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Republic of the Philippines 
House of Representatives 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUS E BILL No. ________ 
Introduced by: 
REP. PRESLEY C. DE JESUS, PHILRECA Party-List 
REP. SERGIO C. DAGOOC, APEC Party-List 
REP. GODOFREDO N. GUYA, RECOBODA Party-List 
REP. ADRIANO N. EBCAS, Ako Pilipino Party-List 
AN ACT  
MANDATING THE GOVERNMENT TO CONSTRUCT, OPERATE, AND 
MAINTAIN POWER GENERATING ASSETS TO ENSURE GRID STABILITY 
AND SUPPLY RELIABILITY FOR ANCILLARY AND OTHER PURPOSES, 
AMENDING FOR THE PURPOSE SECTION 47 OF REPUBLIC ACT NO. 9136, 
OTHERWISE KNOWN AS THE ELECTRIC POWER INDUSTRY REFORM ACT 
OF 2001 
EXPLANATORY NOTE 
The passage of Republic Act No. 9136 or the Electric Power Reform Act (EPIRA) 
of 2001 liberalized and privatized the power industry. Its main objectives were to 
secure the power supply and to reduce the cost of electricity through competition and 
efficiency. Through EPIRA, the government should have been freed from subsidizing 
capital-intensive power projects. The private sector is expected to be aggressive in 
putting up new power plants.  
Different sectors have strongly manifested the need to review EPIRA 
expressing discontent on its supposed rationale and objectives. It is generally found 
out that EPIRA has even resulted to the opposite of its objectives and instead 
unjustifiably gave way to rising costs of electricity. 
July 2, 2021
4:35 pm
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The reality is that the transition to market operations is not paved well; that 
rising costs are not avoided; and the liberalization of the industry promoted by EPIRA 
pre-supposing competition to lower the costs was not realized. 
 
The policy of the State to promote the economic development of the country  
and ensure availability of electricity at reasonable cost as a catalyst for economic 
growth and progress must be recognized. 
 
Unfortunately, the hope that the private sector would be aggressive to put up 
power plants to provide ancillary support and buffer to the ever-expanding energy 
requirements of the economy did not materialize. The private capitalist needed to 
wait, contract, and accumulate enough power requirement before they even start 
building the power plants. Or in other words, they needed a “bigger problem” before 
they can propose a solution. And by the time the solution is proposed and 
accomplished, the energy requirement has ballooned already.  
 
And with such new energy situation comes burden to consumers because with 
bigger demand and same supply comes increases in power rates. The generation 
companies cannot be faulted on this problem. They simply would not put up plants 
without assurance of enough contracts or distribution utilities who would purchase 
the power they will generate – to the detriment of the consumers.  
 
The only way to solve the problem is for the government to intervene and 
provide the gap. The government needs to provide the necessary generating assets so 
that the consumers would not suffer either from high prices of electricity or no 
electricity at all. 
 
The passage of this bill is earnestly sought. 
 
 
PRESLEY C. DE JESUS 
Representative 
PHILRECA Party-List 
 
SERGIO C. DAGOOC 
Representative 
APEC Party-List 
 
 
 
 
 
GODOFREDO N. GUYA 
Representative 
RECOBODA Party-List 
 
ADRIANO N. EBCAS 
Representative 
Ako Pilipino Party-List 
 


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Republic of the Philippines 
House of Representatives 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUS E BILL No. ________ 
Introduced by: 
REP. PRESLEY C. DE JESUS, PHILRECA Party-List 
REP. SERGIO C. DAGOOC, APEC Party-List 
REP. GODOFREDO N. GUYA, RECOBODA Party-List 
REP. ADRIANO N. EBCAS, Ako Pilipino Party-List 
AN ACT  
MANDATING THE GOVERNMENT TO CONSTRUCT, OPERATE, AND 
MAINTAIN POWER GENERATING ASSETS TO ENSURE GRID STABILITY 
AND SUPPLY RELIABILITY FOR ANCILLARY AND OTHER PURPOSES, 
AMENDING FOR THE PURPOSE SECTION 47 OF REPUBLIC ACT NO. 9136, 
OTHERWISE KNOWN AS THE ELECTRIC POWER INDUSTRY REFORM ACT 
OF 2001 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Participation of Government in Power Generation. The 
Government is hereby allowed to participate in power generation to help provide 
stability of the grid and in securing reserve capacity for the country. 
Provided, that the generated capacity of these government power plants will be 
used primarily as ancillary services. 
Provided further, that the cost of construction or capital investment of all 
government-owned power plants shall not form part as component of the generation 
cost or capital recovery fee (CRF) of all the power generated in its operation regardless 
of its utilization, except interest of loans or borrowings by government, if any, 
incurred in the construction of said facilities. 
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Provided finally, that only the actual cost of operations and maintenance shall be 
recovered as part of the generation cost of all power generated from the government-
owned power plants. 
SEC. 2. Ownership and Operation of the Agus and Pulangui Hydro Electric 
Plants Complexes. To continue the provision of low power rates in Mindanao, Agus 
and Pulangui hydroelectric power complexes in Lanao Del Sur and Bukidnon 
provinces, respectively, will be permanently exempted from privatization. 
For this purpose, Section 47 of the EPIRA is hereby amended as follows: 
“SEC. 47. NPC Privatization. – Except for THE AGUS AND PULANGUI 
HYDRO ELECTRIC PLANTS COMPLEXES, the generation assets, real estate, 
and other disposable assets as well as IPP contracts of NPC shall be privatized 
in accordance with this Act AND the following guidelines, except as provided 
for in Paragraph (f) herein: 
a)
Xxx…
b)
Xxx…
c)
Xxx…
d)
Xxx…
e)
Xxx…
f)
The Agus and the Pulangui complexes in Mindanao shall be
excluded from among the generation companies that will be
privatized. Their ownership shall be transferred to the PSALM
Corp. and both shall continue to be operated by the NPC. Said
complexes SHALL BE RETAINED TO GENERATE POWER
WHICH WILL SERVE AS BUFFER SUPPLY TO AVERT
POWER CRISES. ELECTRIC COOPERATIVES SHALL BE
PRIORITIZED IN CONTRACTING THESE COMPLEXES’
CAPACITY TO SERVE THE NEED OF THE RESIDENTIAL
CONSUMERS.
(g)
XXX
(h)
XXX
(i)
XXX
SEC. 4. Construction and Maintenance of Additional Power Plants. To ensure 
dependable reserve across the different grids without the energy-consuming public 
suffering the cost of such ancillary services, the government is mandated to construct, 
operate, and maintain its own power plants outside of the market competition for 
power supply. 


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For this purpose, letter “j” of Section 47 of the EPIRA is hereby amended as 
follows: 
(j)
NPC SHALL generate and sell electricity AND SHALL
CONSTRUCT AND MAINTAIN ADDITIONAL CAPACITY
EQUIVALENT TO THE CAPACITY OF THE BIGGEST
POWER PLANT IN EVERY GRID, FOR ANCILLARY
PURPOSES AND TO STABILIZE THE GRID IN ANY GIVEN
TIME THAT A BASE PLANT EXPERIENCE OUTAGE.
SEC. 5. Separability. Any portion or provision of this Act that may be declared 
unconstitutional shall not have the effect of nullifying other portions or provisions 
hereof as long as such remaining portions or provisions can still subsist and be given 
effect in their entirety. 
SEC. 6. Non-impairment Clause. Nothing in this Act shall be construed as to 
diminish, impair or repeal rights recognized, granted, or made available to 
disadvantaged, marginalized, or specific sectors under existing laws. 
SEC. 7. Repealing Clause. Sections and provisions of any laws, rules, and 
regulations inconsistent with the provisions of this Act are hereby repealed, amended, 
or modified accordingly. 
SEC. 18. Effectivity. This Act take effect fifteen (15) days after its publication in 
the Official Gazette or in two (2) newspapers of general circulation in the Philippines. 
Approved,