THIRTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
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S E N A T E  
Introduced by Senator Luisa ‘‘Loi” P. Ejercito Estrada 
EXPLANATORY NOTE 
Republic Act No. 9136, otherwise known as the Electric Power 
Industry Reform Act of 2001 clearly stated that the obligations of generating 
companies and energy resource developers to communities hosting energy 
generating facilities and/or energy resource developers as defined under 
Chapter 11, Sections 289 to 294 of the Local Government Code and Section 
5(i) of Republic Act No. 7638 and their implementing rules and regulations 
and applicable orders and circulars consistent with this Act shall continue: 
Provided, further, That the obligations mandated under Chapter 11, Section 
291 of Republic Act No. 7160, shall apply to privately-owned corporations or 
entities utilizing the national wealth of the locality. 
Moreover, the aforesaid law so states: To ensure the effective 
implementation of the reduction in cost of electricity in the communities 
where the source of energy is located, the mechanics and procedures 
prescribed in the Department of the Interior and Local Government (DILG)- 
DOE Circulars No. 95-01 and 98-01 dated October 31, 1995 and September 
30, 1998, respectively and other issuances related thereto shall be pursued. 
The aforesaid law, however, intends to mandate the direct remittance 
of the aforesaid benefits to the host communities instead of remitting them 
to the Department of Energy to assure that the said benefits may be utilized 
immediately for their development and for the introduction of improvements. 
Through this measure, we will be able to facilitate the prompt 
remittance of said benefits to the host communities in consonance with the 
intention of all laws previously legislated. 
In view of the foregoing, immediate passage of this bill is earnestly 
sought. 
(2 
CITO ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE 
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Third Regular Session 
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REPUBLIC OF THE PHILIPPINES 
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Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
AN ACT 
REQUIRING ALL INDEPENDENT POWER PRODUCERS, GENERATION 
COMPANIES OR ENERGY RESOURCE DEVELOPERS TO REMIT THE 
AMOUNT THEY ARE REQUIRED TO SET ASIDE AS FINANCIAL 
BENEFIT DIRECTLY TO THE HOST COMMUNITIES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress Assembled: 
SECTION 1. 
All independent power producers, generation 
companies or energy resource developers, whether publicly or privately 
owned, shall remit directly to the local government units or other host 
communities the benefits they are required to set aside as financial 
benefit to host communities pursuant to Section 66 of Republic Act No. 
9136, otherwise known as the “Electric Power Industry Reform Act of 
2001”; as defined in Sections 289 to 294, Chapter I1 of Republic Act No. 
7160, otherwise known as the “Local Government Code of 1991”; the 
benefits defined in Section 5(i) of Republic Act No. 7638, otherwise 
known as the “Department of Energy Act of 1992” and Rule 29 of Energy 
Regulation No. 1-94. 
_/.. . 
SEC. 2. The use of aforesaid amounts remitted by independent 
power producers, generation companies or energy resource developers to 
the host communities concerned shall remain subject to the guidelines 
set by the Department of Energy. 
SEC. 3. All laws, presidential decrees, executive orders, letters of 
instruction, rules and regulations or parts thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 


SEC. 4. This Act shall take effect immediately upon its complete 
publication in at least two newspapers of general circulation. 
Approved,