TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
)
SENATE
1164
Senate
of IliC 5'i C.TtJlf!?
25 AUG -7 P6 22
RECEIVED BY:
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
STRENGTHENING THE ENERGY REGULATORY COMMISSION (ERC)f 
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 9136, OTHERWISE 
KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001", AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
Republic Act No. 9136, known as the Electric Power Industry Reform Act 
(EPIRA) of 2001, established the Energy Regulatory Commission (ERC) with the 
mandate to promote competition, encourage market development, ensure consumer 
choice, and penalize abuse of market power in the restructured electricity industry. 
The Act also outlines the state's responsibiiities to ensure and accelerate the total 
electrification of the country, guarantee the quaiity, reliability, security, and 
affordability of the supply of electric power, and protect the public interest as it is 
affected by the rates and services of electric utilities and other providers of electric 
power.
Despite these provisions, the ERC has faced challenges in effectively carrying 
out its mandate due to limitations in its organizational structure, administrative 
capacity, and resources. This biil seeks to address these issues by strengthening and 
reorganizing the ERC, promoting employee skills, expanding employee benefits, and


providing the necessary funds to enable the Commission to perform its functions more 
efficiently and effectively.
One of the key provisions of this measure is the reconstitution of the ERC, 
transforming it into a more robust and independent quasi-judicial body. The new 
structure will consist of a Chairperson and eight members, each with specialized 
expertise in energy, law, economics, finance, or engineering. These members will be 
appointed based on their qualifications, including at least three members being 
lawyers, and two being certified public accountants. In order to improve decision­
making and guarantee transparency in regulatory practices, it clearly defined the 
qualifications and responsibilities of ERC members.
This bill also proposes the creation of specialized divisions within the ERC to 
enhance its efficiency. Each division will consist of three members, and decisions will 
require the majority vote of at least two members. This new structure aims to expedite 
the ERC's processes and ensure that decisions are made based on a well-rounded 
understanding of the issues. Furthermore, members of the ERC will be provided with 
job security, with provisions for their removal only for just cause, ensuring stability 
and impartiality in the Commission's operations.
Another significant enhancement is the strengthening of the ERC's human 
resources. This measure mandates the establishment of a comprehensive training 
program to equip ERC personnel with the necessary skills and knowledge to handle 
emerging challenges in the energy sector, which includes allocating a portion of the 
budget for the continuous professional development of its staff. Moreover, this bill 
promotes competitive compensation and benefits for ERC employees, including health 
care, accident insurance, and performance incentives, ensuring that the Commission 
attracts and retains skilled professionals.
Finally, the proposed measure emphasizes transparency and public 
accountability by requiring the ERC to adopt an Electronic Disclosure and Data Access 
system (EDDA) within three years. This system will ensure that industry stakeholders


and the public can access crucial reports, decisions, and other regulatory documents, 
enhancing the transparency of the Commission's operations. These provisions will 
enable the ERC to fulfill its role more effectively, contributing to a more competitive, 
sustainable, and consumer-protective energy sector in the Philippines.
Hence, I am seeking the immediate passage of this measure.
EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
)
SENATE
1164
of Jlif %
25 AUG-7 PS 22
RECEIVED by;
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
STRENGTHENING THE ENERGY REGULATORY COMMISSION (ERC), 
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 9136, OTHERWISE 
KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001", AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Energy Regulatory
2 
Commission Act'.
3 
Sec. 2. Declaration of Policy. - The State recognizes the significant role of the
4 
Energy Regulatory Commission in ensuring transparent and reasonable prices of
5 
electricity in a regime of free and fair competition and full public accountability to
6 
achieve greater operational and economic efficiency. Likewise, public interest
7 
demands the protection of consumers as they are affected by the rates and services
8 
of generation companies, electric utilities, and other electric power stakeholders.
9 
Towards this end, the State shall:
10 
1) Establish a strong, independent, transparent, and accountable regulatory
11 
body; and
12 
2) Ensure the efficient and effective performance of the functions and
13 
mandates of the regulatory body to enhance competitiveness in the electric
14 
power industry.


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Sec. 3. Definition of Terms. - For the purpose of this Act, the following terms
2 
shall have the following meaning unless provided otherwise:
3 
1) Commission refers to the decision-making body of the Energy Regulatory
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Commission under Republic Act No. 9136 composed of one (1) Chairperson
5 
and eight (8) Commissioners;
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2) Electric Power Industry Participant refers to any person or entity engaged
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in the generation, transmission, distribution, or supply of electricity;
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3) Electronic Disclosure and Data Access system (EDDA) repository refers to
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the system for disclosure of energy industry information for public access to
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ensure transparency and consumer protection using electronic database
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and communications system;
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4) Joint Congressional ENERGY Commission refers to the Commission created
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under Republic Act No. 9136, otherwise known as the "Electric Power
14 
Industry Reform Act of 2001", as amended;
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5) Key ERC Personnel refers to employees who hold executive or managerial
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positions in the ERC; and
17 
6) Quasi-Judicial Body refers to an entity, such as the ERC, which has the
18 
powers and functions to conduct hearings, find facts, apply governing law
19 
and resolve disputes between the agency and an entity.
20 
Sec. 4. Section 38 of Republic Act No. 9136 is hereby amended, to read as
21 
follows:
22 
"[Section—38. Creation of the Energy Reguiatory
23 
Commission. There is hereby created an independent, quasi-
24 
judicial regulatory body-to be named the Energy Regulatory
25 
Commissions (ERC). For this purpose, the-existing Energy
26 
Regulatory Board (ERB) created-under Executive Order 
No.
27 
172, as amended, is hereby abolished.]
28 
"[The Commission shall be composed of a Chairman
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and four (4) members to be appointed by the President of the
30 
Philippines.—The—Chairman—aed—the—members—of the
31 
Commission shall be natural-born citizens and residents of the
32 
Philippines, persons of good moral character, at least thirty-


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five (35) years of age, and of recognized competence in ony
of the following fietdsr energy, low, economics, finance,
commcrce7-or engineering, with at least thrcc-(3>years actual
and distinguished experience in their respective fields of
expertise: Provided, That out of the four (^l) members of the
Commission, at least one (1) shall be a member of the
Philippine Bar with at least ton (10) yoars-experienee in-the
active practice of law, and one (1) shall be a certified public
accountant with at least ten (10) years-experience-ifi-acttvc
practice.]
"[Within throe (3) months from the creation of the ERC, 
the Chairman shall submit for the approval by-the Prosident-of
the Philippines the new organizational structure and plantilla
positions-necessary to carry out the powers-and functions of
the ERC.]
"[The Chairman -of the Commission, who shall be a 
member of the Philippine Bar, shall act as the Chief Executive
Officer of the Commission.]
"[All members of the Commission shall have a term-of 
seven (7)-years: Provided, That for the first appointees, the
Chairman shall hold office for seven (7) years, two (2)
members shall hold office for five (5) years and the other two
(3)—members—shall—held—office—for—three—(3)
years; Provided, further, That-appointment to any future
vacancy shall only be for -the unexpired term of-the
predecessor:- Provided, finally,—That—there—shall—be—no
reappointment and in no case shall any member servo for
more than seven (7)-years in the Commission.]
"[The Chairman and members of the Commission shall 
assume office of the beginning of their terms: Provided, That,
if upon the effectivity-ef this Act, the Commission has not been
constituted and the new staffing pattern and plantilla positions


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tiavc not been approved and fillod-up, the current Board and
existing pcrGonncI of ERB shall continuo to-held-office.]
"[The existing-personnei-of the ERB, if qualified, shall 
be given-preference in the filling up of plantilla positions
created in the ERC, subject to existing-eivU-sefvtce-rules and
regulations.]
"[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.]
"[The Chairman and members of the Commission-or 
any of their relatives within the fourth-civil--degree-of
consanguinity or affinity, legitimate or common law, shall bo
prohibited from holding any interest whatsoever,--either-as
investor, stockholder, officer or director, in any company or
entity engaged-in-tho 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.]
"[The presence of at least three (3) members of the 
Gommission 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 quosi judicial functions: Provided, in fixing
rates and-tariffs, an affirmative-vote of three (3) members
shall- be required.]
"SEC. 38. STRENGTHENING AND 
RECONSTITUTION OF THE ENERGY REGULATORY 
COMMISSION. - THE ENERGY REGULATORY 
COMMISSION (ERC) IS HEREBY RECONSTITUTED AS 
AN INDEPENDENT, QUASI-JUDICIAL REGULATORY 
BODY, WITH POWERS TO PROMULGATE AND


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ENFORCE RULES AND REGULATIONS TO EFFECTIVELY
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IMPLEMENT THE PROVISIONS OF THE EPIRA AND
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THIS ACT. TOWARDS THIS END, THE ERC SHALL BE
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EXCLUSIVELY RESPONSIBLE FOR THE REGULATION
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OF THE ELECTRIC POWER AND ENERGY INDUSTRY
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AND SHALL ENJOY LIMITED FISCAL AUTONOMY. ITS
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APPROVED ANNUAL BUDGET SHALL BE
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AUTOMATICALLY AND REGULARLY RELEASED.
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"THE COMMISSION SHALL BE COMPOSED OF A
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CHAIRPERSON AND EIGHT (8) MEMBERS. THE
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CHAIRPERSON AND THE REST OF THE MEMBERS
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SHALL BE APPOINTED BY THE PRESIDENT OF THE
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PHILIPPINES AND SHALL SERVE FOR A TERM OF
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SEVEN YEARS. PROVIDED, THAT THE FIRST TWO (2)
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APPOINTED MEMBERS SHALL SERVE FOR SEVEN (7)
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YEARS, THE LAST TWO (2) APPOINTED MEMBERS
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SHALL SERVE FOR FIVE (5) YEARS: PROVIDED,
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FINALLY, THAT THERE SHALL BE NO REAPPOINTMENT
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AND IN NO CASE SHALL ANY MEMBER SERVE FOR
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MORE THAN SEVEN (7) YEARS IN THE COMMISSION."
21 
Sec. 5. The following new sections shall be inserted after Section 38 of Republic
22 
Act No. 9136:
23 
"SEC. 38(A). QUALIFICATION REQUIREMENTS. -
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THE CHAIRPERSON AND THE MEMBERS OF THE
25 
COMMISSION SHALL BE NATURAL-BORN CITIZENS
26 
AND RESIDENTS OF THE PHILIPPINES, PERSONS OF
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GOOD MORAL CHARACTER, AT LEAST FORTY (40)
28 
YEARS OF AGE, AND OF RECOGNIZED COMPETENCE IN
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ANY OF THE FOLLOWING FIELDS: ENERGY, LAW,
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ECONOMICS, FINANCE, COMMERCE, OR
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ENGINEERING, WITH AT LEAST FIVE (5) YEARS OF
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ACTUAL AND DISTINGUISHED EXPERIENCE IN THEIR


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RESPECTIVE FIELDS OF EXPERTISE: PROVIDED, THAT 
OUT OF THE EIGHT (8) MEMBERS OF THE 
COMMISSION, AT LEAST THREE (3), INCLUDING THE 
CHAIRPERSON, SHALL BE MEMBERS OF THE 
PHILIPPINE BAR WITH AT LEAST TEN (10) YEARS OF 
EXPERIENCE IN THE ACTIVE PRACTICE OF LAW, AT 
LEAST TWO (2) MEMBERS SHALL BE CERTIFIED 
PUBLIC ACCOUNTANTS WITH AT LEAST TEN (10) 
YEARS OF EXPERIENCE IN THE ACTIVE PRACTICE OF 
ACCOUNTING; AND THE REMAINING FOUR (4) 
MEMBERS SHALL COME FROM ANY OF THE FIELDS OF 
ENERGY, ECONOMICS, FINANCE OR ENGINEERING.
"THE MEMBERS OF THE COMMISSION SHALL, 
UPON ASSUMPTION OF OFFICE:
"A) PUBLICLY DISCLOSE ANY EMPLOYMENT, 
CONSULTANCY, OR ANY CONNECTION WITH, AND 
ANY PECUNIARY INTEREST IN ANY ELECTRIC POWER 
INDUSTRY PARTICIPANT;
"B) PUBLICLY DISCLOSE IF HIS OR HER 
SPOUSE, PARTNER, AND ANY RELATIVE BY 
CONSANGUINITY OR AFFINITY WITHIN THE FOURTH 
CIVIL DEGREE IS EMPLOYED OR HAS A CONSULTANCY 
OR ANY CONNECTION WITH, OR HAS ANY PECUNIARY 
INTEREST IN ANY ELECTRIC POWER INDUSTRY 
PARTICIPANT;
"C) DIVEST THROUGH SALE OR LEGAL 
DISPOSITION ANY AND ALL INTERESTS IN ANY 
ELECTRIC POWER INDUSTRY PARTICIPANT; AND
"D) TERMINATE EMPLOYMENT OR 
CONSULTANCY WITH ANY ELECTRIC POWER 
INDUSTRY PARTICIPANT.


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"SEC. 38(B). SECURITY OF TENURE. - 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.
"SEC. 38(C). PROHIBITIONS. - THE 
CHAIRPERSON AND MEMBERS OF THE COMMISSION 
OR ANY OF THEIR RELATIVES WITHIN THE FOURTH 
CIVIL DEGREE OF CONSANGUINITY OR AFFINITY, 
SHALL BE PROHIBITED FROM HOLDING ANY 
INTEREST WHATSOEVER, EITHER AS INVESTOR, 
STOCKHOLDER, OFFICER OR DIRECTOR, IN ANY 
COMPANY OR ENTITY ENGAGED IN THE BUSINESS OF 
GENERATING, TRANSMITTING, DISTRIBUTING OR 
SUPPLYING ELECTRICITY. UPON THE ASSUMPTION 
BY THE CHAIRPERSON AND THE MEMBERS OF THE 
ERC OF RESPECTIVE POSITIONS, THE CHAIRPERSON 
AND THE MEMBERS OF THE ERC AND THEIR 
RESPECTIVE RELATIVES WITHIN THE PRESCRIBED 
DEGREE OF PERSONAL RELATIONS SHALL DIVEST 
THEMSELVES OF ALL THEIR SAID INTERESTS.
"SEC. 38(D). CREATION OF NEW DIVISIONS. - 
THE COMMISSION SHALL BE DIVIDED INTO THREE (3) 
DIVISIONS, WITH THREE (3) MEMBERS EACH, 
INCLUDING THE CHAIRPERSON. EACH DIVISION 
SHALL HAVE AT LEAST ONE (1) MEMBER WHO IS A 
LAWYER AND ONE (1) MEMBER WHO IS AN 
ACCOUNTANT OR ECONOMIST. THE PRESENCE OF AT 
LEAST TWO (2) OF THE (3) MEMBERS OF DIVISION 
SHALL CONSTITUTE A QUORUM, AND THE MAJORITY 
VOTE AT LEAST TWO (2) MEMBERS OF THE DIVISION 
IN WHICH A QUORUM WAS PRESENT SHALL BE


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NECESSARY FOR THE ADOPTION OF ANY RULE, 
RULING, ORDER, RESOLUTION, DECISION OR OTHER 
ACTS OF THE COMMISSION. FINAL DECISIONS OF THE 
DIVISIONS MAY BE APPEALED TO THE COURT OF 
APPEALS.
"SEC. 38(E). QUORUM. - AT LEAST FIVE (5) 
MEMBERS OF THE ERC SHALL CONSTITUTE A QUORUM 
IN THE COMMISSION EN BANC. THE CHAIRPERSON 
SHALL BE THE PRESIDING OFFICER DURING A 
COMMISSION EN BANC HEARING. IN THE ABSENCE OF 
THE CHAIRPERSON, THE MEMBERS PRESENT, 
CONSTITUTING A QUORUM, SHALL SELECT AMONG 
THEMSELVES A PRESIDING OFFICER. A VALID 
DECISION OF THE COMMISSION EN BANC SHALL BE 
CONCURRED IN BY THE MAJORITY OF THE MEMBERS 
CONSTITUTING A QUORUM.
"THE COMMISSION EN BANC SHALL ACT 
PRIMARILY ON THE FOLLOWING CASES:
"A) CASES INVOLVING THE ERC'S POWER TO 
PROMULGATE RULES OR REGULATIONS;
"B) CASES INVOLVING CONTRACTS WORTH 
MORE THAN FIVE HUNDRED MILLION PESOS 
(P500,000,000.00);
"C) CASES INVOLVING THE NATIONAL 
TRANSMISSION CORPORATION (TRANSCO) OR ITS 
AUTHORIZED CONCESSIONAIRE, OPERATES THE 
TRANSMISSION NETWORK;
"D) ALL CASES INVOLVING PRIVATE 
DISTRIBUTION UTILITIES;
"E) CASES PREVIOUSLY HANDLED BY THE ERC 
DIVISION IN WHICH NO VALID DECISION WAS 
REACHED; AND


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"F) OTHER CASES AS MAY BE DESIGNATED BY 
THE COMMISSION EN BANC ITSELF: PROVIDED, THAT 
FOR CAPITAL EXPENDITURE APPLICATIONS, THE 
COMMISSION SHALL RENDER ITS DECISION WITHIN 
SIXTY (60) CALENDAR DAYS, WITHOUT EXTENSION, 
AFTER THE FIRST HEARING AT THE PETITIONER'S 
COVERAGE AREA: PROVIDED, FURTHER, THAT 
APPLICATIONS FOR EMERGENCY CAPITAL 
EXPENDITURES SHALL BE DECIDED WITHIN FORTY- 
FIVE (45) DAYS: PROVIDED, FINALLY, THAT FOR 
APPLICATIONS FOR RATE CASES, THE COMMISSION 
SHALL RENDER ITS PROVISIONAL AUTHORITY 
WITHIN NINETY (90) CALENDAR DAYS, WITHOUT 
EXTENSION, RECKONED AFTER THE TERMINATION OF 
EVIDENTIAL HEARING WHEREIN THE COMMISSION 
SHALL DECIDE ON THE CASE SUBMITTED FOR 
RESOLUTION.
"SEC. 38(F). CODE OF CONDUCT AND ETHICAL 
STANDARDS. - THE CHAIRPERSON AND THE MEMBERS 
OF THE ERC SHALL CONFORM TO THE CODE OF 
CONDUCT AND ETHICAL STANDARDS AS SPECIFIED 
IN REPUBLIC ACT NO. 6713. ANY VIOLATION OF THE 
ABOVE-MENTIONED CODE OF CONDUCT AND ETHICAL 
STANDARDS SHALL CONSTITUTE JUST CAUSE FOR 
REMOVAL FROM OFFICE BY THE OFFICE OF THE 
PRESIDENT OF THE PHILIPPINES, WITHOUT 
PREJUDICE TO ANY OTHER PENALTIES UNDER ALL 
APPLICABLE LAWS. AFTER TERMINATING 
EMPLOYMENT OR SERVICE WITH THE ERC, THE 
CHAIRPERSON AND MEMBERS OF THE ERC, 
EXECUTIVE DIRECTOR, SERVICE OR OFFICE 
DIRECTORS, OR ITS EQUIVALENT, WHO ARE


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APPOINTED, OR EMPLOYED WITH THE ERC, SHALL BE
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PROHIBITED FROM ACCEPTING EMPLOYMENT WITH
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ANY REGULATED ENTITY FOR A PERIOD OF THREE (3)
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YEARS FOLLOWING SUCH TERMINATION, AND ALL
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MEMBERS OF THE ERC SHALL BE PROHIBITED FROM
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APPEARING BEFORE THE ERC ON BEHALF OF ANY
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REGULATED ENTITY FOR A PERIOD OF THREE (3)
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YEARS AFTER SAID TERMINATION OF EMPLOYMENT."
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Sec. 6. Creation of Oversight Committees or Services. - The Commission en
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Banc may create oversight committees or services as may be deemed necessary and
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consistent with the functions and mandates of the ERC. To achieve the goals of this
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Act, the Commission, as an independent regulatory body, is hereby authorized to
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provide for its reorganization, to streamline its structure and operations, upgrade its
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human resource complement and enable the same to perform its functions more
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efficiently and effectively and exercise its powers under this Act and under Republic
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Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001"
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(EPIRA), as amended.
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Sec. 7. Commission En Banc. - In addition to the functions enumerated in
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Republic Act No. 9136, Republic Act No. 9513, otherwise known as the "Renewable
20 
Energy Act of 2008," and other relevant laws, all the members of the Commission
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shall:
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a) Exercise all quasi-judicial functions in furtherance of the ERCs mandate under
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Republic Act No. 9136;
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b) Act on the selection and appointment of all ERC personnel: Provided, That the
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appointment of ERC personnel with a rank lower than a Division Chief may be
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deiegated to the Chairperson;
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c) Approve the internal rules, organizational structure, and operational strategy of
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the ERC;
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d) Act as the Head of Procuring Entity (HOPE) and exercise all duties and powers
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as stated in Republic Act No. 9184, otherwise known as the "Government
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Procurement Reform Act": Provided, That the Commission may delegate its
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functions under the said Act;
10


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e) Appoint the Executive Director of the ERC: Provided, That the requirements,
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prohibited acts, qualifications, and duties and responsibilities stated in Sections
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4, 7, 8, and 19 of this Act are complied with;
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f) Review and act on the endorsement of the proposed ERC annual budget:
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Provided, That such endorsement shall come from the Executive Director and
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shall be substantiated with supporting documents; and
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g) Initiate, motu proprio or upon formal complaint, investigations against the
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Executive Director and act upon [these] such investigations: Provided, That
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such investigation is without prejudice to the filing of administrative or criminal
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cases against the Executive Director.
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Sec. 8. Duties and Responsibiiities of the Chairperson. - The Chairperson as
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head of the Commission en Banc shall have the following duties and responsibilities:
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1) Chairperson of the Commission:
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a) Determine the date, and location of the regular or special en Banc
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Commission meeting and prepare the agenda for the meeting with the
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consensus of the members of the Commission;
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b) Preside over meetings of the Commission: Provided, that the Chairperson
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shall have the right to vote on all matters, issues or case pending before
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the Commission en Banc;
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2) Chairperson Acting as Chief Executive Officer (CEO):
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a) Lead and oversee the implementation of the Commission's mandate under
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the EPIRA in accordance with the Commission approved internal rules,
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organizational and operational strategy;
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b) Ensure that good governance policies, practices, rules and procedures that
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promote the highest standards of integrity, competence, and transparency
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are in place;
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c) Exercise administrative supervision over the Executive Director and Service
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Directors;
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d) Delegate administrative authority to officials and employees of the ERC for
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the performance of any function;
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e) Supervise the preparation of the annual and supplemental budgets of the
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Commission; and
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f) Perform such other functions as may be provided by law.
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Sec. 9. Executive Director. - The Executive Director shall be the Chief Operating
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Officer (COO) who shall act under the supervision of the Chairperson who is the Chief
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Executive Officer (CEO).
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The Executive Director shall preferably be a lawyer with at least ten (10) years
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of active practice of law, Career Service Executive Eligible (CSEE) or Career Executive
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Service Eligible (CESE) with at least five (5) years experience in management and
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administration to be appointed by the Commission en Banc.
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The duties and responsibilities of the Executive Director shall include the
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following:
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a) Developing and proposing, for the Commission's approval, the
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operationalization of the strategies and policies agreed upon by the
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Commission;
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b) Effectively executing the approved operationalization of the strategies and
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policies agreed upon by the Commission;
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c) Leading the management of the daily operations of the ERC in accordance
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with the plans and within the budget approved by the Commission;
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d) Assuming full responsibility for the overall supervision and control of all
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divisions, units, and services of the ERC;
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e) Assigning to each division, unit, and service of the ERC such duties that are
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considered necessary or expedient;
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f) Coordinating the workings of the divisions, units, and services of the ERC;
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g) Establishing a mechanism for capacity building for all employees of the ERC
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to continuously enhance technical competence: Provided, That such
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mechanism shall be based on the principle of meritocracy;
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h) Ensuring compliance with the ERC's Enhanced Merit Selection Plan and/or
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other plans related to personnel selection duly approved by the Commission
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when it comes to the hiring and promotion of employees;
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i) Leading the management to ensure effective working relationships with the
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Commission by regularly communicating with the Chairperson to review key
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developments, issues, opportunities, and concerns;
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j) Ensuring that the management gives priority to providing documents and 
reports, which contain relevant, accurate, timely, and clear information 
necessary for the Commission to fulfill its duties;
k) Maintaining regular dialogue with the Commission while ensuring that the 
Commission, especially the Chairperson, is alerted on forthcoming complex, 
contentious, sensitive, or strategic issues facing the ERC;
l) Advising the Commission on any matter referred to the Executive Director;
m) Managing the affairs of the ERC in accordance with good corporate 
governance practices and procedures while promoting the highest 
standards of independence, transparency, integrity and probity;
n) Initiating investigations and recommending administrative sanctions against 
erring employees, without prejudice to the filing of any criminal action 
against the concerned employee;
o) Regularly submitting to the Commission updates on the operations of the 
ERC;
p) Oversee the daily operations of the ERC and ensure the smooth functioning 
of all ERC processes;
q) Provide the Commission with periodic updates on the day-to-day operations 
of the ERC towards the achievement of its target objectives;
r) Ensure the adequacy of ERCs manpower complement, equipment, facilities 
or space, materials, supplies and systems;
s) Develop, in coordination with the Service Directors, the ERCs annual 
operating plan and internal rules to be submitted to the Commission for its 
approval;
t) Establish, in coordination with Service Directors, periodic performance 
targets of all services to be submitted to the Commission for its approval;
u) Evaluate and ensure compliance of the services and all ERC employees with 
Commission approved periodic performance targets, annual operating plan 
and internal rules;
v) Coordinate with all services on the preparation of the proposed annual 
budget and procurement plan to the Commission for its approval;
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w) Monitor and ensure the implementation of the Commission approved annual
2 
budget and procurement plan in accordance with the DBM's expenditure
3 
program; and
4 
x) Perform such other functions related to the foregoing or as may be assigned
5 
by the Commission en Banc or the Chairperson.
6 
All decisions of the Executive Director involving budgeting and disbursement of
7 
funds shall be subject to the approval of the Commission.
8 
Sec. 10. Duties and Responsibilities of the Members of the Commission. - In
9 
addition to the functions enumerated in Republic Act No. 9136, the members of the
10 
Commission shall:
11 
a) Regularly attend and actively participate in the meetings of the Commission
12 
where any case, issue, or matter within its jurisdiction is under
13 
consideration;
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b) Recommend to the Chairperson the inclusion in the agenda of any case,
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issue, or matter deemed appropriate in the performance of the
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Commission's functions;
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c) Thoroughly analyze cases, issues, and matters pending before the
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Commission;
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d) Participate in the continuous education and capacity-building programs of
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the Commission to enhance technical competence;
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e) Abstain from acts which unduly influence, impede, or hamper the Executive
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Director or any ERC employee from effectively fulfilling his or her duties and
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responsibilities;
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f) Perform in good faith and to the best of his or her ability, the functions
25 
stated in Republic Act No. 9136 and the duties and responsibilities specified
26 
in this Act.
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g) The Commission Member as Head or Chairperson of the Second or Third
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Division shall have the following duties and responsibilities: 1) Determine
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the date, time and location of the regular or special Division meeting and
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prepare the agenda for the meeting with the consensus of the members of
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the Division; 2) Preside over meetings of the Division. Provided, That the
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Chairperson shall have the right to vote on all matters, issues or case
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pending before Division.
3 
Sec. 11. Section 39 of the Republic Act No. 9136 is hereby amended to read
4 
as follows:
5 
"SEC. 39. [Compensation and Other Emolumefrts-for]
6 
ADJUSTED COMPENSATION 
STRUCTURE AND OTHER
7 
EMOLUMENTS FOR THE ERC Personnel. — The compensation
8 
and other emoluments for the CHAIRMAN AND MEMBERS OF
9 
THE Commission and the ERC personnel shall be exempted from
10 
the coverage of Republic Act No. 6758, otherwise known as the
11 
"Salary Standardization Act", AS AMENDED BY EXECUTIVE
12 
ORDER NO. 201, SERIES OF 2016. [For this purpose, the
13 
scfiedule of compensation of the ERC personnel, except for the
14 
initial salaries and compensation of the Chairman and members of
15 
the-Commission, shall be submitted for approval by the President
16 
of the Philippines. The new schedule of compensation shall be
17 
implemented within six (6) months from the effectivity of this Act
18 
and may be upgraded by the President of the Philippines as the
19 
need arises: Provided, That in no case shall the rate bo upgraded
20 
more than-onco a year.]
21 
"The [Chairman] CHAIRPERSON and members of the
22 
Commission shall [mitially] be entitled to the same salaries,
23 
allowances and benefits as those of the Presiding Justice and
24 
Associate Justices of the [Court of Appeals] SUPREME COURT,
25 
respectively. The [Chairman] CHAIRPERSON and the members of
26 
the Commission shall, upon completion of their term or upon
27 
becoming eligible for retirement under existing laws, be entitled to
28 
the same retirement benefits and the privileges provided for the
29 
Presiding Justice and Associate Justices of the [Court of Appeals]
30 
SUPREME COURT, respectively.
31 
"THE COMPENSATION 
SCHEDULE OF THE ERC
32 
PERSONNEL SHALL BE COMPETITIVE WITH THE SALARY
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RANGE OF OTHER REGULATORY AGENCIES, AND THE
2 
ELECTRIC POWER INDUSTRY STAKEHOLDERS. FOR THIS
3 
PURPOSE, THE COMMISSION EN BANC SHALL, SUBJECT TO
4 
THE APPROVAL OF THE PRESIDENT OF THE PHILIPPINES,
5 
ADJUST THE COMPENSATION SCHEDULE AND BENEFITS OF
6 
ERC PERSONNEL, INCLUDING ANNUAL REVIEW OR
7 
INCREASES BASED ON PRODUCTIVITY AND EFFICIENCY
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ONCE EVERY TWO (2) YEARS TO ENSURE THAT THE SAME
9 
IS COMPARABLE WITH THE COMPENSATION PACKAGE OF
10 
OTHER REGULATORY AGENCIES, AND THE ELECTRIC
11 
POWER INDUSTRY STAKEHOLDERS."
12 
Sec. 12. Section 40 of the Republic Act No. 9136 is hereby amended to read as
13 
follows:
14 
"SEC. 40. Enhancement of Technical Competence. The ERC
15 
shall establish A rigorous AND SUSTAINABLE training program[s
16 
for its staff for the purpose of enhancing the technical competence
17 
of- the ERG- in the following areas: evaluation of technical
18 
pefformance and monitoring of compliance with service and
19 
performancG standards, performance-based rate-setting reform,
20 
environmental standards and such other-areas as will enable the
21 
ERC to adequately perform its duties and-functions.] THAT WILL
22 
ALLOW ITS STAFF TO ACQUIRE THE NECESSARY
23 
KNOWLEDGE AND SKILLS AT PAR WITH THE PERSONNEL
24 
OF REGULATORS FROM OTHER JURISDICTIONS AND
25 
ECONOMIES.
26 
"FOR THIS PURPOSE, THE ERC SHALL DESIGN A
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STANDARDIZED TRAINING AND DEVELOPMENT PROGRAM
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AND FACILITATE THE REGULAR CONDUCT OF NECESSARY
29 
TRAINING FOR NEW AND INCUMBENT ERC PERSONNEL.
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"THE ERC SHALL ALLOT NO LESS THAN FIFTEEN
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PERCENT (15%) OF ITS TOTAL ANNUAL APPROVED
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BUDGET FOR THE TRAINING AND UPGRADING OF SKILLS 
OF ITS PERSONNEL.
"THE ERG MAY HIRE A REASONABLE NUMBER OF 
CONSULTANTS OR EXPERTS AS MAY BE APPROPRIATE AND 
NECESSARY TO GIVE ADVICE TO AND PERFORM SERVICES 
FOR THE ERC. THE TERMS AND CONDITIONS OF THE 
ENGAGEMENT SHALL BE AS DETERMINED BY THE ERC, 
SUBJECT TO THE PROVISIONS OF REPUBLIC ACT NO. 9184, 
OTHERWISE KNOWN AS THE "GOVERNMENT 
PROCUREMENT REFORM ACT"."
Sec. 13. Seminar and Other Professional Fees. - Fees for relevant seminars, 
professional membership, registration fees, including those for mandatory continuing 
professional education (CPE), and related miscellaneous expenses of ERC employees 
holding positions for which a professional license is required by the office, shall be 
borne by the ERC.
Sec. 14. Benefits and Privileges. - The ERC shall provide its employees with 
the following benefits:
a) Health care services through a health maintenance organization (HMO). 
Expenses for mandatory annual executive check-up for all employees shall 
be for the account of the ERC;
b) All employees shall be covered by accident insurance policies procured by 
the ERC at its own expense;
c) A provident fund, which shall consist of contributions made by both the ERC 
and its employees to a common fund for the payment of benefits to 
employees or their heirs;
d) Performance incentives in accordance with a performance incentive 
program designed and duly approved by the Commission en Banc, which 
shall in no case be less than the incentives provided under existing laws.
Sec. 15. Section 41 of Republic Act No. 9136 is hereby amended to read as
follows:
"SEC. 41. PROTECTION AND Promotion of Consumer 
Interests. - The ERC shall [ha^dte] ADDRESS AND PROVIDE
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TIMELY RESOLUTIONS TO consumer complaints and ensure
2 
THE adequate [promotion] PROTECTION of consumer
3 
interests THROUGH THE ADOPTION OF POLICIES THAT
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FOSTER GOALS SUCH AS PUBLIC ACCESS TO THE ERC
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AND ITS PROCESSES, CONSUMER EDUCATION, 
AND
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EFFICIENT UTILIZATION OF ERC RESOURCES.
7 
"FOR THIS PURPOSE, THE ERC SHALL REGULARLY
8 
CONDUCT TRAININGS FOR THE EFFICIENT HANDLING
9 
OF CONSUMER COMPLAINTS BY THE DISTRIBUTION
10 
UTILITIES' CONSUMER WELFARE DESK (CWD). THE ERC
11 
SHALL ALLOCATE AN ANNUAL BUDGET FOR 
THIS
12 
PURPOSE."
13 
Sec. 16. Limited Fiscal Autonomy. - In addition to its yearly appropriation
14 
authorized in the General Appropriations Act (GAA), the Commission shall be allowed
15 
to use for the following year thirty percent (30%) of its revenues generated from the
16 
collection of fees, assessments, licenses, fines, penalties and other charges. The said
17 
amount shall be utilized in the following manner:
18 
a) Ten percent (10%) of such income shall be used to augment ERCs Capital
19 
Outlay (CO) Budget;
20 
b) Sixty percent (60%) of such income shall be used to augment the ERCs
21 
Maintenance and Other Operating Expenses (MOOE) Budget; and
22 
c) Thirty percent (30%) of such income shall be used to augment the ERCs
23 
Personnel Service (PS) Budget intended to augment the benefits of the ERC
24 
Officers, personnel and staff except for the Chairperson and members of
25 
the Commission.
26 
In case the ERC fails to fully utilize the revenues mentioned herein, the
27 
unutilized amount shall revert to the National Treasury.
28 
Sec. 17. Public Disclosure and Transparency. -The Commission shall submit
29 
and make available to the public, within the prescribed period, reports pertinent to
30 
compliance submissions, reports, certificates, orders, or decisions, except those
31 
designated as confidential submissions affecting trade secrets or the like, made or
32 
issued in relation to industry players in the generation, transmission, distribution, and
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supply sectors, such as resolutions, orders, decisions, certificates of compliance,
2 
certificates of registrations, retail rates of distribution utilities, system loss data of
3 
distribution utilities, system and capital infrastructure, consumer complaints,
4 
applications, petitions, and other similar public documents to an Electronic Disclosure
5 
and Data Access system (EDDA) repository. The EDDA shall start operating within
6 
three (3) years from the effectivity of this Act.
7 
Sec. 18. Franking Privilege. - All official mail matters and telegrams of the ERC
8 
addressed for delivery within the Philippines shall be received, transmitted, and
9 
delivered free of charge: Provided, That such mail matters shall not exceed two (2)
10 
kilograms.
11 
Sec. 19. Section 42 of Republic Act No. 9136 is hereby amended to read as
12 
follows:
13 
"SEC. 42. [Budget from the ERC] APPROPRIA TIONS. -
14 
[The—amount—of—Gne—hundred—fifty—million—pesos
15 
(P150,000,000.00) is hereby allocated from the existing budget
16 
of the ERB for the initial operation of the ERC. Any balance shall
17 
initially be sourced from the Office of-the President of the
18 
Philippines^-Thereafter, the annual budget of the ERC shall be
19 
included in the regular or special appropriations.] SUCH SUMS
20 
AS MAY BE NECESSARY FOR THE EFFECTIVE
21 
IMPLEMENTATION OF THIS ACT SHALL BE TAKEN FROM
22 
THE CURRENT FISCAL YEAR APPROPRIATION OF ERC.
23 
THEREAFTER, THE AMOUNT NEEDED FOR THE
24 
CONTINUOUS IMPLEMENTATION OF THIS ACT SHALL BE
25 
INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS
26 
ACT."
27 
Sec. 20. Prohibited Acts. - The members of the Commission, within the
28 
duration of their term, shall be prohibited from:
29 
a) Taking up any employment or consultancy arrangement with any Electric
30 
Power Industry Participant;
31 
b) Holding any connection to and any pecuniary interest in any Electric Power
32 
Industry Participant;
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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 or their subsidiaries.
The members of the Commission, after the cessation of their service, shall be 
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 three (3) years following the cessation 
of their service.
Any spouse, partner, and relative by consanguinity or affinity within the fourth 
civil degree of the members of the Commission shall be prohibited from:
a) Taking up any employment or consultancy arrangement with any Electric 
Power Industry Participant during the incumbency of the member of the 
Commission to whom he or she is related to;
b) Holding any connection to and pecuniary interest in any Electric Power 
Industry Participant during the incumbency of the member of the 
Commission to whom he or she is related to; and
c) Appearing as counsel or agent or any matter pending before the 
Commission or transacting business directly or indirectly therein during the 
incumbency of the member of the Commission to whom he or she is related 
to, and within THREE (3) years from cessation of their service.
Sec. 21. Transitory Provision. - The current members of the Commission shall 
continue to serve in such capacity until the completion of their term. The qualifications, 
requirements, and prohibitions stated in Sections 4, 7 and 19 of this Act shall apply to 
new members of the Commission. The current Chairperson shall immediately divest 
himself or herself of his or her role and powers as the Chief Executive Officer of the 
Commission upon the effectivity of this Act. The current Executive Director shall 
assume the duties and responsibilities laid out in Section 9 of this Act upon the
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effectivity of this Act: Provided, That upon such assumption, the current Executive
2 
Director shall immediately comply with the requirements and prohibitions stated in
3 
Sections 4 and 19 of this Act: Provided, further, That the current Executive Director
4 
shall serve as such until his resignation, retirement or termination for cause.
5 
Sec. 22. Oversight Committee. - Upon the effectivity of this Act, the JCEC
6 
established under Republic Act No. 9136, otherwise known as the "Electric Power
7 
Industry Reform Act of 2001," as amended, shall exercise oversight powers over the
8 
implementation of this Act.
9 
Sec. 23. Progress Report.-Ihe Chairperson of the ERC shall prepare an annual
10 
report on the status of the implementation of the ERC Programs which shall be
11 
submitted, through the Secretary of the DOE, to the President and to the Chairpersons
12 
of the Committee on Energy of the Senate and the House of Representatives.
13 
Sec. 24. Period of Impiementation. - The modernization program under this
14 
Act shall be implemented for an initial period of two (2) years: Provided, That
15 
payments for multi-year contract obligations incurred under this Act may extend
16 
beyond this period: Provided, further. That ERC shall continue to modernize and
17 
constantly update its operational capabilities to keep pace with best global practices.
18 
Sec. 25. Separabiiity Cause. - If for any reason, any provision of this Act is
19 
declared unconstitutional or invalid, the other parts or provisions hereof which are not
20 
affected thereby shall continue to be in full force and effect.
21 
Sec. 26. Repeating Cause. - Sections 1 and 2 of Executive Order No. 172,
22 
"Creating the Energy Regulatory Board" are hereby repealed. Sections 38, 39, 40, 41
23 
and 42 of Republic Act No. 9136, otherwise known as the "Electric Power Industry
24 
Reform Act of 2001", are hereby amended accordingly. All laws, decrees, orders, rules
25 
and regulations or parts thereof which are inconsistent with or contrary to the
26 
provisions of this Act are hereby repealed or amended accordingly.
27 
Sec. 27. Effectivity. - This Act shall take effect fifteen (15) days following its
28 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
21