TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
)
)
SENATE
S.B. No. I08fi
•( tl|r i^rciftar/
25 IUG-7 Ft20
KCEIVEtlY;
Introduced by Senator WIN GATCHALIAN
AN ACT REMOVING THE PUBLIC OFFERING REQUIREMENT OF 
GENERATION COMPANIES, AMENDING FOR THE PURPOSE SECTION 43(T) 
OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE ELECTRIC 
POWER INDUSTRY REFORM ACT OF 2001
EXPLANATORY NOTE
Republic Act No. (RA) 9136, otherwise known as the Electric Power Industry Reform 
Act of 2001, provides that it is the declared policy of the State (i) to ensure the quality, 
reliability, security and affordability of the electric power supply; (ii) to enhance the 
inflow of private capital and broaden the ownership base of the power generation 
sector; and (iii) "to ensure transparent and reasonable prices of electricity in a regime 
of free and fair competition and full public accountability." Towards this end, RA 9136 
requires generation companies (GenCos) which are not publicly listed to offer and sell 
to the public not less than 15% of their common shares of stock "to ensure the 
successful restructuring and modernization of the electric power industry."
After almost 20 years since RA 9136 was passed, various reasons show that this 
requirement no longer serves its purpose. First, at present, the electric power industry 
has already been restructured with into four sectors: generation, transmission, 
distribution, and supply. Second, the generation sector is "competitive and open" in 
that it is not a public utility operation thus allowing more players to enter the market. 
Only the generation companies' power supply agreements with distribution utilities are 
subject to the approval of the Energy Regulatory Commission (ERC). As a result of 
these two reasons, there are now more participants in the generation sector.


Third, as a business affected with public interest, there are policies in place to ensure 
the protection of consumers and the public in general, such as the requirement of a 
Certificate of Compliance from the ERC,1 the reliability index which provides for a cap 
in the allowed outages of power plants,2 and the competitive selection process (CSP) 
requirement in the procurement of power supply by distribution utilities.3 These 
require generation companies to modernize their facilities to meet regulatory 
standards and ensure market competitiveness to compete in the CSP.
Fourth, it is expected that the demand for electric power supply will increase in the 
next 20 years. According to the Philippine Energy Plan (PEP) 2023-2050, by 2050, the 
projected total peak demand is 68.5 gigawatts (GW) under business as usual scenario 
(BAU).4 This will require an additional total installed capacity of 122.7 gigawatts (GW) 
from 28.3GW in 2022.5 Moreover, under the country's objective to attain more than 
50% of energy mix attributed to renewable energy by 2050, the grid requires 65 GWh 
from BESS and expands to 466 GWh by 2040 and 1,021 GWh by 2050.6 Towards this 
end, the country needs an environment which attracts more investment in the 
generation sector especially for RE.
Given the foregoing, the initial purpose of the public offering requirement for 
generation companies in the EPIRA no longer serves its purpose and if we are to 
encourage more investments in generation to meet our demand needs in the next 
twenty years, it is crucial to eliminate this additional bapfler to entrj^. As such, the 
immediate passage of this measure is sought.
IN GATCHALIAN
1 Section 6 of RA 9136.
2 ERC Resolution No. 10 Series of 2020. A Resolution Adopting the Interim Reliability Performance Indices and Equivalent Outage 
Days Per Year of Generating Units. Issued on 16 November 2020. Effective on 3 January 2021.
3 Department of Energy (DOE) Department Circular No. DC 2018-02-0003. Adopting and Prescribing the Policy for the Competitive 
Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market. Signed 
on 1 February 2018. Effective on 10 February 2018. (As amended by DOE Department Circular No. DC 2021-09-0030)
4 Page 78. PEP 2023-2050. Available at https://legacy.doe.gov.ph/sites/default/files/pdf/pep/PEP%202023- 
2050%20Vol.%20I.pdf. Accessed on 7 July 2025.
5 Page 79. PEP 2023-2050. https://legacy.doe.gov.ph/sites/default/files/pdf/pep/PEP%202023-2050%20Vol.%20I.pdf. Accessed 
on 7 July 2025.
6Page 79. PEP 2023-2050. https://legacy.doe.gov.ph/sites/default/files/pdf/pep/PEP%202023-2050%20Vol.%20I.pdf. Accessed 
on 7 July 2025.


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
S.B. No.
Senate
\0fUtf #( tl)r ^etrftar/
25 HE-7 PVaO
itfCEIVEi IV:.
Introduced by Senator WIN GATCHALIAN
AN ACT REMOVING THE PUBLIC OFFERING REQUIREMENT OF 
GENERATION COMPANIES, AMENDING FOR THE PURPOSE SECTION 43(T) 
OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE ELECTRIC 
POWER INDUSTRY REFORM ACT OF 2001
Re it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Removal of Public Offering Requirement of Generation Companies. -
2 
Section 43(t) of Republic Act No. 9136, otherwise known as the Electric Power Industry
3 
Reform Act of 2001, is hereby amended to read as follows:
4 
"SEC. 43. Functions of the ERC - The ERC shall promote competition, encourage
5 
market development, ensure customer choice and penalize abuse of market
6 
power in the restructured electricity industry. In appropriate cases, the ERC is
7 
authorized to issue cease and desist order after due notice and hearing. Towards
8 
this end, it shall be responsible for the following key functions in the restructured
9 
industry:
10 
XXX
11 
(t) Perform such other regulatory functions as are appropriate and
12 
necessary in order to ensure the successful restructuring and modernization
13 
of the electric power industry, such as, but not limited to, the rules and
14 
guidelines under which [generation companies,] distribution utilities
15 
which are not publicly listed shall offer and sell to the public a portion not


1 
less than fifteen percent (15%) of their common share of stocks: Provided,
2 
however, That [generation companiesj distribution utilities or their
3 
respective holding companies that are already listed in the PSE are deemed
4 
in compliance. For existing [companies] DISTRIBUTION UTILITIES,
5 
such public offering shall be implemented not later than five (5) years from
6 
the effectivity of this Act. New [companies] DISTRIBUTION
7 
UTILITIES shall implement their respective public offerings not later than
8 
five (5) years from the issuance of their certificate [of compliance] OF
9 
PUBLIC CONVENIENCE AND NECESSITY; and
10 
XX X."
11 
SECTION 2. Implementing Rules and Regulations. - The Energy Regulatory
12 
Commission shall, in consultation with the Department of Energy, other relevant
13 
government agencies, the electric power industry participants, consumers, and other
14 
public and private stakeholders, promulgate the Implementing Rules and Regulations
15 
of the Act within ninety (90) calendar days from its effectivity.
16 
SECTION 3. Separability Clause. - If, for any reason, any provision of this Act is
17 
declared to be unconstitutional or invalid, the other sections or provisions hereof which
18 
are not affected thereby shall continue to be in fuil force or effect.
19 
SECTION 4. Repealing Clause. - All laws, decrees, orders, rules and regulations or
20 
parts thereof which are inconsistent with or contrary to the provisions of this Act are
21 
hereby repealed, amended or modified accordingly.
22 
SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after its complete
23 
publication in the Official Gazette or in a national newspaper of general circulation.
24
Approved,