Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _________ 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc  
PHILRECA Party-List Representative Presley C. De Jesus 
Representative Sittie Shahara “Bai Dimple” I. Mastura 
 Representative Mohamad P. Paglas 
AN ACT 
PROVIDING FOR THE CONDONATION OF THE OVERDUE POWER 
ACCOUNTS BY THE MAGUINDANAO ELECTRIC COOPERATIVE, INC. 
(MAGELCO) FROM THE POWER SECTOR ASSETS & LIABILITIES 
MANAGEMENT CORPORATION (PSALM) INCLUDING THE PRINCIPAL 
AMOUNT, UNPAID INTERESTS, PENALTIES, AND UNREMITTED 
UNIVERSAL CHARGES 
The electric cooperatives in far-flung and distressed areas of Mindanao 
remain committed to their service as the distribution utility energizing their 
constituents. Their efforts must therefore be recognized as despite the political, 
economic, and social situations and conflicts that they face, their resolve to serve 
their constituents remain.  
The bill seeks to provide for the condonation of the Interests, Surcharges, 
Penalties and Universal Charges incurred by the Maguindanao Electric 
Cooperatives, Inc. (MAGELCO) payable to the Power Sector Assets and Liabilities 
Management Corp (PSALM). 
It is incumbent upon us to recognize the efforts of MAGELCO in complying 
with their mandate. MAGELCO faces a potential curtailment of electricity supply. 
December 6, 2022
2:54 pm
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This is all due to their outstanding obligations with the Power Sector Assets and 
Liabilities Management Corporation (PSALM).  
Accumulating since the year 2009 up until present day, MAGELCO’s 
accounts payable for its power bills now amounts to a total of Three Billion 
Eighty-Three Million Six Hundred Eighty-two Thousand Seven Hundred Twenty-
Five Pesos and Ninety-Three Centavos (Php 3,083,682,725.93). As regards to the 
Interest accumulated, the interest due contributes to as much as One Billion 
Four Hundred Fourteen Thousand Four Hundred Forty-Five Pesos and Thirty-
Four Centavos (Php 1,414,445.34). 
 
In the same time span, MAGELCO was able to pay PSALM a total amount 
of Seven Hundred Ninety-Eight Million Sixty-Two Thousand One Hundred 
Twenty-Four Pesos and Sixty-Seven Centavos (Php 798,062,124.67) which was 
applied to the incurred interests, surcharges, and penalties.  
The outstanding obligation restricted MAGELCO to render efficient service 
and provide a regular supply of electricity to the province of  Maguindanao.  
 Henceforth, it is sought that the total amount paid by MAGELCO be 
applied to the principal obligations due and that all the interests,  surcharges, 
penalties on the principal obligation, as well as the universal charges due that 
have accrued until the effectivity of this act shall be condoned.  
In view of the foregoing, the approval of this bill is earnestly sought. 
 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
      
 
REP. PRESLEY C. DE JESUS 
PHILRECA Party-list Representative 
 
 
 
 
 
REP. SITTIE SHAHARA “BAI 
DIMPLE” I. MASTURA 
Representative,  Lone district of 
Maguindanao del Norte 
 
REP. SERGIO C. DAGOOC 
APEC Party-list Representative 
 
 
 
 
 
REP. MOHAMAD P. PAGLAS 
Representative, Lone district of 
Maguindanao del Sur 
 
 


Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _________ 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc  
PHILRECA Party-List Representative Presley C. De Jesus 
Representative Sittie Shahara “Bai Dimple” I. Mastura 
 Representative Mohamad P. Paglas 
AN ACT 
PROVIDING FOR THE CONDONATION OF THE OVERDUE POWER 
ACCOUNTS BY THE MAGUINDANAO ELECTRIC COOPERATIVE, INC. 
(MAGELCO) FROM THE POWER SECTOR ASSETS & LIABILITIES 
MANAGEMENT CORPORATION (PSALM) INCLUDING THE PRINCIPAL 
AMOUNT, UNPAID INTERESTS, PENALTIES, AND UNREMITTED 
UNIVERSAL CHARGES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be referred to as the 
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"Maguindanao Electric Cooperative, Inc. (MAGELCO) Condonation Act of 2022". 
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SECTION 2. Declaration of Policy. – The State shall pursue a 
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comprehensive rural electrification program, including the provision of electric 
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services in sitios and remote households, as a strategy to provide more 
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opportunities for improved quality of life, greater access to basic services, and 
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better infrastructure for rural development. To further accelerate access to 
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electricity services by the country’s unelectrified communities and strengthen 
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and integrate efforts on rural electrification, the State shall provide subsidies 
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and grants to the distribution utilities, particularly the electric cooperatives, 
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pursuing sitio electrification projects in their coverage area.  
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SECTION 3. Condonation of Principal Obligation. – The accumulated 
1 
principal obligation payable to the Power Sector Assets and Liabilities 
2 
Management Corporation (PSALM) from the year 2009 until the effectivity of this 
3 
Act, may be hereby condoned by PSALM or restructured within a period not 
4 
exceeding fifteen (15) years. 
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SECTION 4. Condonation of Interests, Surcharges, Penalties and 
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Universal Charges. – All interests, including surcharges, penalties on the 
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principal obligation, as well as the universal charges incurred by the MAGELCO 
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payable to the Power Sector Assets and Liabilities Management Corp (PSALM) 
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beginning from the year 2009 until the effectivity of this Act, in whatever 
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accumulated amount or sum of interest and surcharges as there may be are 
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hereby condoned, thereby perpetually relieving MAGELCO from payment thereof 
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of all interests, surcharges, penalties and universal charges that may have been 
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accumulated. 
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The amount paid in the sum of Seven Hundred Ninety-Eight Million Sixty-
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Two Thousand One Hundred Twenty-Four Pesos and Sixty-Seven Centavos (Php 
16 
798,062,124.67) which was applied in payment of interests, surcharges, and 
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penalties, shall be applied to, and deducted from the principal obligation instead. 
18 
SECTION 4.  Repealing Clause. –  All laws, decrees, executive orders, 
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proclamations, rules and regulations, and issuances, or parts thereof which are 
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inconsistent with the provisions of this Act are hereby amended or modified 
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accordingly. 
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SECTION 5.  Separability Clause. – If any provision of this Act is declared 
23 
invalid or unconstitutional, the remaining provisions not affected thereby shall 
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remain in force and effect. 
25 
SECTION 6.  Effectivity Clause. –  This Act shall take effect fifteen (15) 
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days after its complete publication in the Official Gazette or a newspaper of 
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general circulation. 
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Approved.
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