NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
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INDEX
BILLS
S. B. No. 1612
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
AMENDING REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE 
ELECTRIC POWER INDUSTRY REFORM ACT OF 2001
EXPLANATORY NOTE
Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act 
of 2001 (EPIRA) restructured the country’s power sector from a vertically integrated state 
monopoly to a sector that allows competition for subsectors, such as generation and retail 
supply, while also recognizing the importance of regulated subsectors (transmission and 
distribution) in ensuring a stable supply of electricity throughout the Philippines.1
The Philippine Energy Plan 2020-2040 projects that the country’s peak demand2 will 
increase by almost four-folds with 6.6 percent annual increment for the 20-year period, 
from 15,282 megawatts (MW) in 2020 to 54,655 MW in 2040.3
At present, in light of the unprecedented high fuel costs in the international market, 
the Department of Energy has been performing a balancing act in addressing the high 
prices of electricity vis-a-vis the viability of private investments to ensure supply security 
and encourage new investments in the power generation sector. The DOE reports that 
the Philippines has the second highest residential and commercial electricity rates in 
ASEAN, next to Singapore, at PhP11.24/kWh and PhP9.52/kWh, respectively.4
This proposed measure seeks to promote the policy of the State, as declared in 
Section 2 of the EPIRA, to ensure the quality, reliability, security, and affordability of the 
supply of electric power, and to enhance the inflow of private capital and broaden the 
ownership base of the power generation sector.
1 
Philippine Institute for Development Studies. Brucal, A. and Ancheta J. Assessment of the Philippine 
Electric Power Industry Reform Act. Published in December 2018. Available at 
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1821.pdf (Accessed on 4 November 2022).
2 
The highest electricity consumption occurred in a given day or year, which depicts the trend of electricity 
sales forecast with a uniform load factor.
3 
Department of Energy. Philippine Energy Plan 2020-2040. Available at 
https://www.doe.gov.ph/sites/default/files/pdf/pep/PEP_2020-2040_signed_01102022.pdf (Accessed 
on 4 November 2022).
4 
Letter of DOE Sec. Raphael P. M. Lotilla to the Majority Leader dated 23 September 2022 (page 24 of 
58)
1


To achieve these, this proposed measure amends Section 28 of the Law, 
decreasing the holdings cap for persons, natural or juridical, including directors, officers, 
stockholders, and related interests, in a distribution utility and their respective holding 
companies, from 25% to 15% of the voting shares of stock. To further guarantee the 
independence and competence of the Energy Regulatory Commission (ERC), this bill 
puts in place additional qualifications as well as prohibitions for the appointive members 
of the Commission during and after their term. Additional transparency measures, such 
as opening the ERC’s meetings to the public and guaranteeing consumers’ right to access 
relevant information on the energy sector. Finally, in order to put in place a more 
sustainable solution to the problems of the sector, this proposed measure seeks to amend 
Section 47 of EPIRA to authorize the government, through the National Power 
Corporation (NPC), or any other Government -Owned and -Controlled Corporation to 
generate and sell power/electricity from renewable energy sources.
These amendments are envisioned to help open up the power sector to more 
investments and further increase the ownership base of the sector, especially for 
renewable energy, and ultimately, to protect consumers.
The passage of this measure is earnestly sought.
JOEl/VILLANUEVA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
Senate Bill No. 1 R1 2
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THE
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Introduced by SENATOR JOEL VILLANUEVA
AN ACT
AMENDING REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE 
ELECTRIC POWER INDUSTRY REFORM ACT OF 2001
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Decrease in Holdings Cap. - Section 28 of Republic Act No. 9136, 
otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001, is hereby 
amended to read as follows:
“SEC. 28. De-Monopolization and Shareholding Dispersal. - In 
compliance with the constitutional mandate for dispersal of ownership and de- 
monopolization of public utilities, the holdings of persons, natural or juridical, 
including directors, officers, stockholders, and related interests, in a 
distribution utility and their respective holding companies shall not exceed 
[twenty-five percent-(2&%)] FIFTEEN PERCENT (15%) of the voting shares of 
stock unless the utility or the company holding the shares or its controlling 
stockholders are already listed in the Philippine Stock Exchange (PSE): 
Provided, That controlling stockholders of small distribution utilities are hereby 
required to list in the PSE within five (5) years from the enactment of this Act if 
they already own the stocks. New controlling stockholders shall undertake 
such listing within five (5) years from the time they acquire ownership and 
control. A small distribution company is one whose peak demand is equal to 
or less than ten megawatts (10MW).
The ERC shall, within sixty (60) days from the effectivity of this Act, 
promulgate the rules and regulations to implement and effect this provision.
This section shall not apply to electric cooperatives.”
SEC. 2. The Energy Regulatory Commission. - Section 38 of the EPIRA is hereby 
amended to read as follows;
“SEC. 38. Creation of the Energy Regulatory Commission. - There is 
hereby created an independent, quasi-judicial regulatory body to be named 
the Energy Regulatory Commission (ERC). For this purpose, the existing 
Energy Regulatory Board (ERB) created under Executive Order No. 172, as 
amended, is hereby abolished.


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The Commission shall be composed of a [Chairman] CHAIRPERSON 
and four (4) members to be appointed by the President of the Philippines. The 
[Chairman] CHAIRPERSON and the members of the Commission shall be 
natural-born citizens and residents of the Philippines, persons of good moral 
character, at least thirty-five (35) years of age, OF RECOGNIZED PROBITY 
AND INDEPENDENCE, and of [recognized] DISTINGUISHED competence in 
any of the following fields: energy, law, economics, finance, commerce, [or] 
engineering, OR OTHER EXPERIENCE RELEVANT TO THE ENERGY 
SECTOR, with at least [three (3)] TEN (10) years OF ACTIVE [actual] and 
distinguished experience in their respective fields of expertise: Provided, 
THAT NO MEMBER SHALL HAVE BEEN A CANDIDATE FOR ANY 
ELECTIVE NATIONAL OR LOCAL OFFICE IN THE IMMEDIATE 
PRECEDING ELECTIONS, WHETHER REGULAR OR SPECIAL: 
PROVIDED, FURTHER, That out of the four (4) members of the Commission, 
[at least] one (1) shall be a member of the Philippine Bar [with at least-tea-(IO-) 
years of experience-in the active practice of law], ONE (1) SHALL BE AN 
ECONOMIST, ONE (1) SHALL BE AN ENGINEER, and one (1) shall be a 
certified public accountant OR HAVE A BACKGROUND IN FINANCE [with-at 
least ten (10) years of experience in active practice],
XXX
Members of the Commission shall enjoy security of tenure and shall 
not be suspended or removed from office except for just cause as specified 
by law.
MEMBERS OF THE COMMISSION, WITHIN THE DURATION OF 
THEIR TERM, ARE PROHIBITED FROM:
A. 
TAKING UP ANY EMPLOYMENT OR CONSULTANCY 
ARRANGEMENT WITH ANY ELECTRIC POWER INDUSTRY 
PARTICIPANT;
B. 
HOLDING ANY CONNECTION TO AND ANY PECUNIARY 
INTEREST IN AN ELECTRIC POWER INDUSTRY 
PARTICIPANT;
C. 
HOLDING ANY OTHER OFFICE OR EMPLOYMENT; AND
D. 
DIRECTLY OR 
INDIRECTLY PRACTICING ANY
PROFESSION, PARTICIPATING IN ANY BUSINESS, OR BE 
FINANCIALLY INTERESTED IN ANY CONTRACT WITH, OR 
ANY FRANCHISE, OR SPECIAL PRIVILEGES GRANTED BY 
THE GOVERNMENT OR ANY SUBDIVISION, AGENCY, OR 
INSTRUMENTALITY THEREOF, INCLUDING GOVERNMENT 
-OWNED AND -CONTROLLED CORPORATIONS (GOCCs) 
OR THEIR SUBSIDIARIES.
AFTER THE CESSATION OF THEIR SERVICE, MEMBERS OF THE 
COMMISSION ARE PROHIBITED FROM:
A. 
RUNNING FOR OFFICE IN THE ELECTION IMMEDIATELY 
SUCCEEDING THEIR CESSATION FROM OFFICE; AND
B. 
PERSONALLY APPEARING OR PRACTICING AS COUNSEL 
OR AGENT ON ANY MATTER PENDING BEFORE THE 
COMMISSION FOR TWO (2) YEARS FOLLOWING THE 
CESSATION OF THEIR SERVICE.
The Chairman and members of the Commission or any of their 
SPOUSE, PARTNER, AND relative within the fourth civil degree of


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consanguinity or affinity, legitimate or common law, shall be prohibited from 
(1) holding any interest whatsoever, either as invested, stockholder, officer, 
or director in any company or entity engaged in the business of transmitting, 
generating, supplying, or distributing any form of energy and must, 
therefore, divest through sale or legal disposition of any and all interests in 
the energy sector upon assumption of office; (2) TAKING UP ANY 
EMPLOYMENT OR CONSULTANCY ARRANGEMENT WITH AN 
ELECTRIC POWER INDUSTRY PARTICIPANT DURING THE 
INCUMBENCY OF THE MEMBER OF THE COMMISSION TO WHOM 
THE SPOUSE, PARTNER, OR RELATIVE CONCERNED IS RELATED;
AND (3) APPEARING AS COUNSEL OR AGENT ON ANY MATTER 
PENDING BEFORE THE COMMISION OR TRANSACTING BUSINESS 
DIRECTLY OR INDIRECTLY THEREIN DURING THE INCUMBENCY OF 
THE MEMBER OF THE COMMISSION TO WHOM THE SPOUSE, 
PARTNER, AND RELATIVE CONCERNED IS RELATED, AND WITHIN 
TWO (2) YEARS FROM THE CESSATION OF THEIR SERVICE.
The presence of at least three (3) members of the Commission shall 
constitute a quorum and the majority vote of two (2) members in a meeting 
where a quorum is present shall be necessary for the adoption of any rule, 
ruling, order, resolution, decision, or other act of the Commission in the 
exercise of its quasi-judicial functions: Provided, That in fixing rates and 
tariffs, an affirmative vote of three (3) members shall be required.
ALL MEETINGS OF THE COMMISSION SHALL BE OPEN TO THE 
PUBLIC: PROVIDED, THAT THE PUBLIC MAY ONLY PARTICIPATE 
DURING PUBLIC HEARINGS: PROVIDED, FURTHER, THAT A LIVE 
WEB STREAMING OR ANY RELATED TECHNOLOGY OF THE OPEN 
MEETING SHALL BE POSTED: PROVIDED, FINALLY, THAT THE 
TRANSCRIPT OF STENOGRAPHIC NOTES AND MINUTES OF THE 
OPEN MEETING SHALL BE MADE AVAILABLE TO THE PUBLIC, 
WHETHER ON THE WEBSITE OR ANY OTHER PLATFORM, WITHIN 
ONE (1) WEEK FROM THE DATE OF THE OPEN MEETING.
THE COMMISSION, UPON A MAJORITY VOTE, MAY DECIDE TO 
MEET IN AN EXECUTIVE SESSION: PROVIDED, THAT BEFORE GOING 
INTO AN EXECUTIVE SESSION, THE COMMISSION MUST CONVENE 
IN AN OPEN MEETING, IDENTIFY THE REASON FOR THE EXECUTIVE 
SESSION WHILE STATING ALL THE SUBJECTS THAT MAY BE 
REVEALED WITHOUT COMPROMISING THE PURPOSE FOR WHICH 
THE EXECUTIVE SESSION WAS CALLED, DECLARE WHETHER THE 
COMMISSION WILL RECONVENE IN AN OPEN MEETING AT THE END 
OF THE EXECUTIVE SESSION, AND TAKE A ROLL CALL VOTE TO 
ENTER INTO EXECUTIVE SESSION.
EXECUTIVE SESSIONS MAY BE CALLED FOR THE FOLLOWING 
REASONS:
A. 
TO DISCUSS THE DISCIPLINE OR DISMISSAL OF OR 
COMPLAINTS OR CHARGES BROUGHT AGAINST A 
PUBLIC OFFICER, EMPLOYEE, OR STAFF OF ERC
B. 
TO DISCUSS TRADE SECRETS, CONFIDENTIAL, 
COMPETITIVELY SENSITIVE, OR OTHER PROPRIETARY 
INFORMATION”
SEC. 3. Enhanced Promotion of Consumer Interests. - Section 41 of the EPIRA 
is hereby amended to read as follows:


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“SEC. 41. Promotion of Consumer Interests. - The ERC shall handle 
consumer complaints and ensure the adequate promotion of consumer 
interests.
A SUPPORT DESK SHALL BE MADE AVAILABLE TO THE PUBLIC 
WHICH WILL SUPPLY ASSISTANCE TO CONSUMERS FOR A BETTER 
UNDERSTANDING OF ALL PROCEEDINGS AND ISSUANCES OF THE 
COMMISSION, AS WELL AS ANY AND ALL MATTERS WHICH AFFECT 
THE ELECTRICITY RATES CHARGED TO CONSUMERS: PROVIDED, 
THAT THE INFORMATION IS NOT CONFIDENTIAL IN NATURE.
EVERY CONSUMER HAS THE RIGHT TO INFORMATION AND 
SHALL, ON REQUEST, BE GIVEN ACCESS TO SUCH INFORMATION OF 
PUBLIC CONCERN AND WITHIN THE CONTROL OF THE COMMISSION: 
PROVIDED, THAT ACCESS TO INFORMATION SHALL NOT BE GRANTED 
IF:
A. 
THE INFORMATION IS CONSIDERED CONFIDENTIAL UNDER 
THE ERC RULES OF PRACTICE AND PROCEDURE;
B. 
THE INFORMATION CONSISTS OF MINUTES OR RECORDS OF 
ADVICE GIVEN, OR OF OPINIONS EXPRESSED DURING 
DECISION-MAKING OR POLICY FORMULATION IN THE 
COURSE OF EXECUTIVE SESSIONS;
C. 
THE INFORMATION REQUESTED CONSISTS OF DRAFTS OR 
ORDERS, RESOLUTIONS, DECISIONS, OR MEMORANDA OF 
THE COMMISSION IN THE EXERCISE OF ITS REGULATORY 
FUNCTION; OR
D. 
THE INFORMATION REQUESTED PERTAINS TO TRADE 
SECRETS, COMPETITIVELY SENSITIVE, OR OTHER 
PROPRIETARY INFORMATION, WHENEVER THE 
REVELATION THEREOF WOULD PREJUDICE THE INTERESTS 
OF A NATURAL OR JURIDICAL PERSON IN TRADE, 
INDUSTRIAL, FINANCIAL, OR COMMERCIAL COMPETITION.
SEC. 4. Generation and Sale of Power/Electricity from Renewable Resources.
Section 47 (j) of the EPIRA is hereby amended to read as follows:
“SEC. 47. NPC Privatization. - Except for the assets of the SPUG, the 
generation assets, real estate, and other disposable assets as well as IPP 
contracts of NPC shall be privatized in accordance with this Act. Within six (6) 
months from the effectivity of this Act, the PSALM Corp shall submit a plan for 
the endorsement by the Joint Congressional Power Commission and the 
approval of the President of the Philippines, on the total privatization of the 
generation assets, real estate, other disposable assets, as well as existing IPP 
contracts of NPC and thereafter, implement the same, in accordance with the 
following guidelines, except as provided for in paragraph (f) herein:
XXX
(j)
generating assets and IPP-contracts of PSALM Corp. and shall-rtot
incur any new-obti§ations to purchase power through bilater-at
contracts with generation companies or other suppliers] THE
GOVERNMENT, THROUGH THE NPC OR ANY OTHER 
GOVERNMENT -OWNED OR -CONTROLLED CORPORATION, 
IS HEREBY AUTHORIZED TO GENERATE AND SELL 
POWER/ELECTRICITY FROM RENEWABLE ENERGY 
SOURCES, AS DEFINED IN REPUBLIC ACT NO. 9513, OR THE


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“RENEWABLE ENERGY ACT OF 2008,” AND TO INCUR NEW 
OBLIGATIONS TO PURCHASE POWER THROUGH BILATERAL 
CONTRACTS WITH GENERATION COMPANIES OR OTHER 
SUPPLIERS.”
SEC. 5. Implementing Rules and Regulations. - The Energy Regulatory 
Commission (ERC) shall, in consultation with the Department of Energy (DOE), other 
relevant government agencies, the electric power industry participants, consumers, and 
other public and private stakeholder, promulgate the Implementing Rules and Regulations 
of the Act within ninety (90) days from its effectivity.
SEC. 6. Separability Clause. - If, for any reason, any part, section, or provision of 
this Act is held invalid or unconstitutional, the remaining provisions not affected shall 
continue to be in full force and effect.
SEC. 7. Repealing Clause. - All laws, decrees, executive orders, proclamations, 
rules and regulations, and other issuances, or parts thereof which are inconsistent with 
the provisions of this Act are hereby repealed, amended, or modified accordingly.
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a national newspaper of general circulation.
Approved,