SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
4G4 
S.No. __ _ 
IntToduced by Senator Ralph O. Recto" 
Explanatory Note 
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'13 
JUL -4 A1a ~7 
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Today, the filipino people is bracing for the impact of what is probably one of the most 
massive surges in the cost of public utilities in recent memory. The public helplessly watch by as 
a succession of increases in the price of goods and services relentlessly devour what is left of 
their purchasing power. 
It is now more expensive to travel by public transportation as fare rates are up in buses, 
taxis and jeepneys. The Metro Rail Transit (MRT) is also set to increase fares. Plying our toll 
roads had just become almost unaffordable, while pump prices continue to hit the ceiling. Our 
phone, water and electric bills also steadily increase. 
All of these unfold almost at the same time, as the Filipino consumer now turns to the 
government for relief Unfortunately, this upsurge in the cost of basic necessities had been 
approved by government regnlatory bodies despite heavy opposition from the public. 
This fact tells us that the opinion of the public, as consumers and end-users of products 
and services, do not weigh heavily on public policy when the opposite shOUld be true. 
No less than the Philippine Constitution mandates that public participation, in the interest 
of transparency and effective governance, shall be promoted at all levels of social,-political, and 
economic decision-making. 
Furthermore, it is the duty of the State to provide for mechanisms in which the concerned 
sectors can actively participate, in particular, in the regnlatory affairs of ~overnment. 
Unfortunately, up to this day, a number of charters creating various government 
regnlatory bodies - especially those concerned with determining rates of utilities, public 
transport, etc. - do not contain any provision of increasing public participation in their decision-
making process. 
As a result, numerous policy decisions in the past have been approved either without 
prior consultation from stakeholders or without full disclosure of its details in public forums, 
thereby compromising the ideals of participative policy-making and transparency. 
I 
Thi~ bill seeks to address all that. 
Specifically, this measure aims to provide for the institutionalization of the participatory 
mechanisms for concerned stakeholders by including at least one (I) representative coming from 
consumer groups belonging to the sector being regnlated by the government regulatory body 
concerned, amending the charters creating the following regnlatory bodies: 
I. Land Transportation and Franchising Regnlatory Board; 
2. Toll Regnlatory Board; 
3. Energy Regnlatory Commission; 


4. Manila Waterworks and Sewerage System; 
5. Local Water Utilities Administration; and 
6. National Telecommunications Commission. 
It calls for the creation of the position of Consumer Group Representative, who will sit at 
ill! the Governing Boards of these regulatory bodies. 
Once this bill is enacted into law, the public as a consumer would be well-represented in 
the Governing Boards of these regulatory bodies when they formulate public policy, particularly 
with regards to the approval of rate increases in the sector they regulate. 
The bill also aims to prevent malicious activities and grave abuse of discretion committed 
by those who sit on the affected regulatory bodies because they will no longer be left unchecked 
as representatives of sectors concerned will have direct participation over decision-making 
affairs at the top level. 
. 
In view of the foregoing, the passage of this bill is earnestly sought. 
mjma 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PIDLIPPINES 
) 
First Regular Session 
) 
'13 
JUL -4 
A10 :27 
SENATE 
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ImcmV 
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______________ 
S._N_O_. __ 
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Introduced by Senator Ralph G, Recto 
AN ACT 
PROTECTING CONSUMERS FROM UNREASONABLE FEE INCREASES BY 
PROVIDIN(; FOR A CONSUMER GROUP REPRESENTATION IN THE GOVERNING 
BOARDS CtF GOVERNMENT REGULATORY BODIES, AMENDING FOR THE 
PURPOSE THEIR RESPECTIVE CHARTERS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House' of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1; 
Title. 
This Act shall be known as "Consumer Group Representation in 
2 
Regulatory Bodies Act of 20 13." 
3 
SEC. 2. Declaration of Policy. Pursuant to the constitutional mandate that the right of 
4 
the people and their organizations to effective and reasonable participation at all levels of social, 
5 
political, and economic decision-making shall not be abridged, and the State shall, by law, 
6 
facilitate the establishment of adequate consultation mechanisms, the State shall: 
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a.) prevent the concentration of power and information in a few persons/government 
8 
organizations; 
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b.) adopt and implement a policy of full public disclosure of all its transactions involving 
10 
public interest thereby promoting transparency and accountability; and 
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c.) ensure the protection and advancement of consumer welfare by mandating the 
12 
inclusion of consumer group representatives in the Governing Boards of government 
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regulatory bodies. 
14 
SEC. 3. Consumer Group. - For purposes of this Act, a consumer group shall refer to a 
15 
representative organization, registered under the Securities and Exchange Commission (SEC), 
16 
which has been established and organized to cater to a national constituency, and whose mandate 
17 
includes the protection of the interests and rights of consumers in a specific sector that is being 
18 
regulated by a government regulatory body. 
19 
SEC. 4. 
Coverage. The Governing Boards of the following government regulatory 
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bodies shall include at least one (1) member who shall represent the consumer group belonging 
21 
to the sector being regulated by the government regulatory body concerned: 
22 
a. Land Transportation and Franchising Regulatory Board, created by Executive Order 
23 
No. 292; 
24 
b. Toll Regulatory Board, created by Presidential Decree No. 1112; 
25 
c. Energy Regulatory Commission, created by Republic Act No. 9136; 
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1 
d. Manila Waterworks and Sewerage System, created by Executive Order No. 1036; 
2 
e. 
Local Water Utilities Administration, created by Presidential Decree No. 198 as 
3 
amended; and 
4 
f. National Telecommunications Commission, created by Executive Order No. 546; 
5 
Such member of the respective governing boards of the aforementioned government 
6 
regulatory bodies shall be called the Consumer Group Representative. 
7 
The Consumer Group Representative shall perform the same functions, shall have the 
8 
same voting rights, shall be paid the same salaries, remunerations and emoluments, and enjoy the 
9 
same privileges as those enjoyed by the other members of the Governing Board of the 
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government regulatory authority concerned. 
11 
SEC. 5. Qualifications of Consumer Group Representative. -
No person shall be 
12 
appointed as a Consumer Group Representative unless he is a natural born citizen of the 
13 
Philippines, at least thirty (30) years of age, able to read and write, a bona fide member of the 
14 
Consumer Group which he seeks to represent for at least two (2) years prior to his appointment, 
15 
and has never been convicted of any administrative, civil or criminal offense involving moral 
16 
turpitude. 
17 
The Consumer Group Representative should also have at least five (5) years of known 
18 
advocacy in the consumer sector he represents. 
19 
If, at any time during his appointment, the Consumer Group Representative ceases to be a 
20 
bona fide member of his respective consumer group through expUlsion, resignation, 01' any 
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manner of removal sanctioned by its organizational by-laws, the position of Consumer Group 
22 
Representative shall automatically be declared vacant and shall be filled up accordingly by 
23 
initiating the appointment ptocess as herein provided. 
24 
SEC. 6. Appointing Authority. - The President of the Republic of the Philippines shall 
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appoint the Consumer Group Representative subject to the qualifications as herein provided, and 
26 
to the limita~ions and prohibitions under existing laws and statutes. 
27 
SEC. 7. 
Implementing Rules and Regulations. - The Department of Budget and 
28 
Management (DBM) and the government regulatory agencies as enumerated under Section 4 of 
29 
this Act shall formulate and issue the necessary implementing rules and regulations for the 
30 
effective implementation of this Act within sixty (60) days after the effectivity of this Act. 
31 
SEC. 8. Separability Clause. - If any part or provision of this Act shall be held to be 
32 
unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall 
33 
continue to be in full force and effect. 
34 
SEC. 9. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, or 
35 
parts thereof which are inconsistent with this Act are hereby repealed, amended or modified 
36 
accordingly. 
37 
SEC. 10. EffectiVity. - This Act shall take effect fifteen days (15) days following its 
38 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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