powev Generated by IPPs. - It is hereby mandated that the ERC 
shall conduct an annual auditing of IPPs to determine the actual amount of unutilized power 
supply which the government is guaranteed to purchase under existing contracts with tlie end 
view that all generated power will be utilized. 
Section 6. Utilization of Power Supply produced by IPPs. - The National Power Corporation 
shall ensure that the Power Supply produced by IPPs which the government has guaranteed to 
purchase Liiider existing contracts is utilized to the fdlest. It shall adopt a monitoring system to 
implement this provision. 
Section 7. Iinpleiizenting Rules and Regulations. - The Department of Energy shall, in 
consultation with relevant government agencies, IPPs and non-government organizations and 
end-users, promulgate tlie Implementing Rules and Regulations (IRR) of this Act within sixty 
(60) days fi-om the effectivity of this Act. 
Section 8. Oversight Con~mittee. - A Congressional Oversight Committee on Purchased Power 
Charge Rebate is hereby created composed of Five ( 5 )  members from the Senate and Five ( 5 )  
members from the House of Representatives. The members fi-om the Senate shall be appointed 
by the Senate President based on the proportional representation of the parties or coalitions 
therein with at least two (2) Senators representing the minority. The members from the House of 
Representatives shall be appointed by the Speaker also based on proportional representation of 
the parties or coalitions therein with at least two (2) members representing the minority. 


Sectioii 9. Powers of the Congressional Oversight Committee. - The Oversight Committee shall 
have the power to promulgate its own rules, to oversee the implementation of this Act, and to 
review or revise the implementing rules within thirty (30) days from the promulgation of the said 
rules. 
Section 10. Separability Clause. - If any provision of this Act is held to be unconstitutional or 
iiivalid, the other park or provisions not affected thereby shall continue to be in full force and 
effect. 
Section 11. Repealing Clause. - All laws, niles, and regulations inconsistent with this Act are 
hereby repealed or modified accordingly. 
Section 12. Effectivity.- This Act shall take effect on the fifteenth day following its publication in 
at least two (2) national newspapers of general circulation. 
Approved,