Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT INSTITUTIONALIZING INSTALLMENT PAYMENT SCHEMES ON BASIC 
UTILITY BILLS, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Sec. 10, Art. III of the 1987 Constitution states that “No law impairing the obligation of 
contracts shall be passed.” 
However, the Supreme Court En Banc case of The Philippine American Life Insurance 
Company v. The Auditor General1 states that the constitutional guaranty of non-impairment 
of obligations of contract is limited by the exercise of the police power of the State, in the 
interest of public health, safety, morals and general welfare. 
The State must promote the general welfare of the Filipino people in times of calamity, natural 
or man-made including the occurrence of pandemics that affects the normal economic flow 
of the State. 
This bill seeks to provide a moratorium on all electric, water, and telephone bills during the 
entire duration of a state of calamity. This proposed measure also provides for an installment 
scheme on all amounts which fell due during the moratorium period to promote social justice 
and ensure the economic security of the people. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
1 The Philippine American Life Insurance Company v. The Auditor General G.R. No. L-19255, January 18, 1968, 
https://lawphil.net/judjuris/juri1968/jan1968/gr_l-19255_1968.html 
February 20, 2023
4:30 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
______________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT INSTITUTIONALIZING INSTALLMENT PAYMENT SCHEMES ON BASIC 
UTILITY BILLS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. – This Act shall be referred to as the "Three- 
Gives Law". 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of 
the State to promote the general welfare of the Filipino people in times of 
calamity, natural or man-made including the occurrence of pandemics that 
affects the normal economic flow of the State. 
SECTION 3. Coverage. – The law shall cover all residential customers 
of electric, water, internet, cable, and telephone bills, and shall apply when a 
state of calamity is declared by the President of the Republic of the Philippines 
or any authorized Local Government Official having jurisdiction over the area 
under a state of calamity. 
SECTION 4. Moratorium on Residential Utility Bills. – There shall 
be a moratorium in the payment or collection of all residential utility bills 
during the entire duration of a state of calamity. Holders of public utility 
franchises and all service providers are prohibited from exacting payment or 
from disconnecting the service due to non-payment during the entire duration 
of the state of calamity. Provided that nothing in this law shall prevent 
voluntary payment by customers. 
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SECTION 5. Moratorium on Remittance of Collections to 
Government Instrumentalities and Bills due to Generation Companies, 
Transmission Concessionaires. – In the case of electric cooperatives, there 
shall be a moratorium in the payment or collection of all bills due to 
generation companies and transmission concessionaires and remittances of 
collections, such as Universal Charges, to government instrumentalities 
during the entire duration of a state of calamity. 
SECTION 6. Installment Payment for the Deferred Liability. – Any 
amount due and demandable during the moratorium period shall be payable 
in three (3) equal monthly installments, without interest, penalties, or 
surcharges after the lapse of thirty (30) days from the cessation of a state of 
calamity. 
The same payment scheme is provided in the preceding paragraph 
shall be extended to the public utility franchise holders and service providers 
by their suppliers. Provided, however, that any actual voluntary payment 
received during the said period is still required to be immediately or paid 
proportionately to remitted to the concerned entities. 
SECTION 7. Power Supply Agreements under the State of Calamity. 
- When an area is placed under a State of Calamity, the Force Majeure clause
shall be mandatorily enforced on the Power Supply Agreements between 
distribution utilities and their Power suppliers. Provided that contracting parties 
must arrive at a recalibrated agreement, specifically on adjustment of 
minimum energy offtake (MEOT) and contracted capacity. Provided further, 
this section can be waived upon the discretion of the Distribution Utility 
of an area under the State of Calamity. 
SECTION 8. Expenses on Short-Term Loans covered by Electric 
Cooperatives Emergency and Resiliency Fund. – If electric 
cooperatives resort to short-term loan borrowings to settle obligations during 
the duration of the state of calamity, all borrowing costs including interest, 
front-end fee, documentary tax, and other related expenses shall be covered 
by the Electric Cooperatives Emergency and Resiliency Fund (ECERF). 
SECTION 9. Penalty. – Public utility franchise holders and service 
providers found in violation of this law shall be punishable with a fine for not 
more than One Million Pesos (P1,000,000.00) per infraction. 


 
SECTION 10. Implementation. – This law shall be implemented by the 
public utility regulatory agencies concerned, such as the Metropolitan 
Waterworks and Sewerage System, Local Water Utilities Administration 
National Telecommunications Commission, Energy Regulatory Commission, 
and the National Electrification Administration. 
 
SECTION 11. Repealing Clause. – All laws, decrees, executive orders, 
proclamations, rules and regulations, and issuances, or parts thereof which 
are inconsistent with the provisions of this Act are hereby amended or 
modified accordingly. 
 
SECTION 12. Separability Clause. – If any provision of this Act is 
declared invalid or unconstitutional, the remaining provisions not affected 
thereby shall remain in force and effect. 
 
SECTION 13. Effectivity Clause. – This Act shall take effect fifteen 
(15) days after its complete publication in the Official Gazette or a newspaper 
of general circulation. 
 
Approved,