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SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SEN A.T..E..~ 
S.B. No. 1 ~ '{ 0 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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AUG 28 P2 :23 
The number of Filipinos below poverty line continues to bloat each year, which ~ 
makes the revision and strict. implementation of government policies on social 
protection, critical, to address poverty in the next few years. 
The problem on poverty has been attributed to different reasons, and one of 
those is the cost of basic human needs, which never fails to burden the Filipino 
consumers every year. 
Electricity is an indispensable part of our everyday life. According to the study 
conducted by International Energy Consultants, and reported out by Meralco and the 
Philippine Chamber of Commerce (peel), our country has the most expensive 
electricity in the whole of Asia. It was further revealed that with average retail rate of 
electricity of 18.1 US cents per kilowatt/hour in the Philippines, it has eased out Japan 
at the top of having the most expensive electricity. The study also found that household 
consumers in the Philippines pay highest at an average of P10 per kilowatt/hour, 
shouldering the biggest burden of high electric rates. The high cost of electriCity hi the 
Philippines was traced by the group to the fact that all costs -
from producing power to 
distribution and taxes -
are passed on to consumers. 
It is noteworthy that under our law, systems loss obtained from illegal use/theft or 
failure in the administration or distribution of electricity, is passed on to consumers, 
which obviously is due to inefficiency of electric providers, hence, must be borne by 
them. 
With this, it becomes necessary to reconsider Republic Act No. 7832, otherwise 
known as "Anti-Electricity and Electric Transmission lines/materials Pilfirage Act of 
1994," which bears the provision on the recovery of system losses by electric providers. 
Approval of this measure is earnestly sought 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 1376 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
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AUG 28 P 2 :23 
AMENDING REPUBLIC ACT NO. 7832, OTHERWISE KNOWN AS "ANTI-
ELECTRICITY AND ELECTRIC TRANSMISSION L1NESIMATERIALS, PILFERAGE 
ACT OF 1994", AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of the Representatives of the Philippines in 
Congress Assembled: 
SECTION 1. - Sections 10 and 11 of RA 7832 are hereby repealed, thereby 
totally removing the recoverable rate of system losses allowed to private electric utilities 
and rural cooperatives. The subsequent Sections shall then be numbered accordingly. 
SEC. 2. A new paragraph shall be inserted after paragraph b of Section 4 to 
read as follows: 
"FOR THE PURPOSE OF THIS ARTICLE, SUBSTANTIAL DECREASE 
IN THE MONTHLY ELECTRIC CONSUMPTION OF A SPECIFIC 
HOUSEHOLD SHALL NOT CONSTITUTE A PRIMA FACIE EVIDENCE 
OF ILLEGAL USE OF ELECTRiciTY AND SHALL NOT WARRANT THE 
IMMEDIATE DISCONNECTION OF THEIR ELECTRIC UTILITY. 
"HOWEVER, IT SHALL BE SUBJECT TO AN INVESTIGATION, 
WHEREBY THE HOUSEHOLD OWNERS SHALL BE GIVEN A NOTICE 
AND AN OPPORTUNITY TO BE HEARD AND CONTROVERT THE 
SUSPECTED VIOLATION." 
SEC. 3. Section 5 is hereby amended to read as follows: 
"Incentives. - An incentive scheme by way of a monetary reward in [the 
minimum amount of Five thousand pesos (P5,000)] AN AMOUNT NOT 
LESS THAN EIGHT THOUSAND PESOS (PB,OOO) shall be given to any 
person who shall report to the NPC or police authorities any act which 
may constitute a violation of Section 3 hereof. The Department of Energy 
(DOE), in consultation with the [NPC] ERC AND TRANSCO, shall issue 
the necessary guidelines for the proper implementation of this incentive 
scheme within thirty (30) days from the effectivity of this Act." 
SEC. 4. Implementing Rules and Regulations. The Department of Energy, 
Energy Regulatory Board and the TRANCO, shall jointly formulate the necessary 


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amendment to the existing Rules and Regulations implementing RA 7832, within 15 
days from the effectivity of this Act. 
SEC. 5. 
Repealing Clause. - All laws or regulations inconsistent with the 
provisions of this Act are hereby amended or repealed accordingly. 
SEC. 6. Effectivity Clause. - This Act shall take effect after the fifteen (15) days 
following its publication in at least two (2) newspaper of general circulation. 
Approved,