PIFTEENTH CONGRESS OF THE }
REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE of REPRESENTATIVES
House Bill No._3444

Introduced by: MA. THERESA B. BONOAN-DAVID
4% District, City of Manila

EXPLANATORY NOTE

This bill seeks to amend Section 10 of Republic Act 7832 by
removing the floor limit as to the lowering of the percentage rate of
the systems loss to be recovered by private electric utilities as well as
Rural electric cooperatives.

The primary concern of this bill is the fact that the cost of
electricity in the country has been growing uncontrollably causing
the ordinary family earning minimum wage and even below it to
increase its expense for electricity consumption and failed to allocate
the cost to other basic needs.

If the floor limit as to the percentage rate of the system loss
that the electric companies may pass upon the consumers is
removed, the Energy Regulatory Board will have a more flexible
opportunity to adjust the allowable percentage rate to be lower than
the stated rate of 9%.

This will be of great relief to all the consumers especially to
those living below poverty line, as the cost of electricity may even be
lowered to a more practicable and feasible amount.

It is with this view that immediate approval of this bill is
earnestly sought.

aw

ATTY. MA. THERESA B. BONOAN-DAVID
4a District, Manila


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE of REPRESENTATIVES
House Bill No. 3444

Introduced by: MA. THERESA B. BONOAN-DAVID
4% District, City of Manila

AN ACT AMENDING SECTION 10, REPUBLIC ACT 7832,
OTHERWISE KNOWN AS THE “ANTI-ELECTRICITY and
ELECTRIC TRANSMISSION LINE/MATERIALS PILFERAGE
ACT OF 1994

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

Section . 1. Section 10 of the Republic Act 7832 is hereby amended
to read as follows:

“SEC. 10. Rationalization of System Losses by Phasing out
Pilferage Losses as a Component Thereof. - There is hereby
established a cap on the recoverable rate of system losses
as follows:

(a) For private electric utilities:

i. Fourteen and a half percent (14 1/2%) at
the end of the first year following the
effectivity of this Act;

ii, Thirteen and one-fourth (13 1/4%) at the
end of the second year following the
effectivity of this Act

iii, Eleven and three-fourths percent (11 3/4%)
at the end of the third year following the
effectivity of this Act; and

iv. Nine and a half percent (9 1/2%) at the end
of the fourth year following the effectivity


Provided, That the ERB is hereby authorized to
determine at the end of the fourth year following the
effectivity of this Act, and as often as may be necessary
taking into account the viability of private electric utilities
and the interest and welfare of the consumers, whether
the caps herein or theretofore established shall be
reduced further, which may and can be lowered below
nine percent (9%) as the circumstances may warrant,
and accordingly fix the date of the effectivity of the new
caps:

Provided, further, That in the calculation of the system
loss, power sold by NPC or any other entity that supplies
power directly to the consumer and not through the
distribution system of the private electric utility shall not
be counted even if the billing for the said power is used
through the private electric utility.

The term “power sold by NPC or any other entity that
supplies electricity directly to a consumer” as used in the
preceding paragraph shall for purposes of this section be
deemed to be a sale directly to the consumer if: (1) the
point of metering by the NPC or any other utility is less
than one thousand (1,000) meters from the consumer, or
(2) the consumer's electric consumption is three percent
(3%) or more of the total load consumption of all the
customers of the utility, or (3) there is no other consumer
connected to the distribution line of the utility which
connects to the NPC or any other utility point of metering
to the consuming meter.

(b) For rural electric cooperatives:

i. Twenty-two percent (22%) at the end of the first
year following the effectivity of this Act;

ii, Twenty percent (20%) at the end of the second year
following the effectivity of this Act;

iii, Eighteen percent (18%) at the end of the third year
following the effectivity of this Act;

iv. Sixteen percent (16%) at the end of the fourth year
following the effectivity of this Act; and

v. Fourteen percent (14%) at the end of the third year
following the effectivity of this Act.


Provided, That the ERB is hereby authorized to
determine at the end of the fifth year following the
effectivity of this Act, and as often as is necessary, taking
into account the viability of rural electric cooperatives
and the interest and welfare of consumers, whether the
caps herein or theretofore established shall be reduced
further which may and can be lowered below nine
percent (9%) as the circumstances may warrant, and
accordingly fix the date of the effectivity of the new caps.

Provided, finally, That in any case nothing in this Act
shall impair the authority of the ERB to reduce or phase
out technical or design losses as a component of system
losses.

Section 2. Repealing Clause. — All acts, decrees, general orders,
letters of instruction, regulation and circulars, or parts thereof
inconsistent with any provision of this Act are hereby repealed or

modified accordingly.

Section 3. Separability Clause — If, for any cause, any part of this
Act is declared unconstitutional, the rest of the provisions shall

remain in force and effect.

Section 4. Effectivity. - This Act shall take effect after fiftenn (15)
days following its publication in two (2) newspapers of general

circulation.

Approved.