Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 8896

Introduced by REP. EVELINA G. ESCUDERO-

EXPLANATORY NOTE

Republic Act 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA)
realized the liberalization and privatization of the power industry to promote greater competition
and efficiency in the sector. It was hoped that the reformed business environment shall result in
better service thru improved delivery of supply and lower power rates for the consumer.

However, in more than a decade after the law’s enactment, higher electricity rates
(estimated as one of the highest in Asia) and power outages, especially in Mindanao, have become
a burden. It is apparent that the EPIRA was not able to provide the promised reform to ensure long
term security of power supply and the benefits of liberalization such as lower prices.

EPIRA was intended to be the solution to the country’s electricity problems. Instead, it has
caused the government to lose control of the power industry. allowing private businesses to raise
power rates with impunity.

Unless the EPIRA is amended, it will be difficult - if at all possible - to maintain control of
the power industry to the government in order to temper the profit-oriented practices in the power
industry.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3896

Introduced by REP. EVELINA G.

ESCUDERO.

AN ACT AMENDING
TION 47 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS
THE ELECTRIC POWER INDUSTRY REFORM ACT

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

SECTION 1. Section 47 of Republic Act No. 9136, otherwise known as the Electric Power
Industry Reform Act of 2001, is hereby amended to read as follows:

“SEC. 47. NPC Privatization. —
(a) XXX
*(b) Xxx

(6) Xxx
~(d) All REMAINING assets of NPC shall be [sold in an open and transparent

manner through public bidding, and the same shall apply to the disposition of IPP
contracts] RETAINED BY THE NATIONAL GOVERNMENT;

“(e) In cases of transfer of possession, control, operation or privatization of multi-
purpose hydro facilities, safeguards shall be prescribed to ensure that the national
government [may] IS ALWAYS EMPOWERED TO direct water usage IN ALL,
CASES IT MAY DEEM APPROPRIATE TO SATISFY ALL WATER [in
cases of shortage to protect potable water, irrigation, and all other] requirements
imbued with public interest;

“(f) The Agus and the Pulangui complexes in Mindanao shall be excluded from
among the generation companies that will be [initially] privatized. [Their ownership
shall be transferred to the PSALM Corp. and both shall continue to be operated by
the NPC. Said complexes may be privatized not earlier than ten (10) years from the
vity of this Act, and except for Agus III, shall not be subject to Build-Operate-
(B-O-T), Build-Rehabilitate-Operate-Transfer_ (B-R-O-T) and other
variations thereof pursuant to Republic Act No. 6957, as amended by Republic Act
No. 7718. The privatization of Agus and Pulangui complexes shall be left to the
discretion of PSALM Corp. in consultation with Congress};



“(g) THE STATE SHALL ENDEAVOR TO DEVELOP THE GEOTHERMAL
RESOURCES OF THE COUNTRY AND BUILD NEW GEOTHERMAL
PLANTS. The steamfield assets and generating plants of each EXISTING
geothermal complex shall not be PRIVATIZED [sold separately. They shall be
combined and each geothermal complex shall be sold as one package through public
bidding]. The geothermal complexes covered by this requirement include, but are
not limited to, Tiwi-Makban, Leyte A and B (Tongonan), Palinpinon, and Mt. Apo:

Xx}

SEC. 2. Repealing Clause. - All laws, decrees, executive orders and rules and regulations
inconsistent with the provisions of this Act are hereby repealed and modified accordingly.

SEC. 3. Separability Clause. — If any provision of this Act is subsequently declared
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and
fect.

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SEC. 4. This Act shall take effect fifteen (15) days after its complete publication in the
Official Gazette or in at least two (2) national newspaper of general circulation, whichever comes
first.

Approved,