k’OUK’l’El-’,Nl”iL CONGRESS OF ‘THE) 
REPUULlC OF THE PHI1,lPP‘INES 
First Regular Session 
1 
SENATE 
Introduced by SENATOR JUAN PONCE ENRLLE 
EXPLANATORY N0TE 
Republic Act 9236, otherwise known as the “Electric Power Industry Reform 
Act”, mandates that the obligations of generation companies and energy source or 
resource developers to communities that host energy generating facilities be complied 
with in accordance with the implementing rules and regulations and other applicable 
orders and circulars of the Department of Energy. 
However, this system of administering said fmancial benefits by the Department 
of Energy has proven to be ineffective, causing delays in the availment and release of 
funds to host communities. In order to expedite the remittance ofthe financial benefit that 
independent power producers, generation companies and/or energy resource developers 
are required to set aside and remit to the affected host communities, this proposed 
measure directs the said entities to remit these benefits directly to the communities 
concerned. 
Through this amendment to the EPIRA, it is expected that resettlement areas, 
local government units and regions will receive the remuneration they are entitled to at a 
more opportune time, thus, allowing the immediate implementation of their development 
projects. Local governments shall be strengthened and will promote greater 
decentralization. 
Jn view of the foregoing, the urgent passage of this bill is earnestly sought. 
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FOURTEENTH CONGRESS OEXHE) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by SENATOR JUAN PONCE ENRILE 
AN .4CT 
REQUIRING ALL INDEPENDENT ROWER PROOUCERS, GENERATION 
COMPANIES OK 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 11 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 Regulations No. 1-94. 
SEC. 2. The use of the 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, 
pmv\ipp