NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
HOUSE OF REPRESENTATIVES
HOUSE BILL NO. ____
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 than the responsibility of the State to
ensure availability of reliable and inclusive access to such utilities under an effective regulatory
framework, it is also the responsibility of the State to ensure that all Filipinos, especially those
with limited 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 are charged for these
utilities.
This measure aims to provide security for Filipino consumers from the exorbitant pricing of
unreliable services if 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. 
VIRGILIO S. LACSON 
Manila Teachers Party-list
August 1, 2022
12:01 pm
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NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
HOUSE OF REPRESENTATIVES
HOUSE BILL NO. ____
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”. 
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 client's consumption. The 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 client. In such cases, 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 clients the full contract price or to charge against
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or appropriate any deposit made by the latter, where the 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.
,
Approved,