SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
) 
SENATE 
S.B.No. 216,7 
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Introduced by Senator FRANCIS G. ESCUDERO 
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AN ACT AMENDING 
SECTION 47 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS 
THE ELECTRIC POWER INDUSTRY REFORM ACT 
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 
shaH 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, especiaHy 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. 
<eS: 
FRANCIS G. ESCUDERO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. B. No. 2167 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT AMENDING 
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MAR 10 r 1 :42 
HECEIVED In 
SECTION 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: 
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SECTION.!' Section 47 of Republic Act No. 9136, otherwise known as the Eleclt~c 
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Power Industry Retorm Act of 200 I, is hereby amended to read as follows: 
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"SEC. 47. NPC Privatization. -
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"(a) xxx 
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"(b) xxx 
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~'xxx 
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"(c) xxx 
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"(d) All REMAINING assets ofNPC shall be [sold in an open and transparent 
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manner through public bidding, and the same shall apply to the disposition of IPP 
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contracts] RETAINED BY THE NATIONAL GOVERNMENT; 
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"(e) In cases of transfer of possession, control, operation or privatization of multi-
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purpose hydro facilities, safeguards shall be prescribed to ensure that the national 
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government [may] IS ALWAYS EMPOWERED TO direct water usage IN 
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ALL CASES IT MAY DEEM APPROPRIATE TO SATISFY ALL WATER 
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[in cases of shortage to protect potable water, irrigation, and all other] 
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requirements imbued with public interest; 
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"Cf) The Agus and the Pulangui complexes in Mindanao shall be excluded from 
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among the generation companies that will be [initially] privatized. [Their 
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ownership shall be transferred to the PSALM Corp. and both shall continue to be 
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operated by the NPC. Said complexes may be privatized not earlier than ten (10) 
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years from the effectivity of this Act, and except for Agus III, shall not be subject 
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to Build-Operate-Transfer (B-O-T), Build-Rehabilitate-Operate-Transfer (B-R-O-
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T) and other variations thereof pursuant to Republic Act No. 6957, as amended by 
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Republic Act No. 7718. The privatization of Agus and Pulangui complexes shall 
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be left to the discretion of PSALM Corp. in consultation with CongressJ; 
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"(g) 
THE 
STATE 
SHALL 
ENDEAVOR 
TO 
DEVELOP 
THE 
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GEOTHERMAL RESOURCES OF THE COUNTRY AND BUILD NEW 


GEOTHERMAL PLANTS. The steamtield assets and generating plants of each 
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EXISTING geothermal complex shall not be PRIVATIZED [sold separately. 
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They shall be combined and each geothennal complex shall be sold as one 
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package through public bidding). The geothelmal complexes covered by this 
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requirement include, but are not limited to, Tiwi-Makban, Leyte A and B 
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(Tongonan), Palinpinon, and Mt. Apo; 
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xxx." 
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SEC. 2. 
Repealing Clause. - All laws, decrees, executive orders and rules and 
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regulations inconsistent with the provisions of this Act are hereby repealed and modified 
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accordingly. 
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SEC. 3. 
Separability Clause. - If any provision of this Act is subsequently declared 
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unconstitntional, the validity of the remaining provisions hereof shall remain in full force and 
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effect. 
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SEC. 4. 
This Act shall take effect fifteen (15) days after its complete publication in 
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the Official Gazette or in at least two (2) national newspaper of general circulation, whichever 
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comes first. 
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Approved, 
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