Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No.  ________________ 
Introduced by  
Representative Mujiv S. Hataman 
PHILRECA Party-List Representative Presley C. De Jesus 
APEC Party-List Representative Sergio C. Dagooc 
EXPLANATORY NOTE 
Basilan Electric Cooperative, Inc. (BASELCO) has been the power 
customer of the National Power Corporation (NPC) since 1989. For the period 
covering September 1999 to March 2024, BASELCO has accumulated a total 
billing amounting to Php 7.212 Billion with Php 4.901 Billion representing 
the principal obligation and Php 2.311 Billion representing interest charges. 
In the same time span, BASELCO was able to pay NPC a total amount 
of Php 3.335 Billion. NPC’s Credit and Collection Policy provides that 
payments shall be applied first to the most onerous account. Thus, of the 
3.335 Billion total payment of BASELCO, Php 2.292 Billion was applied to the 
incurred interest charges and only Php 1.043 Billion was applied to the 
principal obligation. The enormous amount of interest charges that has 
accumulated throughout the years resulted in BASELCO’s payment being 
applied mostly to interest charges. This significantly renders the payment of 
the outstanding principal obligation extremely difficult for BASELCO, which 
in turn affects BASELCO’s capacity to provide efficient services for its 
consumer. As of October 2024, the total amount paid by BASELCO which was 
applied to interest payments amounted to Php 2.460 Billion.  
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November 11, 2024
11:16 am




Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No.  ________________ 
Introduced by  
Representative Mujiv S. Hataman 
PHILRECA Party-List Representative Presley C. De Jesus 
APEC Party-List Representative Sergio C. Dagooc 
AN ACT 
FOR THE CONDONATION OF UNPAID INTERESTS, PENALTIES, 
SURCHARGES, AND UNREMITTED UNIVERSAL CHARGES ON THE 
OVERDUE OBLIGATIONS OF THE BASILAN ELECTRIC COOPERATIVE, 
INC. TO THE NATIONAL POWER CORPORATION 
Be it enacted by the Senate and the House of Representatives of the Republic 
of the Philippines in Congress assembled: 
SECTION 1. All accumulated interests, surcharges, penalties and universal 
charges on the principal obligations incurred by the Basilan Electric 
Cooperative, Inc. (BASELCO) to the National Power Corporation (NPC), 
beginning from the year 1999 until the effectivity of this Act, are hereby 
condoned, thereby perpetually relieving BASELCO from the payment of said 
interests, surcharges and penalties. The amount paid by BASELCO in the 
sum of Two Billion Four Hundred Sixty Million Seven Hundred Eighty-Seven 
Thousand Four Hundred Seventy-Seven Pesos and Seven Centavos (Php 
2,460,787,477.07), of such accumulated interests, surcharges, and penalties, 
shall be applied to and deducted from the principal obligation of BASELCO. 
SEC. 2. A one-time restructuring program is hereby authorized to be adopted 
by the NPC in favor of BASELCO over their unpaid principal obligations; 
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Provided, That once a staggered payment scheme shall have been adopted 
between BASELCO and the NPC on the principal obligations, BASELCO shall 
regularly submit to NPC their performance improvement programs and the 
status of their implementation.  
SEC. 3. Within sixty (60) days from the effectivity of this Act, NPC shall, in 
coordination with the National Electrification Administration, promulgate the 
necessary rules and regulations for the effective implementation of this Act. 
Taking into account the legislative intent to authorize the condonation of 
interests, surcharges, penalties and universal charges and the one-time 
restructuring program, the said rules and regulations shall not entail 
additional requirements that shall negate the purpose of this Act; Provided, 
That subject to BASELCO’s circumstances, NPC shall be empowered to 
determine the guidelines on which BASELCO is eligible to request for 
condonation and shall further require BASELCO to submit a Performance 
Improvement Plan to ensure payment compliance: Provided, further, That the 
failure of the NPC to promulgate the said rules and regulations shall not 
prevent the implementation of this Act sixty days after its effectivity.  
SEC. 4. If any provision of this Act is declared unconstitutional or invalid, the 
other parts or provisions hereof which are not affected thereby shall continue 
to be in full force and effect. 
SEC. 5. All laws, decrees, executive orders and issuances, rules and 
regulations, or parts thereof inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SEC. 6. This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
Approved,