Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 2889

Introduced by Honorable Lord Allan Jay Q. Velasco

EXPLANATORY NOTE

Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of
2001, sought to re-structure the electric power industry by privatizing the Generation,
Transmission, Distribution, and Supply of the power sector. Distribution and transmission were
later declared as public utilities.

In line with the EPIRA, the Energy Regulatory Commission (ERC) was created as an independent,
quasi-judicial regulatory body, amending for that purpose the existing Energy Regulatory Board
(ERB) created under Executive Order No. 172, as amended.

ERC, as the country’s electric power regulator has a crucial role in ensuring consumer protection,
and in enhancing the competitive operation of the electricity market. An evaluation of the
governance structure of the ERC would show that the powers and functions of the Chairman of
the Commission and the Chief Executive Officer is lodged in one person. Experience shows that
practice does not foster a balance of power and accountability. Accountability and transparency in
the workings of the Commission should also be paramount in order to engender trust and integrity
among the industry players and the public.

Itis in this light that this measure is proposed. This bill aims to enhance and strengthen the existing
governance structure of the regulatory body, by providing (1) additional number, qualifications
and requirements for ERC Commissioners to ensure board efficiency and diversity; (2) creation of
three [3] Commission divisions, aside from the Commission en Bane, to ensure faster resolutions
of cases, applications, and promulgation of rules: (3) prohibitions and disqualification for ERC
Commissioners and their relatives to prevent conflicts of interest; (4) divestment of the CEO
functions from the Chairperson and lodging the same to the Executive Director of the ERC; (5)
provision for a People’s Counsel; (6) limited fiscal autonomy to augment the benefits of ERC
officers and staff; and (7) detailing a Code of Ethics for the Commissioners.

In view of the foregoing, this bill seeks to provide a more streamlined and stronger power regulator,
amending for that purpose, Republic Act No. 9136. otherwise known as the otherwise known as
the Electric Power Industry Reform Act (EPIRA) of 2001. For the foregoing reasons, the passage
of this bill is hereby sought.

HON. LORD ACLYAN JAY Q. VELASCO


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 2099

Introduced by Representative Lord Allan Jay Q. Velasco

AN ACT
STRENGTHENING THE ENERGY REGULATORY COMMISSION BY EXPANDING
AND STREAMLINING ITS BUREAUCRACY, UPGRADING EMPLOYEE SKILLS,
AUGMENTING BENEFITS, AND APPROPRIATING FUNDS THEREFOR

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

Congress assembled:
CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “Energy Regulatory
Commission Act.”

SEC. 2. Declaration of Policy. - The State recognizes the significant role of the
Energy Regulatory Commission in:

a

b)

Ensuring transparent and reasonable prices of electricity;

Protecting the consumers as they are affected by the rates and services of
electric utilities and other providers of electric power; and
°)

Promoting competition, encouraging market development, ensuring customer
choice, and penalizing abuse of market power in the restructured power
industry.

Towards this end, the State shall:

a) Establish a strong, independent, transparent, and accountable regulatory

body; and
b) Ensure the efficient and effective performance of the functions and mandates
of the regulatory body to enhance competitiveness in the electric power
industry.
CHAPTER II
ORGANIZATIONAL STRUCTURE


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SEC. 3. Section 38 of the Republic Act 9136 is hereby amended, to read as

follows:

SEC. 38. [Creation] STRENGTHENING/RECONSTITUTION of the Energy
Regulatory Commission. There is hereby created an independent, quasi-judicial
regulatory body to be named the Energy Regulatory Commission (ERC). [For-this

Order No-172_as-amended,is-hereby-abolished.] THE ENERGY REGULATORY
COMMISSION (ERC) IS HEREBY RECONSTITUTED. TOWARDS THIS END,
THE ERC SHALL BE EXCLUSIVELY RESPONSIBLE FOR THE REGULATION
OF THE ELECTRIC POWER AND ENERGY INDUSTRY AND SHALL ENJOY
LIMITED FISCAL AUTONOMY. ITS ANNUAL APPROVED BUDGET SHALL BE
AUTOMATICALLY AND REGULARLY RELEASED.

The Commission shall be composed of a [Chairman] CHAIRPERSON and
{four-{4)] EIGHT (8) members. [te] THE CHAIRPERSON SHALL be appointed by
the President of the Philippines AND SHALL SERVE A TERM CO-TERMINOUS
WITH THAT OF THE PRESIDENT. THE REST OF THE MEMBERS OF THE
COMMISSION SHALL BE APPOINTED BY THE PRESIDENT OF THE
PHILIPPINES FROM A SHORTLIST PROVIDED BY THE JOINT
CONGRESSIONAL ENERGY COMMISSION (JCEC). A SHORTLIST OF THREE
(3) NOMINEES PER POSITION SHALL BE CHOSEN BY THE PRESIDENT
ONLY FROM AMONG THOSE NOMINATED BY THE JCEC. The [Chairman]
CHAIRPERSON and the members of the Commission shall be natural-born
citizens and residents of the Philippines, persons of good moral character, at least
[thirty-five (35)] FORTY-FIVE (45) years of age, and of recognized competence in
any of the following fields: energy, law, economics, finance, commerce, or
engineering, with at LEAST [three-(3)] FIVE (5) years OF actual and distinguished
experience in their respective fields of expertise: Provided, That out of the [four{4)]
EIGHT (8) members of the Commission, at least [one-{4)] THREE (3) shall be [a
member] MEMBERS of the Philippine Bar INCLUDING THE CHAIRPERSON with
at least ten (10) years experience in the active practice of law, [and] AT LEAST
fone{4)} TWO (2) MEMBERS shall be a certified public [accountant}
ACCOUNTANTS with at least ten (10) years OF experience in THE active practice
OF ACCOUNTING; AT LEAST TWO (2) MEMBERS SHALL BE ENGINEERS
WITH AT LEAST FIVE (5) YEARS OF EXPERIENCE PREFERABLY IN POWER
SYSTEM ENGINEERING; AND AT LEAST ONE (1) MEMBER SHALL BE AN
ECONOMIST WITH AT LEAST FIVE (5) YEARS OF EXPERIENCE
PREFERABLY IN UTILITY ECONOMICS; PROVIDED, FURTHER, THAT AT
LEAST ONE (1) OF THE MEMBERS SHALL COME FROM THE CONSUMER
SECTOR.


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All members of the Commission shall have a term of seven (7) years: Provided,
That for the first appointees, THE CHAIRPERSON SHALL HAVE A CO-
TERMINOUS TERM WITH THE PRESIDENT OF THE PHILIPPINES; PROVIDED,
THAT FOR THE FIRST TWO (2) APPOINTED MEMBERS, WHO SHALL SERVE
FOR SEVEN (7) YEARS, THE NEXT THREE (3) APPOINTED MEMBERS SHALL
SERVE FOR FIVE (5) YEARS, AND THE LAST THREE (3) APPOINTED
MEMBERS SHALL SERVE FOR A TERM OF THREE (3) YEARS, [the-Chairman

hall-hold_office-f (@)-yeare,-two-(2' bers-shall-hold-office for five 45}

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 serve for more than seven (7) years in the
Commission .

The {Chairman} CHAIRPERSON and members of the Commission shall
assume office of the beginning of their terms: Provided, That, if upon the effectivity
of this Act, the Commission has not been constituted and the new staffing pattern
and plantilla positions have not been approved and filled-up, the current Board and
existing personnel of [ERB} ERC shall continue to hold office.

The existing personnel of the [ERB} ERC, if qualified, shall be given preference
in the filling up of plantilla positions created in the ERC, subject to existing civil
service 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] CHAIRPERSON and members of the Commission or any of
their relatives within the fourth civil degree of consanguinity or affinity, WHETHER
SUCH PERSONAL RELATIONS ARE legitimate, for] common law, OR
OTHERWISE, 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 [transmitting,-generating,-supplying-oF distributing any form of energy
anchmusttherefere, divect through sele-or-lagelcieposition-of any-snd-allinierasts
the-energy-sector-up ption-of office] GENERATING, TRANSMITTING,

DISTRIBUTING OR SUPPLYING ELECTRICITY. UPON THE ASSUMPTION BY
THE CHAIRPERSON AND THE MEMBERS OF THE ERC OF THEIR

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RESPECTIVE POSITIONS, THE CHAIRMAN 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.

HThe-p at least three (3 bers-of the C hall-constitute
q and_the majority vote of two-(2) bs ting where-a-q

d —orotheract of the C jon-in—the-exercise—of-its quasi-judicial
functions: Provided,That in fixing rates-and tariffs,-an-affirmative-vote-of-three-(3)

THE COMMISSION SHALL BE DIVIDED INTO THREE (3) DIVISIONS,
WITH THREE (3) MEMBERS EACH, INCLUDING THE CHAIRPERSON. EACH
DIVISION MUST HAVE AT LEAST ONE (1) MEMBER WHO IS A LAWYER AND
ONE (1) MEMBER WHO IS AN ENGINEER OR ECONOMIST. THE PRESENCE
OF AT LEAST TWO (2) OF THE (3) MEMBERS OF THE 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 NECESSARY FOR THE ADOPTION OF ANY RULE, RULING, ORDER,
RESOLUTION, DECISION OR OTHER ACTS OF THE COMMISSION.

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 REST OF THE MEMBERS,
CONSTITUTING A QUORUM, SHALL SELECT 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 QUASI-LEGISLATIVE POWER,
RULES, OR REGULATIONS;

CASES INVOLVING THE NATIONAL TRANSMISSION CORPORATION
(TRANSCO) OR ITS AUTHORIZED CONCESSIONAIRE WHICH
OPERATES THE TRANSMISSION NETWORK;

CASES INVOLVING CONTRACTS WORTH MORE THAN FIVE
HUNDRED MILLION PESOS (PHP500,000,000.00);

PRIVATE DISTRIBUTION UTILITIES;

CASES PREVIOUSLY HANDLED BY THE ERC DIVISION IN WHICH NO
QUORUM OR VALID DECISION WAS REACHED; AND

b)

°)

d
e)


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f) OTHER CASES AS MAY BE DESIGNATED BY THE COMMISSION EN
BANC ITSELF.

THE CHAIRMAN AND THE MEMBERS OF THE ERC SHALL CONFORM TO THE
FOLLOWING CODE OF ETHICS:

(1) AVOID IMPROPRIETY AND THE APPEARANCE OF
IMPROPRIETY IN ALL ACTIVITIES;

(2) PERFORM ALL DUTIES WITH UTMOST IMPARTIALITY AND
DILIGENCE;
(3) MUST BEHAVE AT ALL TIMES AS TO PROMOTE PUBLIC

CONFIDENCE IN THE ERC AND AVOID OFF-THE-RECORD
CONVERSATIONS BETWEEN ANY MEMBER OF THE ERC AND PARTIES
THERETO, INCLUDING ANY STAFF ACTING AS A PARTY, REGARDING
THE MERITS OR ANY FACT IN ISSUE OF ANY MATTER PENDING
BEFORE THE ERC;

(4) ABSTAIN FROM PUBLICLY EXPRESSING HIS OR HER
PERSONAL VIEWS ON THE MERITS OF A MATTER PENDING BEFORE
THE ERC AND REQUIRE SIMILAR ABSTENTION ON THE PART OF ERC.
PERSONNEL SUBJECT TO HIS OR HER DIRECTION AND CONTROL;

(5) INITIATE APPROPRIATE DISCIPLINARY MEASURES AGAINST
ERC PERSONNEL FOR UNPROFESSIONAL CONDUCT;

(6) INHIBIT HIMSELF OR HERSELF FROM PROCEEDINGS IN
WHICH HIS OR HER IMPARTIALITY MIGHT BE REASONABLY
QUESTIONED;

(7) DISCLOSE HIS OR HER PERSONAL AND FIDUCIARY
INTERESTS AND MAKE REASONABLE EFFORTS TO DISCLOSE THE
PERSONAL FINANCIAL INTERESTS OF HIS OR HER SPOUSE AND
CHILDREN;

(8) ACTIVITIES OUTSIDE WORK SUCH AS ACADEMIC LECTURES
WITH HONORARIA SHALL BE DISCLOSED ANNUALLY. SUCH
DISCLOSURE STATEMENT SHALL BE FILED WITH THE EXECUTIVE

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DIRECTOR OF THE ERC AND SHALL BE OPEN TO INSPECTION BY THE

2 PUBLIC DURING THE NORMAL BUSINESS HOURS DURING THE
3 TENURE OF THE CHAIRMAN OR MEMBER OF THE ERC. THE
4 CHAIRMAN OR ANY MEMBER OF THE PPRC SHALL NOT RESUME
5 THEIR DUTIES UNTIL HE OR SHE SUBMITS SAID DISCLOSURE
6 STATEMENT TO THE EXECUTIVE DIRECTOR OF THE ERC.

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8 (9) REFRAIN FROM SOLICITATION OF FUNDS FOR ANY
9 POLITICAL, EDUCATIONAL, RELIGIOUS, CHARITABLE, OR CIVIC
10 PURPOSES, ALTHOUGH HE OR SHE MAY BE AN OFFICER, DIRECTOR,
11 OR TRUSTEE OF SUCH ORGANIZATIONS;

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13 (10) REFRAIN FROM ANY FINANCIAL OR BUSINESS DEALINGS
14 WHICH MAY CAST DOUBT ON THE IMPARTIALITY OF THE PPRC
15 CHAIRMAN OR MEMBERS BY THE PUBLIC;

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7 (11) IN EXERCISING THEIR QUASI-JUDICIAL FUNCTION, THE
18 CHAIRMAN AND MEMBERS OF THE ERC SHALL ADHERE TO THE
19 CANONS OF JUDICIAL CONDUCT; AND

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21 (12) CONFORM TO ANY SUCH ADDITIONAL RULES AS THE ERC
22 MAY PRESCRIBE.

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24 ANY VIOLATION OF THE ABOVE-MENTIONED CODE OF ETHICS SHALL
25 CONSTITUTE CAUSE FOR REMOVAL FROM OFFICE BY THE OFFICE OF
26 THE PRESIDENT OF THE PHILIPPINES, WITHOUT PREJUDICE TO ANY
27 OTHER PENALITIES UNDER ALL APPLICABLE LAWS.

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29 AFTER TERMINATING EMPLOYMENT OR SERVICE WITH ERC, THE
30 CHAIRMAN AND MEMBERS OF THE PPRC, EXECUTIVE DIRECTOR,
31 SERVICE OR OFFICE DIRECTORS, OR ITS EQUIVALENT, WHO ARE
32 APPOINTED, OR EMPLOYED UNDER ERC, IS PROHIBITED FROM
33 ACCEPTING EMPLOYMENT WITH ANY REGULATED ENTITY FOR A
34 PERIOD OF THREE (3) YEARS, AND ALL MEMBERS OF THE ERC ARE
35 PROHIBITED FROM APPEARING BEFORE THE ERC ON BEHALF OF ANY
36 REGULATED ENTITY FOR A PERIOD OF THREE (3) YEARS AFTER SAID
37 TERMINATION OF EMPLOYMENT.”

38 SEC. 4. Expansion. - The existing organizational structure of the Energy

39 Regulatory Commission (ERC) is hereby reorganized by creating the following:


a) Office of the General Counsel and Secretariat, directly reporting to the
Commission en Banc;

b) Internal Audit Unit, directly reporting to the Commission en Banc; and

c) Six (6) line services: (a) Regulatory Operations Service; (b) Market
Operations Service; (c) Consumer Affairs Service; (d) Legal Service; (e)
Planning and Public Information Service; and (f) Finance and Administrative
Service.

The Commission en Banc may create oversight committees or services as may
be deemed necessary and consistent with the functions and mandates of the ERC.
To achieve the goals of this Act, the Commission, as an independent regulatory
body, is hereby authorized to provide for its reorganization, to streamline its structure
and operations, upgrade its human resource compliment and enable the same to
perform its functions more efficiently and effectively and exercise its power under this
Act and under Republic Act No. 9136, otherwise known as “Electric Power Industry
Reform Act of 2001" (EPIRA)
All positions of the ERC shall be governed by a compensation and position
classification system and qualification standards approved by the Commission en Banc
based on comprehensive job analysis and audit of actual duties and personal
responsibilities. Towards this end, the Commission shall be exempt from laws, rules,
and regulations on compensation, position classification and qualification standards
The Commission shall, however, endeavor to make its system conform as closely as
possible with the principles under the Compensation and Position Classification Act of
1989 otherwise known as Republic Act No. 6758, as amended.
SEC. 5. Commission en Banc. ~ In addition to the functions enumerated in
Republic Act No. 9136, Republic Act No. 9513, otherwise known as the “Renewable
Energy Act of 2008,” and other relevant laws, all the members of the Commission shall:
a) Exercise all quasi-judicial and quasi-legislative functions in furtherance of the
ERC’s mandate under Republic Act No. 9136;

b) Act on the selection and appointment of all ERC personnel: Provided, That
the appointment of ERC personnel with a rank lower than a Division Chief
may be delegated to the Chairperson;

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Approve the internal rules, organizational structure, and operational strategy
of the ERC; and

d) Act as the Head of Procuring Entity (HOPE) and exercise all duties and
powers as stated in Republic Act No. 9184, otherwise known as the
“Government Procurement Reform Act:” Provided, That the Commission may

delegate its functions under the said Act.


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SEC. 6. Duties and Responsibilities of the Chairperson. — The Chairperson

as head of the Commission en Banc shall have the following duties and responsibilities:

a) Lead and oversee the implementation of the Commission’s mandate
under the EPIRA in accordance with the Commission approved internal
rules, organizational and operational strategy;

b) Ensure good governance policies, practices, rules and procedures that
promote the highest standards of integrity, competence, and
transparency;

°)

Enforce adherence to the Commission's approved internal rules;

d) Act on the appointment of ERC personnel with the rank of Division Chief
and below;

e) Act as the official representative of the ERC to promote collaborative
relationships and open communication between the Commission and the
following: (1) general public, (2) executive and legislative government
agencies, (3) intemational organizations or agencies; and (4) industry
stakeholders.

f) Preside over meetings of the Commission: Provided, That the
Chairperson shall have the right to vote on all matters, issues or case
pending before the Commission;

g) Determine the date, time and location of the regular and special
Commission meetings and prepare the agenda for the meeting with the
consensus of all the members of the Commission;

h) Perform such other functions as may be provided by law.

SEC. 7. Executive Director. —- The Executive Director shall be a lawyer with at

least ten

(10) years of active practice of law with at least five (5)-year experience in

management and administration.
The Executive Director shall act as the Commission's Chief Executive Officer

(CEO) with the following duties and responsibilities:

al

b)

°)

d)

Oversee the daily operations of the ERC and ensure the smooth functioning
of all ERC processes;
Provide the Commission with periodic updates on the day-to-day operations
of the ERC towards the achievement of its target objectives;
Evaluate and ensure compliance of the line services and all ERC employees
to the Commission approved periodic performance targets, annual operating
plan and internal rules; and
Perform such other functions related to foregoing or as may be assigned by
the Commission en Banc.

CHAPTER Il


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COMPENSATION STRUCTURE AND OTHER EMOLUMENTS
SEC. 8. Section 39 of the Electric Power Industry Reform Act (EPIRA) of 2001 is
hereby amended to read as follows:
“SEC. 39. ADJUSTED Compensation STRUCTURE and Other Emoluments for
ERC Personnel. - The compensation and other emoluments for the [Chairman-and
members-of- the] Commission and [the] ERC personnel shall be exempted from the
coverage of Republic Act No. 6758, otherwise known as the “Salary Standardization

Act’, AS AMENDED BY EXECUTIVE ORDER NO. 201, SERIES OF 2016. [Fortis

The [Chairman] CHAIRPERSON and members of the Commission shall [initially]
be entitled to the same salaries, allowances and benefits as those of the Presiding
Justice and Associate Justices of the [Supreme—Cour] COURT OF APPEALS,
respectively. The [Chairman] CHAIRPERSON and the members of the Commission
shall, upon completion of their term or upon becoming eligible for retirement under
existing laws, be entitled to the same retirement benefits and the privileges provided for
the Presiding Justice and Associate Justices of the [Supreme—Court] COURT OF
APPEALS, respectively.”

THE COMPENSATION SCHEDULE OF THE ERC PERSONNEL SHALL BE
COMPETITIVE WITH THE SALARY RANGE OF OTHER REGULATORY AGENCIES,
AND THE ELECTRIC POWER INDUSTRY STAKEHOLDERS. FOR THIS PURPOSE,
THE COMMISSION EN BANC SHALL, SUBJECT TO THE APPROVAL OF THE
PRESIDENT OF THE PHILIPPINES, ADJUST THE COMPENSATION SCHEDULE
AND BENEFITS OF ERC PERSONNEL ONCE EVERY TWO (2) YEARS TO ENSURE
THAT THE SAME IS COMPARABLE WITH THE COMPENSATION PACKAGE OF
OTHER REGULATORY AGENCIES, AND THE ELECTRIC POWER INDUSTRY
STAKEHOLDERS.

EVERY TWO (2) YEARS FROM THE LAST COMPENSATION SCHEDULE
ADJUSTMENT, THE ERC SHALL CONDUCT AN ASSESSMENT ON THE
COMPETITIVENESS OF THE LEVEL OF COMPENSATION OF THE ERC
PERSONNEL AGAINST THOSE OF THE EMPLOYEES OF THE STAKEHOLDERS
AND REGULATORS OF OTHER JURISDICTIONS. THE ASSESSMENT SHALL
CONSIDER ANNUAL MERIT REVIEW OR INCREASES BASED ON PRODUCTIVITY
AND EFFICIENCY,


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SEC. 9. Section 40 of the Electric Power Industry Reform Act (EPIRA) of 2001 is
hereby amended to read as follows:
“SEC. 40. Enhancement of Technical Competence. — [The-ERG-shall-establish

e for-it ‘

9 g-prog taff_for_the-purpose-of_enhancing_the-technical

pet f-the-ERC-in-the followi -evaluation-of technical-pert id
toring-of compl th

¢ [ oe d- perf tandarde,perk based

Hotbet agendas ati tal standards-and-such-oth will enable-the

ERC -to-adequately perform-its-duties-and-functions.] THE TECHNICAL COMPETENCE
OF THE ERC PERSONNEL SHALL BE BENCHMARKED AGAINST INTERNATIONAL
BEST PRACTICES. IN VIEW THEREOF, THE ERC SHALL ESTABLISH A RIGOROUS
AND SUSTAINABLE TRAINING PROGRAM THAT WILL ALLOW ITS STAFF TO
ACQUIRE THE NECESSARY KNOWLEDGE AND SKILLS AT PAR WITH THE
PERSONNEL OF REGULATORS FROM OTHER JURISDICTIONS AND
ECONOMIES. :

FOR THIS PURPOSE, THE ERC SHALL ESTABLISH A UNIT WITHIN ITS
STRUCTURE THAT SHALL DESIGN A STANDARDIZED TRAINING AND
DEVELOPMENT PROGRAM AND FACILITATE THE REGULAR CONDUCT OF
NECESSARY TRAINING FOR NEW AND INCUMBENT ERC PERSONNEL.

THE ERC SHALL ALLOT NO LESS THAN FIFTEEN PERCENT (15%) OF ITS
TOTAL ANNUAL APPROVED BUDGET FOR THE TRAINING AND UPGRADING OF
SKILLS OF ITS PERSONNEL.

THE ERC 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. 10. 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. 11. 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;

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c) A provident fund, which shall consist of contributions made by both the ERC
and by its employees to a common fund for the payment of benefits to
employees or their heirs; and

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.

CHAPTER IV
MISCELLANEOUS PROVISIONS

SEC. 12. Section 41 of the Electric Power Industry Reform Act (EPIRA) of 2001
is hereby amended to read as follows:

“SEC. 41. PROTECTION AND Promotion of Consumer Interests. — [Fhe
ERC-shall_hand ts—and. the-adequate—promotion-of
eonsumer—interests.}| THE ERC SHALL ADDRESS AND PROVIDE TIMELY
RESOLUTIONS TO CONSUMER COMPLAINTS AND ENSURE ADEQUATE
PROTECTION OF CONSUMER INTERESTS THROUGH THE ADOPTION OF
POLICIES THAT FOSTER GOALS SUCH AS PUBLIC ACCESS TO THE ERC AND
ITS PROCESSES, CONSUMER EDUCATION, AND EFFICIENT UTILIZATION OF
ERC RESOURCES.

FOR THIS PURPOSE, THE ERC SHALL REGULARLY CONDUCT
TRAININGS FOR THE EFFICIENT HANDLING OF CONSUMER COMPLAINTS BY
THE DISTRIBUTION UTILITIES’ CONSUMER WELFARE DESK (CWD). THE ERC
SHALL ALLOCATE AN ANNUAL BUDGET FOR THIS PURPOSE.

SEC. 13. Limited Fiscal Autonomy. - In addition to its yearly appropriation

authorized in the General Appropriations Act (GAA), the Commission shall be allowed
to use for the following year thirty percent (30%) of its revenues generated from the
collection of fees, assessments, licenses, fines, penalties and other charges.
The said amount shall be utilized in the following manner:

a) Ten percent (10%) of such income shall be used to augment ERC’s
Capital Outlay (CO) Budget;
Fifteen percent (15%) of such income shall be used to augment the
ERC’s Maintenance and Other Operating Expenses (MOOE) Budget;

b)

and
°)

Seventy-five percent (75%) of such income shall be used to augment the
ERC’s Personnel Service (PS) Budget intended to augment the benefits
of the ERC Officers, personnel and staff except for the Chairperson and
members of the Commission

In case the ERC fails to fully utilize the revenues mentioned herein, the
unutilized amount shall revert to the National Treasury.

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SEC. 14. Public Disclosure and Transparency. — The Commission shall
submit and make available to the public, within the prescribed period, reports pertinent
to compliance submissions, reports, certificates, orders, or decisions, except those
designated as confidential submissions affecting trade secrets or the like, made or
issued in relation to industry players in the generation, transmission, distribution, and
supply sectors, such as resolutions, orders, decisions, certificates of compliance,
certificates of registrations, retail rates of distribution utilities, system loss data of
distribution utilities, system and capital infrastructure, consumer complaints,
applications, petitions, and other similar public documents to an Electronic Disclosure
and Data Access system (EDDA) repository. As used in this Act, EDDA refers to the
system for disclosure of energy industry information for public access to ensure
transparency and consumer protection using electronic database and communications
system that shall start operating for within three (3) years from the effectivity of this Act.

SEC. 15. People’s Counsel. — There is hereby created an office to be known as
‘the Office of the People's Counsel under the administrative supervision of the Secretary
of Trade and Industry. The office of the People's Counsel shall have such number of
employees as may be necessary to perform the functions hereinafter specified. The
office of the People's Counsel shall be appointed by the President of the Philippines.
The employees of the office of the People's Counsel shall be appointed by the
Secretary of Trade and Industry upon recommendation of the office of the People's
Counsel.

The office of the People's Counsel and its employees, shall not, during their
continuance in office, intervene directly or indirectly in the management or control of, or
be financially interested directly or indirectly in any transmission and distribution utility,
generation company, and supplier as defined in Republic Act No. 9136.

It shall be the duty of the office of the People's Counsel to represent and appear
for the public before the ERC in every case involving consumer interests. In all rate
cases initiated before it, the ERC shall direct the applicant or petitioner to furnish the
office of the People’s Counsel with copies of its application including its annexes.
Likewise, the ERC shall furnish the office of the People’s Counsel of all its Orders in the
said rate cases.

SEC. 16. Franking Privilege. — All official mail matters and telegrams of the
ERC addressed for delivery within the Philippines shall be received, transmitted, and
delivered free of charge: Provided, That such mail matters shall not exceed two (2)
kilograms.

CHAPTER V
FINAL PROVISIONS

SEC. 17. Section 42 of the Electric Power Industry Reform Act (EPIRA) of 2001

is hereby amended to read as follows:

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“SEC. 42. [Budget-of the ERC.—Th of One-hundred fifty million-pes

‘eperation_of the ERC—Any_bal hall-initi ed_from_the-Office-of th

President-of the Philippines Thereafter-th get of the ERC-shall-be included
in-the-regular-or special appropriations] APPROPRIATIONS. ~ SUCH SUMS AS MAY
BE NECESSARY FOR THE SUCCESSFUL IMPLEMENTATION OF THIS ACT SHALL
BE TAKEN FROM THE CURRENT FISCAL YEAR APPROPRIATION OF THE ERC.
THEREAFTER, THE AMOUNT NEEDED FOR THE CONTINUOUS
IMPLEMENTATION OF THIS ACT SHALL BE INCLUDED IN THE ANNUAL GENERAL
APPROPRIATIONS ACT.”

SEC. 18. Separability Clause. — If for any reason, any provision of this Act is

declared unconstitutional or invalid, the other parts or provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SEC. 19. Repealing Clause. — Sections 1 and 2 of Executive Order No. 172,
“Creating the Energy Regulatory Board” are hereby repealed. Sections 38, 39, 40, 41
and 42 of Republic Act No. 9136, otherwise known as the ‘Electric Power Industry
Reform Act of 2001,” ate hereby amended accordingly.

All laws, decrees, orders, rules and regulations or parts thereof which are
inconsistent with or contrary to the provisions of this Act are hereby repealed or
amended accordingly.

SEC. 20. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in a newspaper of general circulation

Approved,

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