EIGHTEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES)
Second Regular Session )

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HOUSE OF REPRESENTATIVES

House Bill No.2 487

Introduced by Representative Virgilio S. Lacson

EXPLANATORY NOTE

Utilities (water electricity, communication services) are essential to the
economic and social development of the Philippines and every Filipino. More
than adequate quality utilities are vital to the alleviation of the Filipino people
from poverty. More responsibility of the State to ensure availability of reliable
and inclusive access to such utilities under an effective regulatory framework,
the it is also the Responsibility of the State to ensure that all Filipinos,
especially those with more finite resources, are protected from unreasonable
pricing schemes by limited service providers who control the market.

Recent unexplainable and shocking spikes in electricity costs charged
against the common Filipino have made it apparent that there is a need to
modify the manner we charged and made accountable for their utilities. The
appalling fact that the Filipino consumer is at the mercy of the utility service
providers has never been more felt than in the recent months where they were
charged up to more than four times their average monthly consumption. This
is not even mentioning its untimely coincidence with our economic plight
caused by the Covid-19 pandemic, which has left our unemployment rate at an
all-time high of

‘The measure herein provides security for Filipino consumers from the
apparent erratic pricing of unreliable services of they are essentially forced to
subscribe to, given the current limited players in the industry. This measure
also balances the position of the consumer against burdensome utility
contracts holding them liable for the whole period subscribed, despite the

unsatisfactory service and unreasonable pricing.
oo
VIRGILIOf. LACSON

Manila Teachers, Party List


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. LOY

Introduced by Representative VIRGILIO S. LACSON

AN ACT
MANDATING WATER, ELECTRICITY, COMMUNICATIONS, AND OTHER
BASIC UTILITY SERVICE PROVIDERS TO CREATE AND OFFER YEARLY
MOVING AVERAGE RATES FOR CONSUMPTION;

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

Section 1. Short Title. - This Act shall be known as the "Annual Billing Act of 2020”.

Section 2. Declaration of Policy. - The State recognizes the right of every Filipino to
basic utilities such as water, electricity, and information and communications via
the internet and cellular connectivity. In so doing the State recognizes its role in the
delivery of efficient and convenient services and utilities, necessary for the
continuous and prosperous life of every Filipino. .

Section 3. Yearly Average Contract. - All persons, whether natural or juridical,
publicly engaged in the service of delivering basic utilities, including electricity,
water, and communications, herein referred to as “utility service providers” shall offer
yearly contracts apparently stating the total service price for such one (1) year period
which shall be based on a moving average of the customer's or client’s consumption.
The customer or client shall have the option to amortize the total amount due thereon
for a period of at least twelve (12) months or pay the whole amount after delivery of
the service and upon the expiry of the period of service appearing on the contract.

Section 4. Prohibition against charges on down-time. -It shall be unlawful for utility
service providers to charge full contract price where they unreasonably failed to
deliver such service, and without fault of the customer or client. In such case, the
utility service providers shall proportionally deduct from the total amount chargeable
to the customer or client the amount corresponding to the period unserved. Provided
that periods of erratic or continuously unreliable service shall be considered failure
to deliver the contracted service.

Section 5. Prohibition against unreasonable lock-in period and other like schemes. -
It shall be unlawful for utility service providers to charge customers or clients the

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full contract price or to charge against or appropriate any deposit made by the latter,
where the customer or client pre-terminated the contract due to failure of the utility
service provider to deliver the contracted services as contemplated herein or for some
other reasonable cause therefor.

Section 6 Penal provision. - Any covered person failing to comply with Section 3
hereof shall suffer the penalty of fine no less than five hundred thousand pesos
(P500,000.00) but not more than ten million pesos (P10,000,000.00), at the
discretion of the judge.

Section 7. Implementing Rules. - Within sixty (30) days from the effectivity of this
Act, all concerned government agencies and relevant stakeholders shall issue the
appropriate implementing rules and regulations of this Act.

Section 8. Separability Clause. - If any provision or part of this Act is declared invalid
or unconstitutional, the remaining parts or provisions not affected shall remain in
full force and effect.

Section 9. Repealing Clause. - All laws, decrees, orders, rules and regulations and
other issuances or parts thereof which are inconsistent with the provisions of this
Act are hereby repealed or amended accordingly.

Section 10. Effectivity. - This Act shall take effect immediately days after its
publication in the Official Gazette or in any newspaper of general circulation.

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