''civt,K<A-i- 'o!Dffirp of ti»t .€;: t ;. UT
NINETEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
Senate Bill No.____
217
72 JUL-7 P5 ^8
RHCtIVtD BY.
Introduced by: SENATOR RAFFYT. TULFO
AN ACT REMOVING THE PUBLIC OFFERING REQUIREMENT OF 
GENERATION COMPANIES, AMENDING FOR THE PURPOSE SECTION 43(T) 
OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE ELECTRIC 
POWER INDUSTRY REFORM ACT OF 2001
EXPLANATORY NOTE
Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 ("EPIRA7'), 
requires generation companies which are not publicly listed to offer and sell to the 
public at least 15% of their common shares of stock "to ensure the successful 
restructuring and modernization of the electric power industry" C'Public Offering 
Requlrement,0.
EPIRA, however, also provides that the generation sector shall be competitive and 
open, considering that power generation is not considered as a public utility operation. 
Likewise, EPIRA aims to broaden the ownership base of the power generation sector. 
In furtherance of these objectives, any unnecessary barriers to entry must be 
removed.
The aforementioned Public Offering Requirement is an institutional barrier to entry 
that no longer serves its purpose inasmuch as the electric power Industry has already 
been restructured and modernized in light of recent regulatory developments in the 
energy sector. The Public Offering Requirement has proved to be an impediment to 
small and medium sized companies due to the costs involved in, and the cumbersome 
process of, public offering.


To encourage and lure the much needed investments in the generation sector, 
particularly in the space of renewable energy, it is crucial to eliminate the Public 
Offering Requirement. The removal thereof will serve to promote competition and 
encourage market development by allowing new entrants in the market, in line with 
EPIRA's purpose of having a competitive and open generation sector. Moreover, the 
new entrants in the market will definitely broaden the ownership base of the power 
generation sector.
Considering the irrelevance of the Public Offering Requirement and the need for a 
more open and competitive generation sector, the Public Offering Requirement which 
has become an unnecessary institutional barrier to entry must therefore be eliminated.
In view of the foregoing, the immediate passage of this measure is earnestly sought.
isniba Tulfo 
inator


4 S7?Kil<r-‘
of (i)c £‘»£r-'i.in’
NINETEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
Senate Bill No.
2
’22 JUL-7 P5:48
RtCEIVtDEV
Introduced by: Senator Raffy T. Tulfo
AN ACT REMOVING THE PUBLIC OFFERING REQUIREMENT OF 
GENERATION COMPANIES, AMENDING FOR THE PURPOSE SECTION 43(T) 
OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE ELECTRIC 
POWER INDUSTRY REFORM ACT OF 2001
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Be It enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Removal of Public Offering Requirement of Generation Companies. - 
Section 43(t) of Republic Act No. 9136, otherwise known as the Electric Power Industry 
Reform Act of 2001, 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 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:
XXX
(t) Perform such other regulatory functions as are appropriate and necessary 
in order to ensure the successful restructuring and modernization of the electric 
power industry, such as, but not limited to, the rules and guidelines under 
which [generation componios] distribution utilities which are not publicly 
listed shall offer and sell to the public a portion not less than fifteen percent 
(15%) of their common share of stocks: Provided, however, That 
[generation-companies] distribution utilities or their respective holding 
companies that are already listed in the PSE are deemed in compliance. For


existing [companies]DISTRIBUTION UTILITIES, such public offering shall 
be implement^ not later than five (5) years from the effectivity of this Act.
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New [companies] DISTRIBUTION UTILITIES shall implement their 
respective public offerings not later than five (5) years from the issuance of
their certificate [of.complianee]- OF PUBLIC CONVENIENCE AND
NECESSITY; and
X X X.”
SECTION 2. Implementing Rules and Regulations. - The Energy Regulatory 
Commission shall, in consultation with the Department of Energy, other relevant 
government agencies, the electric power industry participants, consumers, and other 
public and private stakeholders, promulgate the Implementing Rules and Regulations 
of the Act within ninety (90) calendar days from its effectivity.
SECTION 3. Separability Clause. - If, for any reason, any provision of this Act is 
declared to be unconstitutional or invalid, the other sections or provisions hereof which 
are not affected thereby shall continue to be in full force or effect.
SECTION 4. Repealing Clause. - 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, amended or modified accordingly.
SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in national newspaper of general circulation.
Approved,