Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 858 
Introduced by 
PhilRECA Party-List Representative Presley C. De Jesus 
EXPLANATORY NOTE 
The archipelagic nature of the Philippines had always posed a significant 
obstacle to enhancing the transmission and distribution infrastructure required 
for efficient delivery of power supply to end users. While the Electric Power 
Industry Reform Act (EPIRA) of 2001 has been instrumental in promoting 
competition, efficiency, and sustainability in the  power sector, there remains to 
be gaps in terms of delivering cost-efficient and reliable electricity to the end-
users.  As the energy landscape evolves, it is then imperative to amend the EPIRA 
to foster the development of embedded generation in the distribution sector for 
this purpose. 
Embedded generation refers to electricity generation plants directly connected to 
a distribution utilities rather than the transmission network. Essentially, the 
source of power is within or closer to the point of distribution or consumption. 
Unlike traditional power plants that are located far from the users and transmit 
electricity over long distances through the transmission sector, embedded 
generation brings power generation closer to where it is consumed.  
By encouraging the utilization of embedded generation in the distribution sector, 
transmission losses and other losses associated with long-distance electricity 
transport are reduced. Moreover, embedded generation can facilitate the use of 
indigenous renewable energy sources within the community instead of sending 
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them to the grid. Amending the EPIRA to encourage embedded generation in the 
distribution sector is a crucial step towards a more resilient, efficient, and 
sustainable power industry in the country. 
In view of the foregoing, the immediate passage of this measure is urgently 
sought. 
REP. PRESLEY C. DE JESUS 
PhilRECA Party-List  


Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 858 
Introduced by 
PhilRECA Party-List Representative Presley C. De Jesus 
AN ACT 
AMENDING SECTIONS 4 AND 23 OF REPUBLIC ACT NO. 9136, OTHERWISE 
KNOWN AS THE ‘ELECTRIC POWER INDUSTRY REFORM ACT OF 2001 OR 
EPIRA’, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 4 of the EPIRA is hereby amended to read as follows: 
1 
“Section 4. Definition of Terms. – 
2 
 x x x 
3 
(S) “EMBEDDED GENERATORS” REFER TO GENERATING UNITS
4 
THAT ARE INDIRECTLY CONNECTED TO THE GRID THROUGH 
5 
THE 
DISTRIBUTION 
UTILITIES’ 
LINES 
OR 
INDUSTRIAL 
6 
GENERATION FACILITIES THAT ARE SYNCHRONIZED WITH 
7 
THE GRID; 
8 
(t) “End- user" refers to any person or entity requiring the supply 
9 
and delivery of electricity for its own use; 
10 
SECTION 2. Section 23 of the EPIRA is hereby amended to read as follows: 
11 


 
 
 
“Section 23. Functions of Distribution Utilities. – 
1 
 
x x x 
2 
Distribution utilities shall prepare and submit to the DOE their 
3 
annual distributions developments plans. In the case of electric 
4 
cooperatives, such plans shall be submitted through the National 
5 
Electrification Administration. 
6 
ANY GENERATING PLANT TO BE EMBEDDED IN THE DU, 
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UTILIZING RENEWABLE INDIGENOUS ENERGY RESOURCES IN 
8 
THE FRANCHISE AREA OF THE DU, SUBJECT TO OWNERSHIP 
9 
AND MARKET-SHARE LIMITATIONS AS PROVIDED UNDER 
10 
EXISTING LAWS AND REGULATIONS, SHALL BE EXEMPTED 
11 
FROM THE CONDUCT OF COMPETITIVE SELECTION PROCESS, 
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UNLESS IT INTENDS TO SELL GENERATED POWER OUTSIDE 
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OF THE EMBEDDED AREA.  
14 
NO DU SHALL BE ALLOWED TO SOURCE FROM ITS EMBEDDED 
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GENERATING PLANT MORE THAN FIFTY PERCENT (50%) OF 
16 
ITS TOTAL DEMAND, BUT SUCH LIMITATION SHALL NOT 
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PREJUDICE CONTRACTS ENTERED INTO PRIOR TO THE 
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EFFECTIVE DATE OF THE ACT. 
19 
FOR 
THE 
PURPOSE 
OF 
CONSTRUCTING 
EMBEDDED 
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GENERATORS, DUS MAY ENTER INTO JOINT VENTURES AND 
21 
OTHER 
SIMILAR 
AGREEMENTS 
WITH 
GENERATION 
22 
FACILITIES, SUBJECT TO THE GUIDELINES ISSUED BY THE 
23 
ERC.”  
24 
x x x 
25 
SECTION 3. Implementing Rules and Regulations. – The Department of 
26 
Energy (DOE), in consultation with concerned government agencies and 
27 
stakeholders, shall promulgate the Implementing Rules and Regulations 
28 
necessary to carry out and implement the provisions of this Act within sixty days 
29 
(60) from the effectivity of this Act. 
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SECTION 4. Repealing Clause - All laws, presidential decrees, executive 
31 
orders, letters of instruction, administrative rules and regulations or parts 
32 
thereof which are contrary to or inconsistent with the provisions of this Act are 
33 
hereby repealed or modified accordingly. 
34 


 
 
SECTION 5. Separability Clause – Should any part or provision of this Act 
1 
be held unconstitutional or invalid, all other provisions hereof which are not 
2 
affected thereby shall continue to be in full force and effect.  
3 
SECTION 6. Effectivity. – This Act shall take effect after fifteen (15) days 
4 
following its complete publication in the Official Gazette or in two (2) newspapers 
5 
of general circulation whichever is earlier. 
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Approved, 
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