Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS

First Regular 8

ion

BILLS AND INDEX

HOUSE BILL No.

Perera
pare, 17 AUG 2016

IN

— at
BY: ok

REGISTRATION UNIT
RVICE

Introduced by BAYAN MUNA Rep. CARLOS ISAGANI T, ZARATE

AN ACT

TO ADDRESS THE WORSENING STATE OF THE POWER INDUSTRY IN THE
PHILIPPINES, AMENDING FOR THE PURPOSE SECTION 47 OF REPUBLIC
ACT NO, 9136, AND FOR OTHER PURPOSES:

EXPLANATORY

NOTE

This bill seeks to amend the failed policy known as the Electric Power Industry Reform Act
(EPIRA) in light of the perennial power crisis in Mindanao and the long-term vision that the
vital power industry should not be left to the vagaries of private interests to the detriment of
our country’s national development requirements.

As of 2013, the Philippines had the third highest cost of electricity in Asia including even
Australia and New Zealand’.

Residential Generation Cost [Grid Charges [ VAT/GST %

Tariff
Sydne} 40 12.5 193 i0
Tokyo 38 28.7 67 5
Manila 35 19.5 8.2 12
‘Auckland 33 117 119 15
‘Singapore 28 21:2 48 7
Seoul 22 16.4 22 10
Bangkok 17 134 23 7
Hong Kong 16 12.8 3.1 0
Jakarta 14 10.6 1.4 10
| Hanoi 2 78 25 10
Shanghai 12 7.0 2.9 18
Kuala 12 79 1.9 10
Lumpur
Taipei 2 81 26 3
Beijin 10 5.8 23 18

Yet, despite having one of the highest electricity rates, we ironically have one of the lowest
power generation capacities in the same region, with only 0.44 total primary energy supply

*The Lantau Group, “Global Benchmark Study of Residential Electricity Tariffs”, May 2013, paper prepared for
Energy Market Authority, Singapore.



(or tons of oil equivalent per capita). Indonesia has twice, Thailand has four times, Malaysia
has six times, and Singapore has 11 times that amount

The latest available comparative data from the 27th EPIRA Implementation Status Report
show that Mindanao has effective residential electricity rates of P8.79 per kilowatt-hour
(kWh). Luzon has P8.09 per kWh and Visayas has P8.79 per kWh. Except for CARAGA, all
the Mindanao regions have more expensive residential power rates than Hong Kong
SAR, These regions, including Cotabato City, Higan City, SOCSKSARGEN, and the
Zamboanga Peninsula all have higher residential rates than major Asian capitals like Taipei,
Kuala Lumpur, Jakarta, New Delhi, Bangkok, and Shanghai, among others. All in all,
Mindanao is paying an average of P1.82 per kWh more for electricity than the 31 major cities
in Asia and Oceania as surveyed by the Japan External Trade Organization (JETRO).

The premise that Mindanao has been unjustifiably enjoying “cheap” power rates is totally
wrong, True, Mindanao has lower power rates than Luzon and the Visayas. But Mindanao is
actually paying much more than most major cities in Asia, It is a sad fact that residential
consumers in Cagayan de Oro City, the Autonomous Region in Muslim Mindanao (ARMM),
Northem Mindanao, and the Davao and CARAGA regions are paying twice the electricity
rates of residents in Seoul and Beijing.

It will be wrong for government to fully let go to private hands the vital power generation
sector as we are continually experiencing continued yellow and red power alerts particularly
during mid-2016. It will be doubly wrong for government to side with private power firms
who want high prices instead of consumers and investors who want low electricity rates. It
important to note that these generation assets have continually reaped dividends for the
government and the people—and will continue to do so in the long-term

There are still around 1600 MW of power assets remaining in government hands but we are
experiencing continued yellow alerts in the Luzon grid and perennial brown outs in
Mindanao. Among the power assets that the Power Sector Assets and Liabilities Management
Corporation (PSALM) are still trying to sell are the 850 MW Sucat Thermal Power Plant, the
225 MW Bataan Thermal Power Plant, the 650MW Malaya power plants, the 150MW
Casecnan Hydropower plant and the Agus and Pulangui hydroelectric power plants. In 2015,
PSALM completed the privatization and turn-over of power barges 101, 102 and 103 thru
negotiated sale,

‘This bill shall put a stop to the privatization of state power assets ~ particularly the remaining
assets still in government hands — to help keep power rates stable and to keep what should be
kept in state hands for the benefit of the Filipino people

In view of the foregoing, approval of this bill is earnestly sought.

Approved,

Rep. ORS zanane

Bayer Muna Party-List

* key World Energy Statistics 2014, International Energy Agency


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3058

Introduced by BAYAN MUNA Rep. CARLOS ISAGANI T. ZARATE

AN ACT
TO ADDRESS THE WORSENING STATE OF THE POWER INDUSTRY IN THE
PHILIPPINES, AMENDING FOR THE PURPOSE SECTION 47 OF REPUBLIC
ACT NO, 9136, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title — This Act shall be known as the “Power Assets Retention Act of
2016."

SECTION 2.Amendment - Section 47 of Republic Act No.9136, otherwise known as the
Electric Power Industry Reform Act of 2001 is amended to read as follows:

“SEC. 47. NPC Privatization. —
“(a) xxx

“(b) xxx

“XXX,

(0) xxx

“(q) All THE REMAINING POWER assets of PSALM and NPC shall RETAINED

BY THE NATIONAL GOVERNMENT, AND MANAGED BY THE NATIONAL
CORPORATION (NAPOCOR);

“(€) In cases of transfer of possession, control OR operation [or privatization] of
multi-purpose hydro facilities, NATIONAL GOVERNMENT safeguards AND
PROTOCOLS shall be STRICTLY prescribed to ensure that direct water usage AND
RELEASES in cases of SHORTAGES AND INCLEMENT WEATHER
CALAMITIES to protect potable water, irrigation, AGRICULTURAL AND
RESIDENTIAL LANDS and all other requirements imbued with public interest;

“() The Agus and the Pulangui complexes in Mindanao, THE ANGAT
HYDROELECTRIC POWER PLANT AND THE MALAYA THERMAL IN
LUZON, THE NAGA POWER PLANT COMPLEX IN VISAYAS, AND POWER


BARGE 104 shall be excluded from PRIVATIZATION. Their ownership shall be
RETAINED OR transferred to the NAPOCOR and shall continue to be operated by
the NAPOCOR. The said complexes shall be subject to REHABILITATION,
UPGRADING AND MAINTENANCE BY THE NAPOCOR;

GEOTHERMAL
[HERMAL PLANTS.

[ATE SHALL ENDEAVOR TO DEVELOP THE
OF THE COUNTRY AND BUILD NEW G!

NOT BE PRIVATIZED. The geothermal complexes covered by this,
equirement include, but are not limited to, Leyte A and B (Tongonan), Palinpinon,
and Mt. Apo

“XXX,

SECTION 4. Operations, Maintenance/Rehabilitation of Retained and Construction of
Power Plants .-NAPOCOR, in realizing the provisions of this Act, is mandated to tap ten-
percent (10%) of the State’s annual royalties from the Malampaya deepwater gas-to power
project for the operations, maintenance, rehabilitation and construction of retained and new
power plants,

SECTION 3.Repealing Clause. — All other laws, acts, decrees, executive orders, issuances,
and rules and regulations or parts thereof which are contrary to and inconsistent with any
provisions of this Act are hereby repealed, amended, or modified accordingly.

SECTION 4. Separability Clause. — If any provision of this Act is subsequently
declaredunconstitutional, the validity of the remaining provisions hereof shall remain in full
force and effect.

SECTION 5.Effectivity Clause.— This Act shall take effect immediately after its complete
publication either in the Official Gazette or in two newspapers of general circulation in the
Philippines.

Approved,