Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo.__2950

Introduced by Representative MARLYN PRIMICIAS-AGABAS

EXPLANATORY NOTE

The cost of electricity in the Philippines is one of the highest in Asia.
The ASEAN Power Utilities Authorities reported in 2007 that on the average,
the cost of electricity in the Philippines was about US 17.5 cents per kilowatt-
hour, a cost higher by almost three times than that of the cost in Vietnam
(5.38/kwh), Malaysia (7.67/kwh), Thailand (8.50/kwh) and Indonesia
(7.77/kwh). The Department of Energy reported that the Philippines has the
sixth highest industrial power rates in the world and the seventh highest in
residential rates.

Considering that electricity is one of the most indispensable modern
commodities affecting almost every aspect of human life, its prohibitive costs
impact the hardest on low income-earners which comprise majority of our
population. This is the reason why a ten percent discount (10%) on household
electric rates consumption is envisioned by this bill. The discount would
lessen the economic and social impact of high electric costs as well as directly
recompense residents of host provinces from health and environmental
hazards caused by the operations of geothermal, hydroelectric and coal-fired
power plants in many areas around the country.

Hence, the immediate passage of this bill is earnestly sought.

ZW /

N#PRIMICMAS AGABAS
6th District, Pangasinan



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No.__ 2959

Introduced by Representative MARLYN PRIMICIAS-AGABAS|

AN ACT
GRANTING TO RESIDENTS OF THE PROVINCE WHERE A GEOTHERMAL,
HYDROELECTRIC AND/OR COAL-FUELED PLANT IS LOCATED A TEN.
PERCENT (10%) DISCOUNT ON THEIR POWER RATE CONSUMPTION,

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Residents of the province where a geothermal, hydroelectric
and/or coal-fueled power plant is located shall be entitled to a ten percent (10%)
monthly discount on their power rate consumption, provided, that the discount shall
apply only to all energy consumption of the household, excluding for transportation

SECTION 2. Should there be two or more hydroelectric power plants,
geothermal power plants or coal-fueled plants, or a combination of any of them
which are located in the same province but owned and operated by different entities,
the cost of the discount shall be borne by all of the operators proportionately, taking
into consideration the power generation output, cost of generation and the
environmental and health impacts of such operation to the residents, among others.

SECTION 3. The amount of the discount shall be regularly remitted by the
operators of the hydroelectric, geothermal and/or coal-fueled power plants to
distribution utilities who in turn reflect and deduct the same from the residents’
monthly electricity billing statement.

SECTION 2. Rules and Regulations. ~ The Energy Regulatory Commission
shall prescribe the necessary implementing rules and regulations within sixty (60)
days upon the effectivity of this Act.

SECTION 3. Repealing Clause. — All laws, decrees, executive orders,
presidential issuances and other administrative rules and regulations or parts
thereof which are inconsistent with this Act are hereby repealed, amended or
modified accordingly.

SECTION 4. Effectivity. - This Act shall take effect immediately after its
publication in a newspaper of general circulation.

Approved,