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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

Second Regular Session

House BillNo.__7052

Introduced by
Philreca Party-List Representative Presley C. De Jesus,
APEC Party-List Representative Sergio C. Dagooc,
Ako Padayon Pilipino Party-List Representative Adriano A. Ebcas,
RECOBODA Party-List Representative Godofredo N. Guya

EXPLANATORY NOTE

The Coronavirus pandemic has adversely affected many nations in the past six (6)
months, resulting to a stoppage in economic activity, thousands of deaths, and the
general public’s unrest and anxiety. With the intention to halt the spread of this
disease, President Rodrigo Roa Duterte declared an enhanced community
quarantine (ECQ) on March 16, 2020 upon the entire Luzon. Thereafter, ECQs
have been implemented in areas outside Luzon. The effectivity of the President’s
order was originally until April 12, 2020. However, due to the unprecedented
efficiency of the virus’ transmission, the ECQ is now extended until May 15, 2020.
In these dark and trying times, nothing is certain.

Despite the implementation of the quarantine, electric cooperatives (ECs) have
continued to provide services and distribute electricity to all residential homes and
remaining commercial establishments. It must be noted that these distribution
utilities are collecting little to none from the end consumers, as compared to
collection when operating in their normal capacity. These limitations and
constraints prompted such entities to appeal to the Energy Regulatory
Commission and Generation Companies to extend or restructure their billing
agreements.

The enactment of Republic Act No. 11469, otherwise known as “The Bayanihan to
Heal as One Act” became effective on March 24, 2020. Under Section 3 of the said
‘Act, the State recognizes the urgency to:
(©) undertake a program for recovery and rehabilitation, including social
amelioration program and provision of safety nets to all affected sectors
(8 ensure that there is sufficient, adequate and readily available funding to
undertake the foregoing;


(g) partner with the private sector and other stakeholders to deliver these
‘measures and programs quickly and efficiently;

(h) promote and protect the collective interests of all Filipinos in these
challenging times.

In this regard, we propose that the National Electrification Administration be
directed to assist ECs with their financial difficulties by extending the deadline of
principal and interest payments, waiving penalties incurred during the
implementation of the ECQ, and restructuring loan agreements favorable to both
parties, among others.

In view of the foregoing, the approval of this bill is earnestly sought.

SLEY C. DE JESUS
PHILRECA Party-List Representative

SERGIO£. DAGOOC
APEC Party-List Representative

Ako Padayon Pilipino Party-List Representative

ae GUYA

GO.
RECOBODA Party-List Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS

Second Regular Session

5D
House Bill No._7952

Introduced by
Philreca Party-List Representative Presley C. De Jesus,
APEC Party-List Representative Sergio C. Dagooc,
Ako Padayon Pilipino Party-List Representative Adriano A. Ebcas,
RECOBODA Party-List Representative Godofredo N. Guya

AN ACT
GRANTING THE NATIONAL ELECTRIFICATION ADMINISTRATION
THE AUTHORITY TO RESTRUCTURE, REPRICE OR REFINANCE
LOANS GRANTED TO ALL ELECTRIC COOPERATIVES DUE TO NON-
COLLECTION OF ELECTRICITY BILLS FROM END CONSUMERS,
FOR THE PERIOD OF THE STATE OF CALAMITY DUE TO THE
CORONAVIRUS DISEASE UNTIL THE RESUMPTION OF NORMAL
OPERATIONS

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

SECTION 1. Short Title — This Act shall be known and cited as “Electric
Cooperative Financial Restructuring Act”.

SECTION 2. Declaration of Policy — The power distribution utilities have been
greatly affected by the COVID-19 pandemic resulting to imminent loses, decrease
in profitability, and payment of fixed costs. Thus, in line with R.A. 11469, otherwise
known as the “Bayanihan to Heal as One Act”, the State recognizes that it is
imperative to support the electric cooperatives in managing their financial
conditions and mitigating economic losses to further provide its services to the
public.

The National Electrification Administration is granted the authority to approve the
restructuring, refinancing, or repricing of loans granted to electric cooperatives in
order to balance the interest of the state, the electric cooperatives, and the general
public as end users. The NEA, in implementing this Act, must maintain the
standards set out under section 58 of R.A. 9136 (The Electric Power Industry


37

39
40

Reform Act of 2001), to strengthen the technical capability and financial viability
of rural electric cooperatives.

SECTION 3. Scope — This Act shall cover all loans granted by the NEA to electric
cooperatives signed and executed prior to the Presidential Proclamation 922, s.
2020.

SECTION 4. Definition of Terms—

(a) “Electric Cooperative” shall refer to a non-stock non-profit entity holding a
license to conduct power distribution.

(b) “National Electrification Administration” shall refer to the government agency
created pursuant to Presidential Decree No. 269, as amended by Republic Act
10531.

(c) “Loan” shall refer to a financial loan granted by NEA before the issuance of
Presidential Proclamation No. 922, s. 2020.

(d) “Restructure” shall refer to the amendment in the provisions of the loan
agreement as to afford the electric cooperatives flexibility to repay its
indebtedness with reasonable safeguards.

(e) “Commission on Audit” shall refer to the government agency created pursuant
to Article IX-D of the 1987 Philippine Constitution.

() “Board of Administrators” shall pertain to the Chairman and four (4)
members as provided under P.D. No. 269.

SECTION 5. Power to amend loan terms agreement— In order to attain the goal
of this Act to grant financial assistance to electric cooperatives, the NEA may
amend, modify, extend, restructure, reprice or refinance loan agreements granted
prior to the Presidential Proclamation No. 922, series of 2020.

SECTION 6. Teleconference, videoconference or other online medium to conduct
meetings ~The NEA and its Board of Administrators may conduct their meetings
or hearings by remote communication such as _videoconferencing,
teleconferencing, or other alternative modes of communication that allow them
reasonable opportunities to participate.

These meetings shall be announced to the public five (5) days before its occurrence
either in the official website of the NEA. The meeting shalll be recorded and posted
in real time in the foregoing platforms.

SECTION 7. Qualified Electric Cooperatives — Electric cooperatives that intend
to avail of the benefits under this Act shall have a satisfactory mark in the following,
qualifications, as determined by the NEA, as of March 16, 2020:

(a) Overall performance of B — AAA in their Financial, Technical and
Institutional Standards and Parameters; and

(b) No past due loans with the NEA prior to the issuance of Presidential
Proclamation No. 922, s. 2020


The NEA may fix additional conditions, qualifications or requirements from the
electric cooperatives availing of the benefits for restructuring and may issue such
policies or parameters in the Implementing Rules and Regulations of this Act.

SECTION 8. Duration of the amended loans — The amended terms of the loan
shall be in effect until the normalization of operations of the electric cooperatives,
as determined by the NEA.

SECTION 9. Notice of resumption of original terms — The effectivity of the
original terms of the loan shall be implemented no later than after one month after
communicating notice thereof by the NEA.

SECTION 10. Implementing Rules and Regulations.— The National
Electrification Administration shall promulgate the rules and regulations for the
effective enforcement of the provisions of this Act.

Section 11. Congressional Oversight. - The Joint Congressional Energy
Commission or the JCEC shall maintain oversight function over the
implementation of this Act. The NEA must submit a quarterly report to the JCEC
on all loans that were amended, modified, extended, restructured, repriced or
refinanced pursuant to this Act.

SECTION 12. Sunset Clause - This Act shall expire after a three-year period from
the date of its effectivity, or sooner upon official declaration of the President of the
Philippines issued by upon recommendation of the Inter-Agency Task Force on
Emerging and Infectious Diseases that the prevailing guidelines of the World
Health Organization and the consensus of the international medical community
conclusively show that a viable vaccine has contained or eradicated COVID-19.

SECTION 13. Separability Clause. — Should any provision of this Act or any part
thereof be declared invalid, the other provisions, insofar as they are separable from
the invalid ones, shall remain in full force and effect.

SECTION 14. Repealing Clause — All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

SECTION 15. Effectivity - This Act shall take effect immediately upon its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved.