Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
EXPLANATORY NOTE 
The Philippines is regularly hit by typhoons all year round. According to 
PAGASA, an average of twenty (20) typhoons visit the country. We are witnesses to 
the extent of devastation and socio-economic dislocation these typhoons and other 
natural calamities can cause our nation. Just a few years ago, typhoon Yolanda 
(Haiyan) left several thousands of our fellow Filipinos homeless and several thousand 
dead. It took a considerable number of months for the whole affected community to 
regain or to start anew from the damages it brought to the people. 
Then again, the country was hit again by several typhoons and struck by 
major earthquakes in several parts of Mindanao; ad recently the eruption and the 
imminent threat of another hazardous eruption of Taal Volcano. These major events 
has negatively impacted the lives and livelihood of our people. 
During a state of calamity, every Filipino family becomes vulnerable to 
countless problems, e.g., water shortage, brownouts, diseases, damage to properties, 
and economic dislocations. For areas severely damaged, each person needs to start 
from scratch to get back a little of what they used to have, aside from the trauma 
brought about by the experience. 
It is therefore understandable for these affected people to prioritize obligations 
and responsibilities one by one. The need to eat and find shelter after a devastating 
typhoon, earthquake, volcanic eruption or other form of calamity becomes the 
primary concern of the affected people. Other responsibilities like financial 
obligations such as loans and bills for electricity, water and telecommunications, 
become secondary or the least of the concerns of the affected people. 
It can also be noted that during calamities, basic utility services like electricity 
and water are disrupted and sometimes severely damaged resulting to weeks or 
months of lack or absence of services by the utility companies or providers. It would 
be disadvantageous, if not unjust to charge or collect fees from the affected people 
for interrupted or poor services by the utility companies or providers. 
The families and people in a calamity area need assistance from government 
and other agencies or social institutions to cope up with the effects brought by the 
calamity, either natural or man- made. 
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The economic dislocation and stagnation, aside from the emotional stress and 
mental anguish cause extreme difficulties on the part of the borrowers from financial 
institutions and other private persons to meet payments falling due during this 
period of calamity. Consequently, these loans and financial obligations are subjected 
to harsh and onerous penalties and surcharges including interests which accrue 
during period of commercial inactivity and when all efforts are focused for relief 
operations, rehabilitation and restoration of facilities, thereby resulting in closure of 
business and/or foreclosures of collaterals. 
 
It is the responsibility and duty of the State to provide relief to the affected 
people and to provide adequate social services to maintain and sustain a quality of 
life even during or after calamities. 
 
By providing financial relief to the affected people during calamities in the 
form of forbearance or moratorium in the collection of fees for utility services, 
payments for loans and credits, and other financial obligations, can provide a 
breathing space for them to recover from the effects of a calamity. 
 
This measure proposes to impose a compulsory moratorium on the accrual 
and collection of interest, penalties and surcharges financial institutions both public 
and private, including natural and juridical persons, within six (6) months from the 
time the areas are declared under a state of calamity by the President of the 
Philippines and/or by the concern local government unit through their Sanggunian. 
 
Likewise, this measure also proposes that a moratorium or forbearance in 
payment of bills for utility services be granted, and a grace period of sixty (60) days 
in the areas declared under a state of calamity. 
 
The present measure has been deliberated and approved on 3rd Reading by 
the House of Representatives in the 17 Congress and was transmitted to the Senate 
of the Philippines but failed to pass in the later chamber due to lack of material time. 
 
It is the prayer of this representation that this measure be approved in the 
shortest possible time because of the urgency of the matter it intends to address. 
 
 
EDWIN L. OLIVAREZ 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
AN ACT PROVIDING FOR FINANCIAL RELIEF TO 
VICTIMS OF CALAMITIES. 
Be it enacted by the Senate and House of representatives of the Philippines Congress 
assembled: 
Section 1. Short Title. - This Act shall be known as the “Financial Relief in 
Times of Calamities Act”. 
Section 2. Coverage. - This Act applies to a person in an area declared under 
a state of calamity by the President of the Philippines or the local government unit 
concerned through its local Sanggunian, and who has outstanding utility charges, 
loan, credit or any financial obligations from public or private utility companies and 
financial institutions. 
All the benefits under this Act shall also apply to distribution utilities such as 
local water districts and electric cooperatives in terms of outstanding balances on 
low obligations to financial or lending institutions. 
Section 3. Definition of Terms. — As used in this Act: 
a) Forbearance refers to the act of refraining from proceeding against a
delinquent debtor and giving further time for repayment of a debt or financial
obligation;
b) Grace Period refers to the period during which payment is allowed to be
received for a certain period of time after the actual due date. During this
period, no late fees are charged and the late payment does not result in default
or cancellation of the loan;
c)
Moratorium refers to the period during which the person or borrower is not
required to pay outstanding or unpaid utility bill, loan, credit accommodation
or financial obligation;
d) Person refers to a natural or juridical person residing or operating my business
in an area declared under a state of calamity by the President of the
Philippines or the local government unit concerned through its local
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Sanggunian; 
 
e) State of Calamity refers to a condition involving mass casualty and/or major 
damages to property, disruption of means of livelihoods, roads and normal 
way of life of people in the affected areas as a result of the occurrence of 
natural or human- induced hazard; 
 
f) Utility refers to water, electricity, gas and telecommunications including 
telephone, internet and cable, as well as other similar services; 
 
g) Utility Service Provider refers to a business organizations, subject to 
government regulation, that provides or distributes an essential commodity or 
service such as water, electricity, internet and cable, as well as other similar 
services; 
 
Section 4. Moratorium Forbearance and Grace Period. - All persons 
covered under this Act shall be granted a moratorium of forbearance and be allowed 
a grace period of sixty (60) days from the cessation of the disaster in areas declared 
under state of calamity, to pay the utility bills which have fallen due during the time 
the area has been declared under state of calamity. 
 
A moratorium shall also be granted on the principal payments, accrual and 
collection of interests, penalties and surcharges on all loans, debts, and credit 
accommodations or financial obligations of any kind from public or private financial 
institutions for a period of (6) months from the time the area was declared under a 
state of calamity by the President of the Philippines or the local government unit 
concerned through its local Sanggunian; 
 
Section 5. Violations and Penalties. - Any violation of this Act shall subject 
the erring utility service provider, distribution utility, financial institution or private 
lender to a fine equivalent to five (5) times the interest, penalties and surcharges 
collected ln violation of the provisions of this Act for the first offense; ten (10) times 
the amounts in interests, penalties and surcharges collected for the second offense 
and suspension of the license to operate for the third and subsequent offense. 
 
Upon final conviction by the appropriate court, the fines imposed under this 
Act shall be automatically applied to the principal loan balance of the borrower. 
 
Section 6. Implementing Rules and Regulations. - Within sixty (60) days 
from the effectivity of this Act, the Department of Energy (DOE) shall, in coordination 
with the Energy Regulatory Commission (ERC), the National Telecommunication 
Commission (NTC), the National Disaster Risk Reduction Management Council 
(NDRRMC) md the Department of Interior and Local Government with the various 
national leagues of local government units, issue and promulgate the implementing 
rules and regulations to carry out the provisions of this Act. 
 
Section 7. Separability Clause. - If my provision of this Act or any portion 
thereof is declared unconstitutional by a competent court, the other provisions shall 
not be affected thereby and shall remain valid and enforceable. 
 
Section 8. Repealing Clause. - All laws. Decrees. Executive orders, rules and 
regulations, or parts thereof which are inconsistent with this Act are hereby repealed, 
amended or modified accordingly. 
 


Section 9. Effectivity. - This Act shall take effect fifteen (15) days its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved.