EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
c( lljc s u r - t . i r i ’
SENATE
S. No. 
590
T9 
JUL 17 P6 «0
It'. . - .
Introduced by Senator Ralph G. Recto
AN ACT
PROTECTING CONSUMERS FROM UNREASONABLE FEE INCREASES 
BY PROVIDING FOR A CONSUMER GROUP REPRESENTATION IN  THE 
GOVERNING 
BOARDS OF GOVERNMENT REGULATORY BODIES, 
AMENDING FOR THE PURPOSE THEIR RESPECTIVE CHARTERS, AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippine Statistics Authority reported that the Year-on-Year 
inflation rates in 2018 picked up by 5.2 percent from 2.9 percent in 2017.1 
The Philippines' full-year average inflation rate in 2018 is above the 
government's target range of 3 percent ± 1 .0  percentage point for the year.1 2 
Contributing to the upward movement are the rising world oil prices and other 
factors such as the effect of the Tax Reform Law on the price of petroleum 
products and the weakening peso.3
The public helplessly watch by as a succession of increases in the 
prices of goods and services relentlessly devour what is left of their 
purchasing power. It is now more expensive to travel by public transportation 
as fare rates are up in buses, taxis, and even commuter rail. Plying our toll
1 Philippine Statistics Authority. Summary Inflation Report Consumer Price Index (2012=100): 
May 
2019. 
https://p5a.qov.ph/statistics/survev/price/sum m arv-inflation-report-consum er- 
price-index-2012100-mav-2019 (Accessed July 1, 2019)
2 Inflation averages 5.2%  in 2018: BSP. https://www .pna.aov.ph/articles/1059321. (Accessed 
July 1, 2019)
3 
FAST 
FACTS: 
Philippine 
inflation 
rate 
over 
the 
years.
https://www.rappler.com /newsbreak/fast-facts/213604-thinas-to-know-philippine-inflation- 
over-the-vears. (Accessed July 1, 2019)


roads had become almost unaffordable, while pump prices continue to 
fluctuate. Our phone, water and electric bills also steadily increase.
All of these unfold almost at the same time, as the Filipino consumer 
now turns to the government for relief. Unfortunately, this upsurge in the cost 
of basic necessities had been approved by government regulatory bodies 
despite heavy opposition from the public.
This fact tells us that the opinion of the public, as consumers and end- 
users of products and services, do not weigh heavily on public policy when 
the opposite should be true.
No 
less than the Philippine Constitution 
mandates that public 
participation, in the interest of transparency and effective governance, shall 
be promoted at all levels of social, political, and economic decision-making.
Furthermore, it is the duty of the State to provide for mechanisms in 
which the sectors concerned can actively participate, in particular, in the 
regulatory affairs of government.
Unfortunately, up to this day, a number of charters creating various 
government regulatory bodies -  especially those concerned with determining 
rates of utilities, public transport, etc. -  do not contain any provision of 
increasing public participation in their decision-making process.
As a result, numerous policy decisions in the past have been approved 
either without prior consultation from stakeholders or without full disclosure 
of its details in public forums, thereby compromising the ideals of participative 
policy-making and transparency.
This bill seeks to address all that.


Specifically, this measure aims to provide for the institutionalization of 
the participatory mechanisms for stakeholders by including at least one (1) 
representative coming from consumer groups belonging to the sector being 
regulated by the government regulatory body concerned, amending the 
charters creating the following regulatory bodies:
1. Land Transportation and Franchising Regulatory Board;
2. Toll Regulatory Board;
3. Energy Regulatory Commission;
4. Manila Waterworks and Sewerage System;
5. Local Water Utilities Administration; and
6. National Telecommunications Commission.
It calls for the creation of the position of Consumer Group 
Representative, who will sit on the Governing Boards of these regulatory 
bodies.
Once this bill is enacted into law, the public as a consumer would be 
well-represented in the Governing Boards of these regulatory bodies when 
they formulate public policy, particularly with regard to the approval of rate 
increases in the sector they regulate.
The bill also aims to prevent malicious activities and grave abuse of 
discretion committed by those who sit on the affected regulatory bodies 
because they will no longer be left unchecked as representatives of sectors 
concerned will have direct participation over decision-making affairs at the top 
level.
In view of the foregoing, the passage of this bill is earnestly sought.
mjma
PH G


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 
590
*19 JUL 17 P6 «0
Introduced by Senator Ralph G. Rect* l 1o'“Lh
AN ACT
PROTECTING CONSUMERS FROM UNREASONABLE FEE INCREASES 
BY PROVIDING FOR A CONSUMER GROUP REPRESENTATION IN  THE 
GOVERNING 
BOARDS OF GOVERNMENT REGULATORY BODIES, 
AMENDING FOR THE PURPOSE THEIR RESPECTIVE CHARTERS, AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines 
in Congress assembled:
1 
Section 1. 
Title. -  This Act shall be known as "Consumer Group
2 
Representation in Regulatory Bodies Act."
3 
Sec. 2. 
Declaration o f Policy. 
-  
Pursuant to the constitutional
4 
mandate that the right of the people and their organizations to effective and
5 
reasonable participation at all levels of social, political, and economic decision-
6 
making shall not be abridged, and the State shall, by law, facilitate the
7 
establishment of adequate consultation mechanisms, the State shall:
8 
a.) prevent the concentration of power and information in a few
9 
persons or government organizations;
10 
b.) adopt and implement a policy of full public disclosure of all its
11 
transactions 
involving 
public 
interest 
thereby 
promoting
12 
transparency and accountability; and
13 
c.) ensure the protection and advancement of consumer welfare by
14 
mandating the inclusion of consumer group representatives in the
15 
Governing Boards of government regulatory bodies.
16 
Sec. 3. 
Consumer Group. -  For purposes of this Act, a consumer
17 
group shall refer to a representative organization, registered under the


1 
Securities and Exchange Commission, which has been established and
2 
organized to cater to a national constituency, and whose mandate includes
3 
the protection of the interests and rights of consumers in a specific sector
4 
that is being regulated by a government regulatory body.
5 
Sec. 4. 
Coverage. -  The Governing Boards of the following
6 
government regulatory bodies shall include at least one (1) member who shall
7 
represent the consumer group belonging to the sector being regulated by the
8 
government regulatory body concerned:
9 
a. Land Transportation and Franchising Regulatory Board, created by
10 
Executive Order No. 292;
11 
b. Toll Regulatory Board, created by Presidential Decree No. 1112;
12 
c. Energy Regulatory Commission, created by Republic Act No. 9136;
13 
d. 
Manila Waterworks and Sewerage System, created by Executive
14 
Order No. 1036;
15 
e. Local Water Utilities Administration, created by Presidential Decree
16 
No. 198, as amended; and
17 
f. National Telecommunications Commission, created by Executive
18 
Order No. 546.
19 
Such 
member 
of 
the 
respective 
governing 
boards 
of 
the
20 
aforementioned government regulatory bodies shall be called the Consumer
21 
Group Representative.
22 
The Consumer Group Representative shall perform the same functions,
23 
shall have the same voting rights, shall be paid the same salaries,
24 
remunerations and emoluments, and enjoy the same privileges as those
25 
enjoyed by the other members of the Governing Board of the government
26 
regulatory authority concerned.
27 
Sec. 5. Qualifications o f Consumer Group Representative. -  The
28 
Consumer Group Representative to be appointed should be a natural born
29 
citizen of the Philippines, at least thirty (30) years of age, able to read and
30 
write, a bona fide member of the Consumer Group which the appointee seeks
31 
to represent for at least two (2) years prior to the appointment, and has


1 
never been convicted of any administrative, civil or criminal offense involving
2 
moral turpitude.
3 
The Consumer Group Representative should also have at least five (5)
4 
years of known advocacy in the consumer sector the appointee represents.
5 
If, at any time during the appointment, the Consumer Group
6 
Representative ceases to be a bona fide member of the respective consumer
7 
group through expulsion, resignation, or any manner of removal sanctioned
8 
by its organizational by-laws, the position of Consumer Group Representative
9 
shall automatically be declared vacant and shall be filled up accordingly by
10 
initiating the appointment process as herein provided.
11 
Sec. 6. 
Term o f Office o f the Consumer Group Representative. -  The
12 
term of office of the Consumer Group Representative shall be two (2) years:
13 
Provided, That, upon the expiration of the term, a member of the consumer
14 
group shall serve until a successor shall have been appointed and qualified:
15 
Provided, further, That an appointment to fill the vacancy that arises prior to
16 
the expiration of the term of the Consumer Group Representative shall only
17 
be for the unexpired portion of such term: Provided, finally. That no member
18 
of the Consumer Group shall be appointed for more than two (2) consecutive
19 
or partial terms.
20 
Sec. 7. Appointing Authority. -  The President of the Republic of the
21 
Philippines shall appoint the Consumer Group Representative subject to the
22 
qualifications as herein provided, and to the limitations and prohibitions under
23 
existing laws and statutes.
24 
Sec. 8. Implementing Rules and Regulations. -  Within sixty (60) days
25 
after the effectivity of this Act, the Department of Budget and Management
26 
(DBM), 
in 
coordination with the government regulatory agencies as
27 
enumerated under Section 4 of this Act shall formulate the rules and
28 
regulations to effectively implement the provisions of this Act.
29 
Sec. 9. Separability Clause. -  If any portion or provision of this Act is
30 
declared unconstitutional, the remainder of this Act or any provisions not
31 
affected thereby shall remain in force and effect.


1 
Sec. 10. Repealing Clause. -  Any law, presidential decree or issuance,
2 
executive order, letter of instruction, rule or regulation inconsistent with the
3 
provisions of this Act is hereby repealed or modified accordingly.
4 
Sec. 11. Effectivity. -  This Act shall take effect fifteen (15) days
5 
following its complete publication in two (2) newspapers of general circulation
6 
or in the Official Gazette.
Approved,