SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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'14 
JAN 14 P2 :32 
SENATE 
S.No. 2051 
Introduced by S"nator Antonio, "Sonny" F. TrlUanes IV 
EXPLANATORY NOTE 
When President fidel V. Ramos assumed presidency in 1992, he was welcomed by a crippling power 
crisis throughout the country prompting him to seek emergency powers from Congress. Republic Act No. 
7648, otherwise known as the "Electric Power Crisis Act of 1993", granted emergency powers to then 
President Ramos to respond to the alarming shortage of the supply of electricity during that period. 
RA 7648 allowed special constitutional powers to issue licenses to independent power producers (IPP) for 
the construction, repair, rehabilitation, improvement or maintenance of power plants, projects and 
facilities. This effectively fast tracked the usually long and tedious process required to bid out government 
proj ects. Moreover, said law also created an oversight committee in each House of Congress to monitor 
the implementation of the same and the exercise of authority granted under the law. 
However, the authority granted under RA 7648 was ot1ly valid for a period of one (1) year from its 
effectivity. 
Sadly, challenges that beset the power industry have not ceased. Early last year saw the recurrence of 
intermittent power brownouts in Mindanao, and no less than the President admitting that said power 
problem has been neglected for years. 
Moreover, just before 2013 ended, Manila Electric Company (Meralco), the largest power distributor in 
the country, announced its plan to raise electricity rates by Php 4.15 per kilowatt hour, the highest in the 
country's history, when it was forced to buy expensive electricity from the Wholesale Electricity Spot 
Market (WESM) after its major source of power, the Malampaya natural gas platform, went on a 
maintenance shutdown from November 10 to December II. 
Thereafter, at the start of the year, following the High Court's 60-day freeze on the planned power rate 
hike this January, Meralco warned of rotating blackouts in the sununer if the bleak possibility that 
generation companies might altogether refuse to sell electricity to Meralco ensues. Worse, Meralco adds 
that said generation companies may decide to sell oniy such amount of electricity as is commensurate to 
the resulting rate ofP5.6673 per kilowatt-hour. 
It is therefore not smprising that renewed calls on the grant of emergency powers to the President to 
expeditiously address the looming energy crisis have surfaced. 
It is in light of all the foregoing that this measure granting'emergency powers to the President to address 
the looming power crises is being put forward. 
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With the powers granted under this Bill, the President can expedite and fast track the approval, 
establishment and operationalization of power generation projects. With more players and alternative 
sources of power, it is expected that the additional capacity will not only address the growing demand but 
also promote competition and result to lower power rates. 
Out of the abundance of caution, however, this measure expressly prohibits the government from granting 
sovereign guarantee for the payment of obligations incurred by the Independent Power Producers (IPPs). 
Likewise, this measure proscribes the inclusion of onerous "take or pay" contracts or similar provisions 
which appeared to have been abused in the past. 
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Whenever it is necessary for the national welfare and U; the public interest, and pursuant to the policy 
declared under the Bill, the President is likewise authorized to compel IPPs to supply power to 
distribution utilities and power distribution cooperatives to ensure the availability of power to end-users, 
with the power to fix a reasonable rate of return on rate base for the concerned IPPs, not to exceed twelve 
percent (12%) per annum. 
Finally, in order to prevent the imposition of the additional burden unto consumers who are already 
reeling not only from the recent calamities but also from seemingly .endless actnal andlor threatened. 
increases in the cost of gasoline and diese~ liquefied petroleum gas (LPG), water, transport fare as well as 
in the premium contributions imposed by thy Social Security System and PhilHealth, the President shall 
also be empowered to authorize and allow the use of the Special Funds which include the Malampaya 
Fund to finance the maintenance, rehabilitation, and replacement of energy infrastructure in preparation 
for andlor in response to natural and man-made calamities, as well as to finance subsidy for energy 
consumption by end users in case of market faiInre. 
Armed with the extra-ordinary powers granted under this Bill, it is expected that the President would be 
able to address and ultimately resolve the looming power crisis, if not immediately, at least in the short 
and medium term. 
More importantly, the President would also be in a better position to protect consumers and the public-at-
large from the debilitating effects not only of rotating blackouts but also from the unprecedented and 
record-setting increases in the cost of power. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
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~-(r-l-
~T~IO 
~'SONNY" F. TRILLANES IV 
Senator 
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SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S.NO. 
2051 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN A.CT 
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JAN 14 P2 :32 
PRESCRIBING 
URGENT 
MEASURES 
NECESSARY 
AND 
PROPER 
TO 
EFFECTIVELY ADDRESS THE ELECTRIC POWER CRISIS AND FOR OTHER 
RELATED PURPOSES 
Be it enacted by the Senate and House oj Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Electric Power Crisis Act of 
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2014". 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to adopt 
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adequate and effective measures to address electric power crisis which threathens to disrupt the 
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country's economic and social life and which is looming to assume the nature and magnitude of 
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a pUblic crisis if not a calamity, if not properly addressed. 
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SEC. 3. Negotiated Contracts. - Pursuant to. the above declared policy and in the public 
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interest and whenever it is advantageous to the Government and the public, the President may 
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enter into negotiated contracts for the construction, repair, rehabilitation, improvement and/or 
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maintenance of power plants, projects arid facilities, subject to the following· requirements: 
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a) In order to inform competitive contractors, the list of projects to be undertaken under 
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this Act, together with their description, the budgetary estimates involved and other 
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salient features, shall be published in a newspaper of general circulation thirty (30) 
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days after the effectivity of this Act; 
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b) Upon perfection of the contract, the terms and conditions ofthe same, with the name 
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and qualifications of the contractor, shall likewise be published in a newspaper of 
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general circulation two (2) weeks before the signing of the contract; 
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c) The contracts shall be awarded only to contractors with: 
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i) 
ii) 
iii) 
proven competence and experience in similar projects; 
competent key personnel and sufficient and reliable equipment; and 
sound financial capacity; and 
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d) All the awarded projects shall be subject to existing govemment auditing rules and 
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regulations governing negotiated contracts. 
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Provided, That the President shall not grant sovereign guarantee for the payment of 
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obligations incurred by the independent power producers (IPPs); Provided further, That the 
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President shall not enter into negotiated 'contracts which will bring the total' production capacity 
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in excess of the power requirement of the country as projected by the Department of Energy 
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(DOE); Provided finally, that no take-or-pay contracts or similar onerous provisions shall be 
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entered into in the exercise of the powers provided in this Act. 
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SEC. 4. Power To Compel IPPs To Supply Power; Return on Rate Base. - Further 
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pursuant to the above declared policy, the President is hereby authorized, whenever it is 
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necessary for the national welfare and in the public interest, to compel IPPs to supply power to 
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distribution utilities andlor power distribution cooperatives and to fix thl; rate of return of the 
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IPPs to a reasonable percentage of their rate base, as may be determined by the President in 
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consultation with IPPs and other stakeholders; Provided, That said rate of return on rate base 
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shall not exceed twelve percent (12%) per·annum. 
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Any increase in power rates shall take effect only upon approval of the Energy 
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Regulatory Commission (ERC), and only after proper notice, hearing and due proceedings. 
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SEC. 5. Authority Of The President To Tap Available Funds Including Special Funds. 
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- Likewise pursuant to the above declared policy and whenever it is necessary for the national 
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welfare and in the public interest, the Presidends hereby empowered to authorize and allow the 
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use of all available funds, including the savings of the Government from its operations in the 
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current and previous years, as well as Special Funds, including the Special Fund created under 
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Presidential Decree No. 910 otherwise known as. the "Malampaya Fund", to finance the 
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maintenance, rehabilitation, and replacement of energy infrastructure in preparation for and/or in 
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response to natural and man-made calamities, as well as to finance subsidy for energy 
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consumption by end users in case of market failure. 
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SEC. 6. Duration of Grant of Powers. - The authority granted to the President under this 
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Act shall subsist, be valid and effective fGr a period of one (1) year from the effectivity of this 
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Act, unless sooner withdrawn by a resolution of Congress, without prejudice to rights and 
benefits that may have been vested, and culpabilities and liabilities that may have been incurred. 
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SEC. 7. Oversight Committees. - There is hereby created an Oversight Committee in 
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each House of Congress to be composed of five (5) members each, as may be designed by the 
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Senate President and the Speaker of the House of Representatives, to monitor the implementation 
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of this Act and ensure compliance with the provisions hereof and the proper exercise of the 
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authority granted thereunder. 
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The 
Oversight 
Committees 
shall 
submit periodic reports, 
evaluations 
and 
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recommendations to the Senate and the House of Representatives. 
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SEC. 8. Report to Congress. - The Presidellt shall submit a quarterly report to Congress 
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on the implementation of this Act. 
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SEC. 9. Separability Clause. - If for any reason any provision of this Act is declared 
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unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall 
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continue to be in full force and effect. 
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SEC. 10. Repealing Clause. - All laws, decrees, orders, rules and regulations, or portions 
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thereof, inconsistent with this Act are hereby expressly repealed and/or modified accordingly. 
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SEC. 11. Effectivity Clause. - This Act shall take effect on the day following its 
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publication in at least two (2) national newspapers of general circulation in the country or the 
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Official Gazette. 
Approved, 
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