Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. __________ 
___________________________________________________________________________ 
Introduced by 
PHILRECA Party-List Representative Presley C. De Jesus, 
APEC Party-List Representative Sergio C. Dagooc, 
___________________________________________________________________________ 
EXPLANATORY NOTE 
The Constitution guarantees the non-impairment of contractual 
obligations in order to safeguard the integrity of contracts against 
unwarranted interference by the State.1 Section 10 of the Bill of Rights 
provides that no law impairing obligations of contracts shall be passed. 
However, the Supreme Court held in numerous cases and reiterated in the 
case of SURNECO vs. ERC that “it has long been settled that police power 
legislation, adopted by the State to promote the health, morals, peace, 
education, good order, safety, and general welfare of the people prevail not 
only over future contracts but even over those already in existence, for all 
private contracts must yield to the superior and legitimate measures taken by 
the State to promote public welfare.2” 
The financial hardships of millions of Filipinos may be triggered by the 
contractual obligation of paying utility bills under trying times and difficult 
situations. There will be economic and social repercussions caused by a 
prolonged state of calamity. This is one of the learnings from the pandemic 
and calamities that our country has faced and hurdled.  
It is the sacrosanct responsibility of the state to uphold and maintain 
the general welfare of its people and to give them speedy assistance, both 
economically and socially, after the occurrence of natural or man-made 
calamities, including pandemics. 
1 Golden Way Merchandising Corporation vs. Equitable PCI Bank, G.R. No. 195540, March 13, 2013. 
2 Surigao del Norte Electric Cooperative vs. Energy Regulatory Commission, G.R. No. 183626, 
October 4, 2010. 
August 9, 2022
5:45 pm
3433


 
This measure seeks to provide a moratorium on all electric, water and 
telephone bills during the entire duration of a state of calamity. This measure 
also provides for an installment scheme on all amounts which fell due during 
the moratorium period in order to promote social justice and ensure the 
economic security of the people.  
 
In view of the foregoing, the passage of this bill is earnestly sought. 
  
 
 
  
REP. PRESLEY C. DE JESUS 
PHILRECA Party-List 
  
  
 
 
REP. SERGIO C. DAGOOC 
APEC Party-List 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. __________ 
___________________________________________________________________________ 
Introduced by 
PHILRECA Party-List Representative Presley C. De Jesus, 
APEC Party-List Representative Sergio C. Dagooc, 
AN ACT 
INSTITUTIONALIZING INSTALLMENT PAYMENT SCHEME ON BASIC 
UTILITY BILLS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. – This Act shall be referred to as the "Three-
1 
Gives Law". 
2 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of 
3 
the State to promote the general welfare of the Filipino people in times of 
4 
calamity, natural or man-made including the occurrence of pandemics that 
5 
affects the normal economic flow of the State. 
6 
SECTION 3. Coverage. – The law shall cover all residential customers 
7 
of electric, water, internet, cable, and telephone bills, and shall apply when a 
8 
state of calamity is declared by the President of the Republic of the Philippines 
9 
or any authorized Local Government Official having jurisdiction over the area 
10 
under a state of calamity. 
11 
SECTION 4. Moratorium on Residential Utility Bills. – There shall 
12 
be a moratorium in the payment or collection of all residential utility bills 
13 
during the entire duration of a state of calamity. Holders of public utility 
14 
franchises and all service providers are prohibited from exacting payment or 
15 
from disconnecting the service due to non-payment during the entire duration 
16 
of the state of calamity. Provided that nothing in this law shall prevent 
17 
voluntary payment by customers. 
18 
3433


SECTION 5. Moratorium on Remittance of Collections to 
19 
Government Instrumentalities and Bills due to Generation Companies, 
20 
Transmission Concessionaires. – In the case of electric cooperatives, there 
21 
shall be a moratorium in the payment or collection of all bills due to 
22 
generation companies and transmission concessionaires and remittances of 
23 
collections, such as Universal Charges, to government instrumentalities 
24 
during the entire duration of a state of calamity.  
25 
SECTION 6. Installment Payment for the Deferred Liability. – Any 
26 
amount due and demandable during the moratorium period shall be payable 
27 
in three (3) equal monthly installments, without interest, penalties, or 
28 
surcharges after the lapse of thirty (30) days from the cessation of a state of 
29 
calamity. 
30 
The same payment scheme as provided in the preceding paragraph 
31 
shall be extended to the public utility franchise holders and service providers 
32 
by their suppliers. Provided, however, that any actual voluntary payment 
33 
received during the said period is still required to be immediately or paid 
34 
proportionately to remitted the concerned entities. 
35 
SECTION 7.  Power Supply Agreements under a State of Calamity. 
36 
- When an area is placed under a State of Calamity, the Force Majeure clause 
37 
shall be mandatorily enforced on the Power Supply Agreements between 
38 
distribution utilities and its Power suppliers. Provided that contracting parties 
39 
must arrive with a recalibrated agreement, specifically on adjustment of 
40 
minimum energy offtake (MEOT) and contracted capacity. Provided further, 
41 
that this section can be waived upon the discretion of the Distribution Utility 
42 
of an area under the State of Calamity. 
43 
SECTION 8. Expenses on Short-Term Loans covered by Electric 
44 
Cooperatives Emergency and Resiliency Fund. – In the event that electric 
45 
cooperatives resort to short-term loan borrowings to settle obligations during 
46 
the duration of the state of calamity, all borrowing costs including interest, 
47 
front-end fee, documentary tax, and other related expenses shall be covered 
48 
by the Electric Cooperatives Emergency and Resiliency Fund (ECERF). 
49 
SECTION 9.  Penalty. – Public utility franchise holders and service 
50 
providers found in violation of this law shall be punishable with a fine of not 
51 
more than One Million Pesos (P1,000,000.00) per infraction. 
52 
SECTION 10. Implementation. – This law shall be implemented by the 
53 
public utility regulatory agencies concerned, such as the Metropolitan 
54 
Waterworks and Sewerage System, Local Water Utilities Administration, 
55 
National Telecommunications Commission, Energy Regulatory Commission, 
56 
and the National Electrification Administration. 
57 


SECTION 11.  Repealing Clause. – All laws, decrees, executive orders, 
58 
proclamations, rules and regulations, and issuances, or parts thereof which 
59 
are inconsistent with the provisions of this Act are hereby amended or 
60 
modified accordingly. 
61 
SECTION  12.  Separability Clause. – If any provision of this Act is 
62 
declared invalid or unconstitutional, the remaining provisions not affected 
63 
thereby shall remain in force and effect. 
64 
SECTION  13.  Effectivity Clause. –  This Act shall take effect fifteen 
65 
(15) days after its complete publication in the Official Gazette or a newspaper 
66 
of general circulation. 
67 
Approved, 
68