Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

FIFTEENTH CONGRESS

Second Regular Session
House sito. OL 04

INTRODUCED BY REPRESENTATIVE PEDRO P. ROMUALDO

EXPLANATORY NOTE

The passage of Republic Act No. 9136 otherwise known as “the Electric Power Industry
Reform Act, as amended” was seen as a bold step towards restructuring the “Electric Power
Industry” and it was the intention of the framers then to open up the industry to attract more
players.

The transfer of the assets and operations from the National Power Corporation to the
various corporate entities created under the EPIRA is part of the privatization efforts to ensure
there would be adequate reliable and cost-effective power supply that will meet the growing
power demand of industries, household users and electric cooperatives.

With the problems besetting in Mindanao wherein the load capacity and supply of
existing plants are not sufficient to provide the demand requirements of consumers and power
users, and aggravated by the neglect in the rehabilitation of old plants or maximizing its
serviceable life, and no new investments or participants in the power industry. It is high time
we revisit the EPIRA and the National Power Corporation Charter.

This proposal may seem at first glance a turnaround of the clock but this is a innovative
idea which might end our woes if we give ourselves a chance to start all over and with due
respect to the validity of the existing contracts and the approved franchises of existing
corporations created under the EPIRA.

We hope future generations will see the significance of this proposal to ensure that
there will be a “Power Industry Sector” in the country that will thrive, allow competition to
grow, and meet the demand requirements of its users at reasonable rates.

May this legislative proposal merit your kind and favorable supp&rt.

. ROMUALDO
Representative
Lone District, Camiguin


BUD

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

FIFTEENTH CONGRESS
Second Regular Session

House Bill No. 6104

INTRODUCED BY REPRESENTATIVE PEDRO P. ROMUALDO

AN ACT
REPEALING REPUBLIC ACT NO. 9136, AS AMENDED OTHERWISE
KNOWN AS “THE ELECTRIC POWER INDUSTRY REFORM ACT, AS AMENDED”
AND FOR OTHER PURPOSES

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

SECTION 1. Republic Act No. 9136, otherwise known as “the Electric
Power Industry Reform Act, as amended”, is hereby repealed in its entirety.

SEC. 2. Any law to the contrary notwithstanding, all existing contracts
entered into under Republic Act 9136, as amended, shall continue to be in
force and in effect until such time as the said original contracts shall have
expired. When the respective corporate lives of the National Transmission
Company (Transco) and/or its franchisee, the Power Sector Assets Liabilities
Management Corporation (PSALM) and the Wholesale Electricity Spot Market
(WESM) shall have expired, all their assets and liabilities are hereby
transferred to the National Power Corporation (NPC): Provided, That nothing
in this Act shall affect the assets sold by the NPC pursuant to the provisions of
Republic Act No. 9136, as amended: Provided, further, That NPC shall, by
virtue of this Act, be subrogated to all the rights and assume all the liabilities
of the PSALM, WESM and Transco, whose functions and powers have been
transferred to NPC, and all their respective funds, records, property, assets,
equipment, and such personnel as necessary, including unexpended
appropriations and/or allocations. All contracts and liabilities of said offices,
agencies, and government units are hereby transferred to and assumed by
NPC and shall be acted upon in accordance with the Auditing Code and other
pertinent laws, rules, and regulations: Provided, moreover, That the officers
and employees of said offices, agencies, and government units shall continue
in a holdover capacity until such time as the new officers and employees of
NPC shall have been duly appointed pursuant to the provisions of this Act:
Provided, finally, That employees separated from the service as a result of this


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reorganization shall, within six (6) months from their separation from the
service, receive the retirement benefits to which they may be entitled under
existing laws, rules, and regulations.

SEC. 3. Energy Regulatory Commission. - Nothing in this Act shall be
construed as to abolish and/or reorganize the Energy Regulatory Commission.

SEC. 4. Tax Treatment. ~ The tax exemptions of the NPC as repealed by
Republic Act No. 9337, as amended, otherwise known as the Expanded Value
Added Tax Law, as amended, are hereby restored.

SEC. 5. Implementing Rules & Regulations. - Within sixty (60) days from
the effectivity of this Act, the Department of Energy, in consultation with the
affected sectors, shall formulate the rules & regulations for the effective
implementation of this Act.

SEC. 6. Appropriations. - Such sums as may be necessary for the
implementation of this Act shall be taken from the current fiscal year
appropriations of NPC, the special fund created under Section 8 of
Presidential Decree No. 910, and such amounts as the President of the
Philippines may allocate from other resources in accordance with law:
Provided, That the total amount shall not exceed Three hundred billion pesos
(P 300,000,000,000). Thereafter, the amount needed for the operation and
maintenance of NPC shall be included in the annual General Appropriations
Act.

SEC. 7. Separability Clause. - The provisions of this Act are hereby
declared to be separable, and in the event any one or more of such provisions
are held unconstitutional, they shall not affect the validity of other provisions.

SEC. 8. Repealing Clause. - Republic Act No. 9136, as amended, is hereby
expressly repealed. All other laws, ordinances, rules, regulations, and other
issuances or parts thereof, which are inconsistent with this Act, are hereby
repealed or modified accordingly.

SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days from its
complete publication in a newspaper of general circulation or the Official

Gazette, whichever comes earlier.

Approved,