Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

7)
HOUSE BILL NO. _ 2847

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Republic Act No. 9136, otherwise known as the “Electric Power
Industry Reform Act of 2001” clearly stated that the obligations of
generating companies and energy resource developers to communities
hosting energy generating facilities and/or energy resource developers
as defined under Chapter 11, Sections 289 to 294 of the Local
Government Code and Section 5(i) of Republic Act No. 7638 and their
implementing rules and regulations and applicable orders and circulars
consistent with this Act shall continue: Provided, further, That the
obligations mandated under Chapter 11, Section 291 of Republic Act
No. 7160, shall apply to privately-owned corporations or entities
utilizing the national wealth of the locality.

Moreover, the aforesaid law so states: To ensure the effective
implementation of the reduction in cost of electricity in the
communities where the source of energy is located, the mechanics and
procedures prescribed in the Department of the Interior and Local
Government (DILG) - DOE Circulars No. 95-01 and 98-01 dated
October 31, 1995 and September 30, 1998, respectively and other
issuances related thereto shall be pursued.

The aforesaid law, however, intends to mandate the direct
remittance of the aforesaid benefits to the host communities instead of
remitting them to the Department of Energy to assure that the said
benefits may be utilized immediately for their development and for the
introduction of improvements.

Through this measure, we will be able to facilitate the prompt
remittance of said benefits to the host communities in consonance with
the intention of all laws previously legislated.

In view of the foregoing, immediate passage of this bill is
earnestly sought. -

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Brno. __ 2847

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT
REQUIRING ALL INDEPENDENT POWER PRODUCERS,
GENERATION COMPANIES OR ENERGY RESOURCE DEVELOPERS
TO REMIT THE AMOUNT THEY ARE REQUIRED TO SET ASIDE AS
FINANCIAL BENEFIT DIRECTLY TO THE HOST COMMUNITIES

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

SECTION 1. All independent power producers, generation
companies or energy resource developers, whether publicly or
privately owned, shall remit directly to the local government units or
other host communities the benefits they are required to set aside as
financial benefit to host communities pursuant to Section 66 of
Republic Act No. 9136, otherwise known as the “Electric Power
Industry Reform Act of 2001”; as defined in Sections 289 to 294,
Chapter II of Republic Act No. 7160, otherwise known as the “Local
Government Code of 1991”; the benefits defined in Section 5(i) of
Republic Act No. 7638, otherwise known as the “Department of Energy
Act of 1992” and Rule 29 of Energy Regulation No. 1-94.

SEC. 2. The use of aforesaid amounts remitted by independent
power producers, generation companies or energy resource
developers to the host communities concerned shall remain subject to
the guidelines set by the Department of Energy.

SEC. 3. All laws, presidential decrees, executive orders, letters
of instruction, rules and regulations or parts thereof inconsistent with
the provisions of this Act are hereby repealed or modified accordingly.

SEC. 4. This Act shall take effect immediately upon its complete
publication in at least two (2) newspapers of general circulation.

Approved,