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 Presley C. De Jesus 
___________________________________________________________________________ 
EXPLANATORY NOTE 
Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 
2001 is considered to be one of most important pro-market reforms in the 
Philippines. Its goal was to restructure the electric power industry to achieve 
reliable and competitively priced electric service for future generations of 
Filipinos.  
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Eliminate monopolies in the electric power industry, promote competition in 
the market, and tighten the regulations to ensure services will be cost-effective 
and efficient. 0RUHWKDQ\HDUVDIWHU(3,5$·VHQDFWPHQWWKHUHLVVWLOODORQJ
way to go before its intent is fully realized and experienced by consumers. 
In principle, EPIRA prohibits any anti-competitive behavior and other unfair 
trade practices in the industry as laid down by Section 45 of the law. However, 
the clause remains weak in practice as cross-ownership is only prohibited 
between the transmission company and any company in the other two 
sectors. Currently, large private distributions are able to enter sweetheart 
deals with its affiliated power generators which give them control over pricing 
and market behavior, to the detriment of consumers. As long as this practice 
remain, truly competitive electricity rates will continue to elude us.  
With this in mind, this bill is proposed to amend the Cross-Ownership clause 
by tightening the restrictions for cross-ownership and setting limitations on 
the allowed percentage of supply that distribution utilities may source from 
their affiliated firms engaged in power generation. The measure seeks to 
inhibit the undue advantage gained by large distribution utilities and their 
August 9, 2022
5:45 pm
3430


power producers over other players and finally deliver just and fair pricing to 
electric consumers. 
In view of the foregoing, the passage of this bill is earnestly and sincerely 
sought. 
 
 
 
 
 
 
 
REP. SERGIO C. DAGOOC 
 APEC Party-List 
 
 
 
 
REP. PRESLEY C. DE JESUS 
PHILRECA Party-List 
 
 
 
 
 
 
 


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 Presley C. De Jesus 
___________________________________________________________________________ 
AN ACT 
AMENDING SECTION 45 OF REPUBLIC ACT NO. 9316, OTHERWISE 
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 45 of the EPIRA is hereby amended to read as 
1 
follows: 
2 
 ´6HFWLRQ 45. Cross Ownership, Market Power Abuse and Anti-
3 
Competitive Behavior. ² 
4 
x x x 
5 
No generation company, distribution utility, or its respective subsidiary 
6 
or affiliate or stockholder or official of a generation company or 
7 
distribution utility, and any of their relatives within the sixth civil 
8 
degree of consanguinity or affinity, or other entity engaged in 
9 
generating and supplying electricity specified by ERC [within the fourth 
10 
civil degree of consanguinity or affinity], shall be allowed to hold any 
11 
interest, directly or indirectly, in TRANSCO or its concessionaire. 
12 
Likewise, the TRANSCO, or its concessionaire or any of its stockholders 
13 
or officials or any of their relatives within the [fourth] sixth civil degree 
14 
of consanguinity or affinity, shall not hold any interest, whether directly 
15 
or indirectly, in any generation company or distribution utility. Except 
16 
for ex officio government-appointed representatives, no person who is 
17 
an officer or director of the TRANSCO or its concessionaire shall be an 
18 
3430


officer or director of any generation company, distribution utility or 
1 
supplier.  
2 
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3 
person, directly or indirectly, through one or more intermediaries, 
4 
controls, is controlled by, or is under common control with another 
5 
SHUVRQ $V XVHG KHUHLQ ´FRQWUROµ VKDOO PHDQ WKH SRZer to direct or 
6 
cause the direction of the management policies of a person by contract, 
7 
agency or otherwise.  
8 
To promote true market competition and prevent harmful monopoly 
9 
and market power abuse, the ERC shall enforce the following 
10 
safeguards:  
11 
(a) No company or related group can own, operate or control 
12 
more than [thirty percent (30%)] fifteen percent (15%) of the 
13 
installed generating capacity of a grid and/or twenty-five 
14 
percent (25%) of the national installed generating capacity. 
15 
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16 
including its subsidiaries, affiliates, directors or officers or 
17 
any of their relatives by consanguinity or affinity, legitimate 
18 
or common law, within the [fourth] sixth civil degree;  
19 
(b) [Distribution utilities may enter into bilateral power supply 
20 
contracts subject to review by the ERC: Provided, That such 
21 
review shall only be required for distribution utilities whose 
22 
markets have not reached household demand level. For the 
23 
purpose of preventing market power abuse between 
24 
associated firms engaged in generation and distribution, no 
25 
distribution utility shall be allowed to source from bilateral 
26 
power supply contracts more than fifty percent (50%) of its 
27 
total demand from an associated firm engaged in generation 
28 
but such limitation, however, shall not prejudice contracts 
29 
entered into prior to the effectivity of this Act. An associated 
30 
firm with respect to another entity refers to any person which, 
31 
alone or together with any other person, directly or indirectly, 
32 
through one or more intermediaries, controls, is controlled 
33 
by, or is under common control with, such entity; and] For 
34 
the purpose of preventing market power abuse between 
35 
affiliated firms engaged in generation and distribution, 
36 
distribution utilities are only allowed to source from 
37 
bilateral power supply contract of its total demand from 
38 
its affiliated firms engaged in generation as follows: 
39 


'8·V727$/'(0$1' 
ALLOWED 
BILATERAL 
CONTRACT 
50MW and below 
60% 
51-100MW 
50% 
101-250MW 
40% 
251-500MW 
30% 
501 and above 
25% 
 
(c) For the first five (5) years from the establishment of the 
1 
wholesale electricity spot market, no distribution utility shall 
2 
source more than ninety percent (90%) of its total demand 
3 
from bilateral power supply contracts.  
4 
SECTION 2. Implementing Rules and Regulations. ² The Energy 
5 
Regulatory Commission (ERC), in consultation with concerned government 
6 
agencies and stakeholders, shall promulgate the Implementing Rules and 
7 
Regulations necessary to carry out and implement the provisions of this Act 
8 
within sixty days (60) from the effectivity of this Act. 
9 
SECTION 3. Repealing Clause - All laws, presidential decrees, executive 
10 
orders, letters of instruction, administrative rules and regulations or parts 
11 
thereof which are contrary to or inconsistent with the provisions of this Act 
12 
are hereby repealed or modified accordingly. 
13 
SECTION 4. Separability Clause ² Should any part or provision of this 
14 
Act be held unconstitutional or invalid, all other provisions hereof which are 
15 
not affected thereby shall continue to be in full force and effect.  
16 
SECTION 5. Effectivity. ² This Act shall take effect after fifteen (15) days 
17 
following its complete publication in the Official Gazette or in two (2) 
18 
newspapers of general circulation whichever is earlier. 
19 
Approved, 
20