1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _____________ 
Introduced by Representative KRISTINE SINGSON-MEEHAN 
EXPLANATORY NOTE 
Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 
(EPIRA), laid the groundwork for power sector restructuring, privatization, and 
market liberalization. While it has facilitated private sector participation and the 
establishment of competitive electricity markets, persistent structural and regulatory 
gaps have hindered it from fulfilling its objective of ensuring reliable, affordable, and 
secure electricity supply. 
 Electricity rates in the Philippines remain among the highest in Asia despite 
privatization and unbundling. Market concentration persists, with a handful of 
conglomerates dominating generation and distribution. Consumers continue to 
shoulder stranded costs through universal charges, while mechanisms for consumer 
protection and participation remain underdeveloped. 
This measure introduces comprehensive amendments to further strengthen 
the electric power industry. It clarifies sectoral classifications, reinforces ERC’s 
regulatory and enforcement powers, expands its organizational capacity, mandates 
transparency in rates, and ensures stricter safeguards against cross-ownership and 
anti-competitive conduct. It also institutionalizes DOE’s supervisory role in 
transmission development planning, provides fiscal and operational incentives to 
lower end-user electricity costs, tightens restrictions on foreign state-owned capital in 
transmission, and recalibrates universal charge collections to align with the Murang 
Kuryente Act and renewable energy development. 
 In view of the foregoing, the passage of this bill is earnestly sought. 
DEPUTY SPEAKER KRISTINE SINGSON-MEEHAN 
2nd DISTRICT ILOCOS SUR 
August 28, 2025
1:22 pm
4148


2 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _____________ 
Introduced by Representative KRISTINE SINGSON-MEEHAN 
AN ACT STRENGTHENING FURTHER THE ELECTRIC POWER INDUSTRY 
AMENDING FOR THE PURPOSE SECTIONS 1, 4, 5, 6, 7, 8, 9, 20, 21, 22, 23, 26, 
28, 29, 30, 34, 35, 36, 37, 43, 45, 46, 47, 57, 60, 61, 62, 63, 70, AND 71 OF 
REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE “ELECTRIC POWER 
INDUSTRY REFORM ACT OF 2001” 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Section 1 of Republic Act No. 9136, otherwise known as the 
"Electric Power Industry Reform Act of 2001" is amended to read as follows: 
“SEC. 1. Title. - This Act shall be known as the "New Electric Power Industry Reform 
Act [of 2001].” 
SECTION 2. Section 4 of Republic Act No. 9136 is hereby amended to read 
as follows: 
“SEC. 4. Definition of Terms. – 
(xx) "Supplier" refers to any person or entity LICENSED [authorized] by the ERC to
sell, broker, market or aggregate electricity to the end-users;
xxx 
(zz) "Supply of Electricity" means the sale of electricity TO THE CONTESTABLE 
MARKET by a SUPPLIER [party other than a generator or a distributor] in the 
franchise area of a distribution utility using the wires of the distribution utility 
concerned; 
xxx 
(bbb) "Transmission Development Plan or "TDP” refers to the PLANS AND program 
for managing AND OPERATING the transmission system NETWORK through 
efficient planning AND IMPLEMENTATION for the expansion, upgrading, 
rehabilitation, repair and maintenance OF SUCH NETWORK AND FACILITIES [,to 
4148


3 
be formulated by DOE and implemented by the TRANSCO pursuant to this 
Act]; 
 
xxx” 
 
SECTION 3. Section 5 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 5. Organization. - The electric power industry shall be divided into four (4) 
sectors, namely: generation, transmission, distribution, and supply.  
 
THE NATURE OF AN ENERGY STORAGE SYSTEM SHALL BE CLASSIFIED 
BASED ON ITS PRIMARY PURPOSE, SUBJECT TO THE RULES AND 
REGULATIONS TO BE ISSUED BY THE DOE IN ACCORDANCE WITH THE 
PROVISIONS OF THIS ACT.” 
 
SECTION 4. Section 6 of Republic Act No. 9136 is hereby amended to read 
as follows: 
 
“SEC. 6. Generation Sector. - xx x 
 
Pursuant to the objective of lowering electricity rates to end-users, sales of generated 
power by generation companies shall be value added tax zero-rated. 
 
The ERC shall, in determining the existence of market power abuse or 
anticompetitive behavior, require from generation companies the submission of their 
financial statements AND ANY OTHER RELEVANT DOCUMENT AS MAY BE 
DEEMED NECESSARY IN THE EXERCISE OF SUCH FUNCTION.” 
 
SECTION 5. Section 7 of Republic Act No. 9136 is hereby amended to read 
as follows: 
 
“SEC. 7. Transmission Sector. – The transmission of electric power shall be A 
REGULATED PUBLIC UTILITY, AS DEFINED UNDER RA NO. 11659 OR THE 
PUBLIC SERVICE ACT AS AMENDED [common electricity carries business,] 
subject to the RELEVANT POLICIES ISSUED BY THE DOE AND THE 
[ratemaking] RATE-SETTING powers of the ERC. PROVIDED FURTHER, THAT 
AN ENTITY CONTROLLED BY OR ACTING ON BEHALF OF THE FOREIGN 
GOVERNMENT OR FOREIGN STATE-OWNED ENTERPRISES SHALL BE 
PROHIBITED FROM OWNING CAPITAL IN ANY ENTITY ENGAGED IN THE 
TRANSMISSION OF ELECTRICITY. PROVIDED FURTHER, THAT FOREIGN 
STATE-OWNED ENTERPRISES WHICH OWN CAPITAL PRIOR TO THE 
EFFECTIVITY OF THIS LAW ARE PROHIBITED FROM INVESTING IN 
ADDITIONAL CAPITAL UPON THE EFFECTIVITY OF THIS ACT AND SHALL 
DIVEST ITS INVESTMENT WITHIN TEN (10) YEARS FROM THE DATE OF THE 
EFFECTIVITY OF THIS ACT.  
 
IN THE INTEREST OF NATIONAL SECURITY, AN ENTITY CONTROLLED BY OR 
ACTING ON BEHALF OF THE FOREIGN GOVERNMENT OR FOREIGN-OWNED 
ENTERPRISES 
SHALL 
NOT 
MAKE 
ANY 
DATE 
OR 
INFORMATION 
DISCLOSURE, NOR EXTEND ASSISTANCE, SUPPORT OR COOPERATION TO 
ANY FOREIGN GOVERNMENT, INSTRUMENTALITIES OR AGENTS.  
 


4 
The ERC shall set the standards of the voltage transmission that shall distinguish the 
transmission from the subtransmission assets. xxx” 
 
SECTION 6. Section 8 of Republic Act No. 9136 is hereby amended to read 
as follows: 
 
“SEC. 8. Creation of the National Transmission [Company] CORPORATION. 
–  
 
xxx  
 
The sub-transmission functions and assets, FACILITIES, AND LIABILITIES, 
IF ANY, shall be segregated from the transmission functions, assets, 
FACILITIES, and liabilities for transparency and disposal: Provided, That the 
sub-transmission 
FUNCTIONS, 
assets, 
AND 
FACILITIES 
shall 
be 
PERFORMED, 
operated 
and 
maintained 
by 
TRANSCO, 
OR 
ITS 
CONCESSIONAIRE, until SUCH FUNCTIONS, ASSETS, AND FACILITIES 
ARE SOLD OR OTHERWISE DISPOSED AND TRANSFERRED to qualified 
distribution utilities which are in a position to take over the responsibility for 
operating, 
maintaining, 
upgrading, 
and 
expanding 
said 
assets. 
All 
transmission and sub-transmission related liabilities of NPC shall be 
transferred to and SHALL BE assumed by the PSALM Corp.  
 
[The TRANSCO may exercise the power of eminent domain subject to 
the requirements of the Constitution and existing laws. Except as 
provided herein, no person, company or entity other than the TRANSCO 
shall own any transmission facilities.]  
 
THE TRANSCO AND ITS CONCESSIONAIRE MAY EXERCISE THE 
POWER OF EMINENT DOMAIN SUBJECT TO THE REQUIREMENTS OF 
THE CONSTITUTION AND EXISTING LAWS. PROVIDED, THAT THE 
EXERCISE OF THE RIGHT OF EMINENT DOMAIN SHALL BE 
NECESSARY FOR THE CONSTRUCTION, EXPANSION, AND EFFICIENT 
MAINTENANCE AND OPERATION OF THE TRANSMISSION SYSTEM 
AND 
GRID, 
AS 
WELL 
AS 
THE 
EFFICIENT 
OPERATION 
AND 
MAINTENANCE OF THE SUBTRANSMISSION SYSTEMS. PROVIDED 
FURTHER, THAT TRANSCO AND ITS CONCESSIONAIRE MAY ACQUIRE 
SUCH 
PRIVATE 
PROPERTIES 
NECESSARY 
FOR 
THE 
GRID 
DEVELOPMENT OF THE COUNTRY.  
 
EXCEPT AS PROVIDED IN THIS ACT AND ANY OTHER LAWS, NO 
PERSON, COMPANY, OR ENTITY OTHER THAN THE TRANSCO SHALL 
OWN 
ANY 
TRANSMISSION 
FACILITIES. 
CONSIDERING 
THAT 
TRANSMISSION 
SYSTEMS 
ARE 
PROJECTS 
OF 
NATIONAL 
SIGNIFICANCE, THE LOCAL GOVERNMENT UNITS, COURTS OF LAW 
AND 
OTHER 
RELEVANT 
GOVERNMENT 
AGENCIES 
SHALL 
IMMEDIATELY PROCESS AND APPROVE THE PERMITS, LICENSES, 
AND THIS SECTION. OTHER REQUIREMENTS NECESSARY FOR THE 
IMPLEMENTATION OF THIS SECTION. 
 


5 
THE DOE, WITHIN SIXTY (60) DAYS UPON THE EFFECTIVITY OF THIS 
ACT, SHALL ISSUE THE IMPLEMENTING RULES AB RECUATIONS FOR 
THE IMPLEMENTATION OF THIS SECTION.” 
 
  
SECTION 7. Section 9 of Republic Act No. 9136 is hereby amended to read 
as follows: 
  
“SEC. 9. Functions and Responsibilities, - xxx  
 
(a) xxx  
 
xxx  
(c) Ensure and maintain the reliability, adequacy, security, stability and integrity of 
the nationwide electrical grid in accordance with the performance standards for 
the operations and maintenance of the grid, as set forth in THE PHILIPPINE [a] 
Grid Code to be adopted] [and] promulgated AND AMENDED by the ERC, IN 
COORDINATION WITH THE DOE, within six (6) months from the effectivity of 
this Act;  
(d) Improve and expand its transmission facilities, consistent with the Grid Code and 
DOE APPROVED Transmission Development Plan (TDP) to be [promulgated] 
PUBLISHED pursuant to this Act, to adequately serve generation companies, 
distribution utilities and suppliers requiring transmission service and/or ancillary 
services through the transmission system: Provided, That TRANSCO OR ITS 
CONCESSIONAIRE shall submit any plan for expansion or improvement of its 
facilities for approval by the ERC; 
(e) xxx  
(f) xxx  
(g) ACT AS THE SMALL GRID SYSTEM OPERATOR IN SPECIFIC OFF. GRID 
AREAS AS DETERMINED BY THE DOE AND, UPON APPROVAL OF THE 
DOE, MAY ENTER INTO CONCESSION AGREEMENTS FOR THIS PURPOSE. 
 
[In the preparation of the TDP, TRANSCO shall consult the other 
participants of the electric power industry such as the generation 
companies, distribution utilities, and the electricity end-users. The TDP 
shall be submitted to the DOE for integration with the Power Development 
Program and the Philippine Energy Plan, provided for in Republic Act No. 
7638 otherwise known as the Department of Energy Act of 1992.]  
 
THE PREPARATION AND FORMULATION OF THE TDP SHALL BE 
UNDERTAKEN 
BY 
TRANSCO 
AND/OR 
ITS 
CONCESSIONAIRE 
IN 
CONSULTATION WITH OTHER PARTICIPANTS OF THE ELECTRIC POWER 
INDUSTRY: PROVIDED, THAT THE TRANSCO MAY DELEGATE TO ITS 
CONCESSIONAIRE THE PREPARATION AND FORMULATION OF THE TDP: 
PROVIDED FURTHER, THAT THE TDP SHALL BE SUBJECT TO THE 
REVIEW AND APPROVAL OF THE DOE: PROVIDED FINALLY, THAT UPON 
SUBMISSION OF THE TDP, THE DOE MAY SEEK THE ASSISTANCE OF 
TRANSCO IN THE REVIEW OF THE TDP PRIOR TO ITS APPROVAL. 
 
 A generation company may develop and own or operate dedicated point-to-point 
limited transmission facilities that are consistent with the TDP: xxx” 
 
SECTION 8. Section 20 of Republic Act No. 9136 is hereby amended to read 
as follows: 
 


6 
 “SEC. 20. TRANSCO Related Businesses, - TRANSCO OR ITS SUCCESSOR-IN-
INTEREST may engage in any related business which maximizes utilization of its 
assets: Provided, That a portion of the net income derived from such undertaking 
utilizing assets which form part of the rate base shall be used to reduce transmission 
wheeling rates as determined by the ERC. [Such portion of net income used to 
reduce the transmission wheeling rates shall not exceed fifty percent (50%) of 
the net income derived from such undertaking] A MINIMUM OF FIFTY 
PERCENT (50%) OF THE NET INCOME DERIVED FROM SUCH UNDERTAKING 
SHALL BE USED TO REDUCE THE TRANSMISSION WHEELING RATES.  
 
Separate accounts shall be maintained for each business undertaking to ensure that 
the transmission business shall neither subsidize in any way such business 
undertaking nor encounter its transmission assets in any way to support such 
business.”  
 
SECTION 9. Section 21 of Republic Act No. 9136 is hereby amended to read 
as follows: 
 
“SEC. 21. TRANSCO Privatization. - Within six (6) months from the effectivity of this 
Act, xxx.  
 
In any case, the awardee shall comply with the Grid code and the TDP as approved. 
xxx 
  
TRANSCO AND ITS CONCESSIONAIRE SHALL STRICTLY COMPLY WITH THE 
APPROVED TDP AND SHALL NOT CHANGE THE TDP WITHOUT PRIOR 
APPROVAL OF THE DOE. FAILURE TO COMPLETE THE ERC-APPROVED 
PROJECTS WITHIN THE TIMELINE PRESCRIBED IN THE TDP SHALL BE 
DEEMED NON-COMPLIANCE THEREOF, SUBJECT TO FINES AND PENALTIES 
PRESCRIBED IN THIS ACT.  
 
IN THE EVENT OF NON-COMPLIANCE OF THE TDP, THE DOE SHALL 
RECOMMEND TO THE PRESIDENT OF THE PHILIPPINES THE ASSIGNMENT 
OR DELEGATION OF SUCH ERC-APPROVED PROJECT TO A COMPETENT 
AND QUALIFIED ENTITY THROUGH AN EXECUTIVE ORDER. ANY RIGHTS OR 
RESPONSIBILITIES OF THE ASSIGNEE SHALL BE LIMITED TO THE 
TRANSMISSION 
PROJECT ASSIGNED. 
UPON ITS COMPLETION, THE 
ASSIGNEE SHALL BE ENTITLED TO RECOVERY OR JUST COMPENSATION, 
SUBJECT TO THE TERMS AND CONDITIONS INDICATED IN THE EXECUTIVE 
ORDER. THEREAFTER, THE PROJECT SHALL BE TRANSFERRED TO THE 
TRANSCO OR ITS CONCESSIONAIRE, AS PART OF ITS TRANSMISSION 
ASSETS.  
 
THE DOE AND ERG SHALL ISSUE THE NECESSARY GUIDELINES FOR THE 
IMPLEMENTATION OF THIS PROVISION.  
 
The awardee shall be financially and technically capable, with proven domestic 
and/or international experience and expertise as a leading transmission system 
operator. Such experience must be with a transmission system of comparable 
capacity and coverage as the Philippines.” 
 
SECTION 10. Section 22 of Republic Act No, 9136 is hereby amended to 
read as follows:  
 


7 
“SEC. 22. Distribution Sector. - The distribution of electricity to end-users IS A 
PUBLIC UTILITY OPERATION, AS DEFINED UNDER RA NO. 11659 OR THE 
PUBLIC SERVICE ACT, AS AMENDED, [shall be a regulated common carrier 
business] WHICH REQUIRES [requiring] a national franchise. Distribution of 
electric power to all end-users may be undertaken by private distribution utilities, 
cooperatives, local government units presently undertaking this function and other 
duly authorized entities, subject to regulation by the ERC.” 
 
SECTION 11. Section 23 of Republic Act No. 9136 is hereby amended to 
read as follows:  
 
“SEC. 23. Functions of Distribution Utilities. - A distribution utility shall have the 
obligation to provide distribution services and connections to its system for any end-
user within its franchise area consistent with the PHILIPPINE [d]Distribution [e]Code 
AND PHILIPPINE GRID CODE. 
 
Any entity engaged IN THE DISTRIBUTION OF ELECTRICITY [therein] shall 
provide open and non-discriminatory access to its distribution system to all users.  
Any distribution utility shall be entitled to impose and collect distribution wheeling 
charges and connection fees from such end-users as approved by the ERC. 
 
DISTRIBUTION UTILITIES SHALL ENDEAVOR TO HAVE A FULLY AUTOMATED 
DISTRIBUTION NETWORK WITH THE SUPERVISION AND GUIDANCE OF THE 
DOE AND ERC. 
 
A distribution utility shall have the obligation to supply REASONABLY PRICED 
electricity [in the least cost manner] to its captive market, subject to the collection 
of retail rate duly approved by the ERC[-] TAKING INTO CONSIDERATION THE 
QUALITY, AFFORDABILITY, SUSTAINABILITY AND RELIABILITY OF SUPPLY 
OF ELECTRIC POWER.  
 
ALL DISTRIBUTION UTILITIES, EXCEPT FOR OFF-GRID UTILITIES, SHALL 
COMPLY WITH GRID RELIABILITY AND WESM REQUIREMENTS. TOWARDS 
THIS END, THE DU SHALL MAKE AVAILABLE ALL INFORMATION NEEDED BY 
THE SYSTEM OPERATOR AND MARKET OPERATOR TO ACHIEVE OPTIMAL 
DISPATCH AND UTILIZATION OF ENERGY IN THE GRID, WHICH MAY INCLUDE 
REAL-TIME DATA. NON-COMPLIANCE WITH THIS SECTION SHALL BE 
SUBJECT TO FINES AND PENALTIES PRESCRIBED IN THIS ACT. 
 
To achieve economies of scale xxx” 
 
SECTION 12. Section 26 of Republic Act No. 9136 is hereby amended to 
read as follows:  
 
“SEC. 26. Distribution Related Businesses. - Distribution utilities may, directly 
or indirectly, engage in any related business undertaking which maximizes the 
utilization of their assets: Provided, That a [portion] MINIMUM OF FIFTY 
PERCENT (50%) of the net income derived from such undertaking [utilizing 
assets which form part of the rate base] shall be used to reduce the 
distribution wheeling (charges as determined by the ERC] RATES. 
[Provided, further, That such portion of net income used to reduce their 
distribution wheeling charges shall not exceed fifty percent (50%) of the 
net income derived from such undertaking:] Provided, [finally,] 


8 
FURTHER, That separate accounts are maintained for each business 
undertaking to ensure that the distribution business shall neither subsidize in 
any way such business undertaking nor encumber its distribution assets in 
any way to support such business.” 
 
SECTION 13. Section 28 of Republic Act No. 9136 is hereby amended to 
read as follows: 
  
“SEC. 28. De-Monopolization and Shareholding Dispersal. - In compliance 
with the constitutional mandate for dispersal of ownership and de-
monopolization of public utilities, the holdings of persons, natural or juridical, 
including directors, officers, stockholders and related interests, in a 
distribution utility and their respective holding companies shall not exceed 
[twenty five (25%)] FIFTEEN (15%) percent of the voting shares of stock 
unless the utility or the company holding the shares or its controlling 
stockholders are already listed in the Philippine Stock Exchange (PSE): 
Provided, HOWEVER, THAT SMALL DISTRIBUTION COMPANIES AND 
ELECTRIC 
COOPERATIVES 
SHALL 
BE 
EXEMPT 
FROM 
THIS 
REQUIREMENT. [That controlling stockholders of small distribution 
utilities are hereby required to list in the PSE within five (5) years from 
the enactment of this Act if they already own the stocks. New controlling 
stockholders shall undertake such listing within five (5) years from the 
time they acquire ownership and control]  
 
The ERC shall, WITHIN SIXTY (60) DAYS FROM THE EFFECTIVITY OF 
THIS ACT, promulgate the rules and regulations to implement and effect this 
provision. [This Section shall not apply te electric cooperatives.]” 
 
SECTION 14. Section 29 of Republic Act No. 9136 is hereby amended to 
read as follows:  
 
“SEC. 29. Supply Sector. - The supply sector is a business affected with public 
interest. [Except for distribution utilities and electric cooperativos with respect-
to-their-existing franchise areas,] ALL [all] suppliers of electricity to the 
contestable market shall require a license from the ERC  
 
xxx 
 
Electricity suppliers shall be subject to the rules and regulations concerning abuse of 
market power, cartelization, and other anti-competitive or discriminatory behavior to 
be promulgated by the ERC. In its billings to end-users, every supplier shall identity 
and segregate the components of its supplier's charge, as defined herein.” 
 
SECTION 15. Section 30 of Republic Act No. 9136 is hereby amended to 
read as follows: 
 
“SEC. 30. Wholesale Electricity Spot Market. - Within one (1) year from the 
effectivity of this Act, xxx 
 
AFTER CONSULTATION [Jointly] with the electric power industry participants, xxx  
 


9 
The wholesale electricity spot market shall be implemented by a market operator in 
accordance with the wholesale electricity spot market rules. AS AUTHORIZED TO 
BE ESTABLISHED UNDER THIS ACT, THE WHOLESALE ELECTRICITY SPOT 
MARKET SHALL CONTINUE ITS INDEPENDENT AND PRIVATE NATURE. THE 
DOE, IN CONSULTATION WITH THE STAKEHOLDERS SHALL DETERMINE THE 
ORGANIZATIONAL STRUCTURE OF THE WHOLESALE ELECTRICITY SPOT 
MARKET, AND THE INSTITUTION OF OTHER ENERGY-RELATED MARKETS. 
The market operator shall be an autonomous AND PRIVATE group, to be constituted 
by DOE, with equitable representation from electric power industry participants, 
initially under the administrative supervision of the TRANSCO. The market operator 
shall undertake the preparatory work and initial operation of the wholesale electricity 
spot market. Not later than one (1) year from the implementation of the wholesale 
electricity spot market, an independent AND PRIVATE entity shall be formed, and 
the functions, assets, and liabilities of the market operator shall be transferred to 
such entity with the joint endorsement of the DOE and the electric power industry 
participants. Thereafter, the administrative supervision of the TRANSCO over such 
entity shall cease. THE DOE SHALL ENSURE THE INDEPENDENCE AND 
PRIVATE NATURE OF THE MARKET OPERATOR BY INSTITUTING MEASURES 
THAT WILL MINIMIZE OR PREVENT UNNECESSARY GOVERNMENT AND 
ELECTRIC POWER INDUSTRY PARTICIPANT INTERVENTION IN THE MARKET 
OPERATIONS AND GOVERNANCE FUNCTIONS.  
 
SUBJECT TO DOE EVALUATION, THE WHOLESALE ELECTRICITY SPOT 
MARKET MAY ADOPT A SEPARATE WESM GOVERNANCE BODY AND 
MARKET 
OPERATOR, 
PROVIDED 
THAT 
BOTH 
ENTITIES 
REMAINN 
INDEPENDENT 
FROM 
ELECTRIC 
POWER 
INDUSTRY 
PARTICIPANTS. 
PROVIDED 
FURTHER, 
THAT 
THE 
ELECTRIC 
POWER 
INDUSTRY 
PARTICIPANTS SHALL CONTINUE TO PROVIDE ADVISORY FUNCTIONS ON 
WESM GOVERNANCE, OPERATIONS AND RULEMAKING.  
 
Subject to the compliance with the membership criteria, all generating companies, 
distribution utilities, suppliers, bulk consumers/end-users and other similar entities 
authorized by the ERC shall be eligible to become members of the wholesale 
electricity spot market. 
 
The ERC may authorize other similar entities to become eligible as members, either 
directly or indirectly, of the wholesale electricity spot market. xxx” 
 
SECTION 16. Section 34 of Republic Act No. 9136 is hereby amended to 
read as follows: 
 
“SEC. 34. Universal Charge. – [The universal charge shall be non-bypassable 
charge which shall be passed on and collected from all end-users on a monthly 
basis by the distribution utilities. Collections by the distribution utilities and 
the Transco in any given month shall be remitted to the psalm corp. On or 
before the fifteenth (15th) of the succeeding month, net of any amount due to 
the distribution utility:] THE UNIVERSAL CHARGE (UC) SHALL BE A NON-
BYPASSABLE CHARGE TO BE DETERMINED BY THE ERC WHICH SHALL BE 
PASSED ON AND COLLECTED FROM ALL END-USERS ON A MONTHLY BASIS 
BY THE DISTRIBUTION UTILITIES, AND FROM DIRECTLY CONNECTED 
CUSTOMERS BY TRANSCO OR ITS SUCCESSOR-IN-INTEREST. Any end-user 
[or self-generating entity] not connected to a distribution utility shall remit its 
corresponding universal charge directly to the TRANSCO.  
 


10 
THE UNIVERSAL CHARGE SHALL BE FOR THE FOLLOWING PURPOSES:  
(a) Payment for the stranded debts and stranded contract costs of NPC in excess of 
the amount assumed by the National Government, PURSUANT TO SECTION 32 
OF THE EPIRA, and as well as qualified stranded contract costs of distribution 
utilities resulting from the restructuring of the industry; 
(b) PAYMENT FOR THE STRANDED DEBTS AND STRANDED CONTRACT 
COSTS OF NC IN EXCESS OF THE AMOUNT ASSUMED BY THE NATIONAL 
GOVERNMENT, PURSUANT TO MURANG KURYENTE ACT;  
(c) Missionary electrification;  
(d) The equalization of the taxes and royalties applied to indigenous or renewable 
sources of energy vis-a-vis imported energy fuels;  
(e) An environmental charge equivalent to one-fourth of one centavo per kilowatt-
hour (PO.0025/kWh), which shall accrue to an environmental fund to be used 
solely for watershed rehabilitation and management. Said fund shall be managed 
by NPC under existing arrangements; and  
(f) A charge to account for all forms of cross-subsidies for a period not exceeding 
three (3) years. 
 
THE UC COLLECTIONS FOR STRANDED DEBTS AND THE STRANDED 
CONTRACT COSTS OF PC (UC-SD AND SCC) SHALL BE COLLECTED BY THE 
DISTRIBUTION UTILITIES AND THE TRANSCO OR ITS SUCCESSOR-IN-
INTERST IN ANY GIVEN MONTH AND SHALL BE REMITTED TO THE PSALM 
CORP. OR ITS SUCCESSOR-IN-INTEREST BEFORE THE FIFTEENTH (15TH) OF 
THE 
SUCCEEDING 
MONTH, 
NET 
OF ANY 
AMOUNT 
DUE 
TO 
THE 
DISTRIBUTION UTILITY. 
 
THE AMOUNT COLLECTED FOR MISSIONARY ELECTRIFICATION (UC-ME) 
AND ENVIRONMENTAL CHARGE (UC-EC) BY DISTRIBUTION UTILITIES AND 
TRANSCO OR ITS SUCCESSOR-IN-INTEREST IN ANY GIVEN MONTH SHALL 
BE REMITTED TO THE PC BEFORE THE FIFTEENTH (15TH) OF THE 
SUCCEEDING MONTH, NET OF ANY AMOUNT DUE TO THE DISTRIBUTION 
UTILITY.  
 
THE NPC SHALL BE THE ADMINISTRATOR OF THE UC-ME AND UC-EC FUND, 
INCLUDING THE CASH INCENTIVE FUND FOR RENEWABLE ENERGY 
DEVELOPERS IN THE MISSIONARY AREAS PURSUANT TO SECTION 15 (H) OF 
REPUBLIC ACT NO. 9513 OTHERWISE KNOWN AS THE RENEWABLE ACT OF 
2008. AS ADMINISTRATOR OF THE FUND, THE PC SHALL CREATE A SPECIAL 
TRUST FUND WHICH SHALL BE DISBURSED ONLY FOR THE PURPOSES 
SPECIFIED HEREIN IN AN OPEN AND TRANSPARENT MANNER.  
 
The PSALM Corp. OR ITS SUCCESSOR-IN-INTEREST, as administrator of the fund 
FROM UC-SC AND SDD COLLECTIONS, shall create a Special Trust Fund which 
shall be disbursed only for the purposes specified herein in an open and transparent 
manner.  
 
All amounts collected for the universal charge shall be distributed to the respective 
beneficiaries within a reasonable period to be provided by the ERC:  
 
RELEVANT RECORDS PERTAINING TO THE UC-ME AND EC SHALL BE 
TRANSFERRED BY PSALM TO THE NPC WITHIN SIX (6) MONTHS FROM THE 
EFFECTIVITY OF THE IMPLEMENTING RULES AND REGULATIONS.”  
 


11 
SECTION 17. Section 35 of Republic Act No. 9136 is hereby amended to 
read as follows:  
 
“SEC. 35. Royalties, Returns and Tax Rates for Indigenous Energy Resources.  
[The provisions of Section 79 of Commonwealth Act No. 137 (c.a. no. 137 and 
any law to the contrary notwithstanding, the president of the Philippines may 
shall reduce temporarily suspend or reduce, for a period of less than six (6) 
months, the imposition of the royalties, returns and taxes collected for the 
exploitation of all indigenous sources of energy, including but not limited to, 
natural gas and geothermal steam, so as to effect parity of tax treatment with 
the existing rates for imported coal, crude oil, bunker fuel and other imported 
fuels. To ensure lower rates for end-users., the ERC shall forthwith reduce the 
rates of power from all indigenous sources of energy.] 
 
UPON RECOMMENDATION OF THE DOE AND NEDA, THE PRESIDENT OF THE 
PHILIPPINES MAY TEMPORARILY SUSPEND OR REDUCE, FOR A PERIOD OF 
LESS THAN SIX (6) MONTHS, THE IMPOSITION OF THE ROYALTIES, RETURNS 
AND TAXES COLLECTED FOR THE EXPLOITATION OF ALL INDIGENOUS 
SOURCES OF ENERGY TO ENSURE LOWER RATES FOR END-USERS.  
xxx” 
  
SECTION 18. Section 36 of Republic Act No. 9136 is hereby amended to 
read as follows: 
 
“SEC. 36. Unbundling of Rates and Functions. - xxx  
 
Any electric power industry participant shall functionally and structurally unbundle its 
business activities and rates in accordance with the sectors as identified in Section 5 
hereof. The ERC shall ensure full compliance with this provision.  
 
FOR THIS PURPOSE, THE DISTRIBUTION UTILITY SHALL PUBLISH ONLINE 
AND/ OR ANY CONSPICUOUS PLACE, ITS MONTHLY UNBUNDLED RATES, 
INCLUDING THE COST OF EACH GENERATION SUPPLY.” 
 
SECTION 19. Section 37 of Republic Act No. 9136 is hereby amended to 
read as follows:  
 
“SEC. 37. Powers and Functions of the DOE. - In addition to its existing powers and 
functions, the DO is hereby mandated to supervise the restructuring of the electricity 
industry. In pursuance thereof, Section 5 of RA 7638 otherwise known as "The 
Department of Energy Act of 1992" is hereby amended to read as follows: 
(a) xxx  
 
(b) Develop [and update annually] ONCE EVERY THREE (3) YEARS AND 
UPDATED ANNUALLY the existing Philippine Energy Plan, hereinafter referred 
to as 'The Plan', which shall provide for an integrated and comprehensive 
exploration, development, utilization, distribution, and conservation of energy 
resources, with preferential bias for environment-friendly, indigenous, and low-
cost sources of energy. The plan shall include a policy direction towards the 
privatization of government agencies related to energy, deregulation of the 
power and energy industry, and reduction of dependency on oil-fired plants. Said 
Plan shall be submitted to Congress [not later than the fifteenth day of 
September and every year thereafter] WITHIN THIRTY (30) DAYS FROM ITS 
APPROVAL; 


12 
 
(c) xxx 
(d) xxx 
(e) Following the restructuring of the electricity sector, the DOE shall, among others:  
i. 
Encourage AND SUPERVISE private sector investments in the 
electricity sector and promote development of indigenous and 
renewable energy sources;  
 
xxx 
  
(h) Exercise supervision and control over all government AND PRIVATE activities 
relative to energy projects in order to attain the goals embodied in Section 2 of 
RA 7638; 
  
xxx 
  
(l) Formulate and implement a program for the accelerated development of non-
conventional OR RENEWABLE energy systems and the promotion and 
commercialization of its applications;  
 
(m) xxx 
(n) xxx 
(o) Encourage AND INCENTIVIZE private enterprises engaged in energy projects, 
including corporations, cooperatives, and similar collective organizations, to 
broaden the base of their ownership and thereby encourage the widest public 
ownership of energy-oriented corporations;  
(p) COORDINATE WITH THE ERC IN THE PROMULGATION AND AMENDMENT 
OF THE PHILIPPINE GRID CODE AND PHILIPPINE DISTRIBUTION CODE  
(q) RECOMMEND THE IMPOSITION OF FINES AND PENALTIES TO THE ERC 
FOR ANY VIOLATION OF THE EPIRA BY ANY ELECTRIC POWER 
INDUSTRY 
PARTICIPANTS 
IN 
THE 
GENERATION, 
TRANSMISSION, 
DISTRIBUTION AND RETAIL SUPPLY SECTOR.  
(r)  [(p)] Formulate such rules and regulations as may be necessary to implement 
the objectives of this Act; and 
(s) [(q)] Exercise such other powers as may be necessary or incidental to attain the 
objectives of this Act.”  
 
SECTION 20. Expansion of the Energy Regulatory Commission. – The 
present organizational structure of the ERC shall be expanded in the following 
manner: 
 
(1) From the present seven (7) services of the ERC, there shall be at least 
fourteen (14) services.  
 
(2) The four services shall be divided into operations services and support 
services. 
 
(3) The Operation Services, shall be composed of the following: 
i. 
Transmission Operations Service;  
ii. 
Distribution Operations Service;  
iii. 
Generation Operations Service;  
iv. 
Standards And Compliance Monitoring Service;  
v. 
Investigation And Enforcement Service; 


13 
vi. 
Market Operations Service;  
vii. 
Licensing And Registration Service;  
viii. 
Legal Service; Consumer Affairs Service; and 
ix. 
Natural Gas Service;  
 
(4) The Support Services shall be composed of the following:  
x. 
Finance and Administration Service;  
xi. 
Office of the General Counsel And Secretariat;  
xii. 
Planning and Public Information Service; and  
xiii. 
Information Technology and Management Services.  
 
(5) Each Operation Service shall consist of at least four (4) divisions. Each 
division shall consist of at least ten (10) personnel. The number of 
divisions and personnel per division may be increased upon determination 
of the commission.  
 
(6) Each of the Support Service shall be composed of not less than two (2) 
divisions. The number of divisions and personnel per division may be 
increased upon determination of the commission. 
 
(7) The Commission may later on increase the number of services if 
necessary after its assessment of its workload, power and functions.  
 
The Commission may choose either to keep an existing personnel of the ERC 
in his/her current position, or transfer them to any position depending on the 
Commission's assessment of such personnel's capacity and performance; 
Provided, That the new position to which he/she was transferred to will be of 
the same rank and salary from its previous position without the necessity of 
reappointment.  
 
The ERC shall submit to the Department of Budget and Management (DBM) 
the proposed organizational expansion provided herein within three (3) 
months from the effectivity of this Act.  
 
The DBM shall approve the submitted proposed organizational expansion 
within one month from its receipt. The DBM shall not approve less than the 
minimum required in this Act. 
 
Every after five (5) years from the effectivity of this Act, the ERC shall 
reassess its then organizational structure to determine if there is a need for 
further expansion or reorganization, which may include additional services, 
divisions or personnel per division. The DBM shall approve any proposed 
organizational expansion or restructuring within one month from its receipt 
thereof.  
 
SECTION 21. Sec. 43 of Republic Act No. 9136 is hereby amended to read 
as follows: 
  
“SEC. 43. Functions of the ERC. – The ERC shall promote competition, encourage 
market development, ensure customer choice and penalize abuse of market power in 


14 
the restructured electricity industry. In appropriate cases, the ERC is authorized to 
issue cease and desist order after due notice and hearing. Towards this end, it shall 
be responsible for the following key functions in the restructured industry: 
  
(a) xxx  
 
(c) Within six (6) months from the effectivity of this Act, promulgate OR AMEND, IN 
COORDINATION WITH THE DOE, and enforce, in accordance with law, THE [a] 
PHILIPPINE [National] Grid Code and THE PHILIPPINE [a] Distribution Code 
which shall include, but not limited to, the following:  
 
xxx  
 
(k)  [Monitor] 
ENDORSE 
FOR 
INVESTIGATION 
TO 
THE 
PHILIPPINE 
COMPETITION COMMISSION [ and take measures in accordance with this 
Act-to-penalize] ANY ACTS OF abuse of market power, cartelization, and anti-
competitive or discriminatory behavior by any electric power industry participant; 
 
(r) In the exercise of its investigative and quasi-judicial powers, act against any 
participant or player in the energy sector for violations of any law, rule and 
regulation governing the same, including the rules on cross-ownership, anti-
competitive practices, abuse of market positions and similar or related acts by 
any participant in the energy sector or by any person, as may be provided by law, 
and require any person or entity to submit any report or data relative to any 
investigation or hearing conducted pursuant to this Act;  
 
(s) Inspect, on its own or through duly authorized representatives OR THE 
PHILIPPINE COMPETITION COMMISSION, the premises, books of accounts 
and records of any person or entity at any time, in the exercise of its quasi-judicial 
power for purposes of determining the existence of any anticompetitive behavior 
and/or market power abuse and any violation of rules and regulations issued by 
the ERC; 
 
xxx”  
 
SECTION 22. Sec. 47 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 45. Cross Ownership, Market Power Abuse and Anti-Competitive Behavior. - 
No participant in the electricity industry or any other person may engage in any anti-
competitive behavior including, but not limited to, cross-subsidization, price or market 
manipulation, or other unfair trade practices detrimental to the encouragement and 
protection of contestable markets.  
 
THE PHILIPPINE COMPETITION COMMISSION SHALL INVESTIGATE ANY 
POSSIBLE VIOLATION OR NON-COMPLIANCE OF THIS SECTION. BASED ON 
THE FINDINGS AND RECOMMENDATIONS OF THE PHILIPPINE COMPETITION 
COMMISSION, THE ERC SHALL DETERMINE WHETHER SUCH VIOLATION OR 
NON-COMPLIANCE WAS COMMITTED AND IMPOSE THE CORRESPONDING 
FINES AND PENALTIES.  
 
To promote true market competition and prevent harmful monopoly and market 
power abuse, the ERC shall enforce the following safeguards:  
 


15 
xxx 
 
 
(c) NO DISTRIBUTION UTILITY SHALL BE ALLOWED TO HOLD ANY 
INTEREST, DIRECTLY OR INDIRECTLY, IN SUPPLY OF ELECTRICITY. 
LIKEWISE, THE SUPPLIER SHALL NOT HOLD ANY INTEREST, 
WHETHER DIRECTLY OR INDIRECTLY, IN ANY DISTRIBUTION UTILITY. 
 
THE ABOVE PROHIBITION SHALL EXTEND TO ANY OF THE 
DISTRIBUTION UTILITY'S STOCKHOLDERS OR OFFICIALS OR ANY OF 
THEIR 
RELATIVES 
WITHIN 
THE 
FOURTH 
CIVIL 
DEGREE 
OF 
CONSANGUINITY OR AFFINITY, AND THAT OF A DISTRIBUTION 
UTILITY'S, AGENTS AND SUBSIDIARIES.  
 
A RETAIL ELECTRICITY SUPPLIER (RES) SHALL NOT BE ALLOWED TO 
HOLD 
ANY 
SHARES 
OF 
STOCK 
IN 
TRANSCO 
OR 
ITS 
CONCESSIONAIRE OR SUCCESSOR-IN-INTEREST. THIS PROHIBITION 
ON CROSS-OWNERSHIP SHALL NOT APPLY TO:  
 
(A) A RELATIVE OF ANY STOCKHOLDER, DIRECTOR OR OFFICER OF 
TRANSCO 
OR 
ITS 
CONCESSIONAIRE 
OR 
SUCCESSOR 
IN. 
INTEREST WHO HAS NO PROFESSIONAL ENGAGEMENT OR 
OTHER ECONOMIC RELATIONSHIP OR INTEREST IN TRANSCO OR 
ITS SUCCESSOR-IN-INTEREST, AND VICE-VERSA; AND  
 
(B) OWNERSHIP OF SHARES OF STOCK IN A COMPANY LISTED IN THE 
PHILIPPINE STOCK EXCHANGE (PSE) EVEN IF SUCH LISTED 
COMPANY IS A RES, SUBJECT TO THE CAP THAT THE ERC SHALL 
DETERMINE. 
 
(d) [(c)] For the first five (5) years from the establishment of the wholesale 
electricity spot market, no distribution utility shall source more than ninety 
percent (90%) of its total demand from bilateral power supply contracts. 
 
 xxx  
 
The ERC, IN COORDINATION WITH THE PHILIPPINE COMPETITION 
COMMISSION, shall within one (1) year from the effectivity of this Act, 
promulgate rules and regulations to ensure and promote competition, encourage 
market development and customer choice and discourage/ penalize abuse of 
market power, cartelization and any anti-competitive or discriminatory behavior, 
in order to further the intent of this Act and protect the public interest. Such rules 
and regulations shall define the following: 
 
 (a) the relevant markets for purposes of establishing abuse or misuse of 
monopoly or market position;  
 
(b) areas of isolated grids; and 
 
(c) the periodic reportorial requirements of electric power industry participants as 
may be necessary to enforce the provisions of this Section.  
 
The ERC shall, [motu-proprio] UPON RECOMMENDATION OF THE 
PHILIPPINE COMPETITION COMMISSION, penalize any market power abuse 
or anti-competitive or discriminatory act or behavior by any participant in the 
electric power industry. Upon finding BY THE ERC that a market participant has 


16 
engaged in ANY ANTI-COMPETITIVE [such] act or behavior, the ERC shall stop 
and redress the same. Such remedies shall, without limitation, include the 
imposition of price controls, issuance of injunctions, requirement of divestment or 
disgorgement of excess profits and imposition of fines and penalties pursuant to 
this Act.” 
 
SECTION 23. Sec. 47 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 46. Fines and Penalties. - THE FOLLOWING fines and penalties [that] shall 
be imposed [by the ERC] for any violation of or non-compliance with this Act or the 
IRR:  
 
A. BY 
ANY 
JURIDICAL 
ENTITIES 
ENGAGED 
IN 
THE 
GENERATION, 
TRANSMISSION, DISTRIBUTION AND SUPPLY OF ELECTRICITY, THE FINE 
shall range from a minimum of FIVE HUNDRED [fifty] thousand pesos 
(P500,000.00) [(P50,000.00)] to a maximum of FIVE HUNDRED [Fifty] million 
pesos (P500,000,000.00) [(P50,000,000.000)].  
 
ANY MONETARY FINE AND PENALTY ADJUDGED BY THE ERC BY VIRTUE 
OF THIS PROVISION SHALL BE IMMEDIATELY APPLIED BY THE 
REGULATED ENTITY TO REDUCE THE RATES OF ITS END-USERS.  
 
B. BY ANY PERSON, A FINE OF NOT LESS THAN FIFTY THOUSAND PESOS 
(P50,000.00) 
BUT 
NOT 
MORE 
THAN 
FIFTY 
MILLION 
PESOS 
(P50,000,000.00), OR BY IMPRISONMENT OF NOT LOWER THAN SIX (6) 
YEARS AND ONE (1) DAY AND NOT HIGHER THAN TWELVE (12) YEARS, 
OR BOTH, AT THE DISCRETION OF THE COURT. 
 
WHEN THE ENTITIES INVOLVED ARE JURIDICAL PERSONS, THE PENALTY 
OF IMPRISONMENT SHALL BE IMPOSED ON ITS OFFICERS, DIRECTORS, OR 
EMPLOYEES HOLDING MANAGERIAL POSITIONS, WHO ARE KNOWINGLY 
AND WILLFULLY RESPONSIBLE FOR SUCH VIOLATION.  
 
THE FINES AND PENALTIES MAY BE ADJUSTED TO ITS PRESENT VALUE 
EVERY FIVE (5) YEARS USING THE CONSUMER PRICE INDEX (CPI) AS 
PUBLISHED BY THE PHILIPPINE STATISTICS AUTHORITY. 
 
xxx”  
 
SECTION 24. Sec. 47 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 47. NPC Privatization. - Except for the assets of SPUG, the generation assets, 
real estate, and other disposable assets as well as IPP contracts of NPC shall be 
privatized in accordance with this Act. Within six (6) months from the effectivity of this 
Act, the PSALM Corp shall submit a plan for the endorsement by the Joint 
Congressional Power Commission and the approval of the President of the 
Philippines, on the total privatization of the generation assets, real estate, other 
disposable assets as well as existing IPP contracts of NPC and thereafter, implement 
the same, in accordance with the following guidelines, except as provided for in 
Paragraph (f) herein:  
 
(a) xxx  


17 
 
(b) xxx 
 
(f) The Agus and the Pulangui complexes in Mindanao shall be excluded from 
among the generation companies that will be initially privatized. Their ownership 
shall be transferred to the PSALM Corp. and both shall continue to be operated 
by the NPC OR ANY QUALIFIED THIRD-PARTY AS MAY BE DETERMINED 
BY PSALM CORP. Said complexes may be privatized not earlier than ten (10) 
years from the effectivity of this Act, and except for Agus IlI, shall not be subject 
to Build-Operate-Transfer (B-O-T), Build-Rehabilitate-Operate-Transfer (B-R-O-T 
and other variations thereof pursuant to Republic Act No. 6957, as amended by 
Republic Act No. 7718. The privatization of Agus and Pulangui complexes shall 
be left to the discretion of PSALM Corp. in consultation with DOE [Congress]; 
 
xxx  
 
(j) NPC may generate and sell electricity only from the undisposed generating 
assets and IPP contracts of PSALM Corp. NPC shall not incur any new 
obligations to purchase power through bilateral contracts with generation 
companies 
or 
other 
suppliers, 
EXCEPT 
FOR 
PROVIDING 
POWER 
GENERATION AND ITS ASSOCIATED POWER DELIVERY SYSTEMS IN 
AREAS THAT ARE NOT CONNECTED TO THE TRANSMISSION SYSTEM.  
 
xxx” 
 
SECTION 25. Sec. 57 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 57. Conversion of Electric Cooperatives. - Electric cooperatives are hereby 
given the option to convert into either stock cooperative under the Cooperatives 
Development Act or stock corporation under the REVISED Corporation Code. 
Nothing contained in this Act shall deprive electric cooperatives of any privilege or 
right granted to them under Presidential Decree No. 269, as amended, and other 
existing laws.  
 
THE DOE, IN CONSULTATION WITH THE NEA, THE COOPERATIVE 
DEVELOPMENT AUTHORITY, AND THE SECURITIES AND EXCHANGE 
COMMISSION, SHALL ISSUE THE GUIDELINES FOR THE CREATION OF AN 
EFFICIENT, STREAMLINED AND EXPEDITIOUS MECHANISM FOR THE 
CONVERSION OF ELECTRIC COOPERATIVES. THE NEA, CDA OR THE SEC, 
AS THE CASE MAY BE, SHALL SUFFICIENTLY INFORM THE ELECTRIC 
COOPERATIVE OF THE PRIVILEGES, RIGHTS, BENEFITS AND OBLIGATIONS 
RELATIVE TO ITS DESIRED CONVERSION.  
 
THE ECS MAY ENTER INTO MERGER, CONSOLIDATION, OR ANY OTHER 
INVESTMENT AGREEMENT WITH OTHER ECS ANDIOR PRIVATE ENTITIES 
FOR THE PURPOSE OF IMPROVING THE SERVICE OF THE FRANCHISE AREA. 
THE DOE, IN CONSULTATION WITH NEA AND ERC, SHALL ISSUE 
GUIDELINES FOR THE IMPLEMENTATION OF THIS SECTION, INCLUDING THE 
RULES ON BUSINESS SEPARATION AND UNBUNDLING.”  
 
SECTION 26. Sec. 60 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 


18 
“SEC. 60. Debts of Electric Cooperatives, - xxx  
 
xxx  
 
IN CASE THE ELECTRIC COOPERATIVE IS UNABLE TO FULFILL ITS 
OBLIGATIONS TO ITS CREDITORS DUE TO INSOLVENCY OR BANKRUPTCY, 
SUCH ELECTRIC COOPERATIVE OR ANY INTERESTED PARTY MAY APPLY 
FOR ANY REMEDIES IT MAY DEEM APPROPRIATE PURSUANT TO RA NO. 
10142, OTHERWISE KNOWN AS THE ‘FINANCIAL REHABILITATION AND 
INSOLVENCY ACT OF 2010’.” 
 
SECTION 27. Sec. 61 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 61. Reportorial Requirements. - The DOE shall take the necessary measures 
to ensure that the provisions of this Act are properly implemented and shall submit to 
the JOINT CONGRESSIONAL ENERGY [Power] Commission a semi-annual report 
on the implementation of this Act, on or before the last week of April and October of 
each year.”  
 
SECTION 28. Sec. 62 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 62. Joint Congressional ENERGY [Power] Commission. – [Upon the 
effectivity of this Act, a]THIS congressional commission, hereinafter referred to as 
the ‘JCEC’ [ENERGY COMMISSION]. RENAMED PURSUANT TO REPUBLIC ACT 
NO. 11285 AND FURTHER AMENDED BY REPUBLIC ACT NO. 11571 [is hereby 
constituted. The Power Commission] shall be composed of fourteen (14) 
members the chairmen of the Committee on Energy of the Senate and the House of 
Representatives and six (6) additional members from each House, to be designated 
by the Senate President and the Speaker of the House of Representatives, 
respectively. The minority shall be entitled to pro rata representation but shall have at 
least one (1) representative in the [Power] ENERGY Commission. The Commission 
shall, in aid of legislation, perform the [following] functions PROVIDED IN SECTION 
2 OF RA NO. 11571. [among others:]  
 
SECTION 29. Sec. 63 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 63. Separation Benefits of Officials and Employees of Affected 
Agencies. - National government employees displaced or separated from the 
service as a result of the restructuring of the electricity industry, [AND] 
privatization of NPC assets, OR THE END OF THE CORPORATE 
EXISTENCE OF ANY AFFECTED AGENCY CREATED pursuant to this Act, 
shall be entitled to either a separation pay and other benefits in accordance 
with existing laws, rules or regulations or be entitled to avail of the privileges 
provided under a separation plan which shall be one and one-half month 
salary for every year of service in the government: Provided, however, That 
those who avail of such privilege shall start their government service anew if 
absorbed by any government-owned successor company. In no case shall 
there be any diminution of benefits under the separation plan until the full 
implementation of the restructuring and privatization. 


19 
 
 xxx” 
 
SECTION 30. Sec. 70 of Republic Act No. 9136 is hereby amended to read 
as follows:  
 
“SEC. 70. Missionary Electrification. - xxx  
 
THE NPC IN PERFORMING THIS MANDATE SHALL ADOPT ALTERNATIVE AND 
COST-EFFECTIVE 
TECHNOLOGIES, 
INCLUDING 
RENEWABLE 
ENERGY, 
TOWARDS 
THE 
CESSATION 
OF 
SUBSIDY 
FOR 
MISSIONARY 
ELECTRIFICATION. FURTHER, THE ERC SHALL ISSUE THE GUIDELINES FOR 
THE GRADUATION AND RATIONALIZATION OF UC-ME IN THE OFF-GRID 
AREAS IN CONSIDERATION OF THE COMMERCIAL VIABILITY AND/OR 
INTERCONNECTION TO THE GRID OF SUCH AREA IN A SOCIALLY 
ACCEPTABLE MANNER; PROVIDED, THAT THE FULL PHASE OUT OF UC-ME 
SHALL COMPLETED NO LATER THAN TEN (10) YEARS FROM THE 
DETERMINATION OF ERC.” 
 
SECTION 31. Sec. 71 of Republic Act No. 9136 is hereby amended to read 
as follows: 
  
“SEC. 71. Electric Power Crisis Provision. – [Upon the determination by the 
President of the Philippines of an imminent shortage of the supply of 
electricity, Congress may authorize, through a joint resolution, the 
establishment of additional generating capacity under such terms and 
conditions as it may approve.] 
 
THE PRESIDENT MAY, UPON THE RECOMMENDATION OF THE DOE, ISSUE A 
DECLARATION OF ELECTRIC POWER CRISIS IN TIMES OF CRITICALLY LOW 
ELECTRICITY SUPPLY OR UNUSUALLY HIGH ELECTRICITY PRICES. DURING 
AN ELECTRIC POWER CRISIS, THE DOE SHALL ISSUE TEMPORARY 
MEASURES TO MITIGATE THE IMPACT ON THE CONSUMERS AND OTHER 
INITIATIVES FOR THE EFFICIENT ALLOCATION AND CONSERVATION OF 
ENERGY; PROVIDED, THAT THE EFFECTIVITY OF SUCH ISSUANCES SHALL 
CONTINUE UNTIL THE LIFTING OF THE DECLARATION OF THE ELECTRIC 
POWER CRISIS BY THE PRESIDENT." 
 
SECTION 32. Transitory Clause. – All Retail Supply Contracts existing 
during the effectivity of this Act shall be recognized until their expiration. All RES 
shall renew their licenses based on the guidelines to be issued by the ERC pursuant 
to this Act.  
 
SECTION 33. Repealing Clause. – Section 72 of the EPIRA is hereby 
repealed.  
 
All laws, decrees, rules and regulations, or portion thereof, inconsistent with 
this Act are hereby repealed or modified accordingly. 
 
SECTION 34. Implementing Rules and Regulations. – The DOE shall, in 
consultation with relevant government agencies and all stakeholders, promulgate the 


20 
Implementing Rules and Regulation (IRR) of the Act within six (6) months from the 
effectivity of this Act.  
 
SECTION 35. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
 
Approved,