TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No. 1 091
fftsry
25 AUG-7 PI 22
RECEIVE! BY:
Introduced by Senator WIN GATCHALIAN
AN ACT PROHIBITING CROSS OWNERSHIP BETWEEN GENERATION 
COMPANIES AND DISTRIBUTION UTILITIES, AMENDING FOR THE 
PURPOSE SECTION 45 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN 
AS THE "ELECTRIC POWER INDUSTRY REFORMS ACT OF 2001"
EXPLANATORY NOTE
Republic Act No. (RA) 9136, otherwise known as the Electric Power Industry Reform 
Act of 2001, provides that it is the declared policy of the State to ensure affordability 
of electric of the supply of electric power and to ensure transparent and reasonable 
prices of electricity in a regime of free and fair competition.1 However, more than 
twenty (20) years have passed since the enactment of the EPIRA, but the cost of 
electricity in the country remains high. The Philippines has the second highest 
residential rate among the Association of Southeast Asian Nations (ASEAN) at Php 
11.32 per kilowatt-hour (kWh), which is 40.37 % higher than the ASEAN average of 
Php 6.75 per kWh.2 According to a study, these high prices are attributed, among 
other factors, to the "country's uncompetitive market structures."3
At present, there is no prohibition of cross-ownership between generation companies 
(GenCos) and Distribution Utilities (DUs). As a result, there are allegations that terms 
of references (TORs) in the mandated competitive selection process (CSP) for DUs in
1 Section 2(b) of the EPIRA.
2 Global Petrol Prices, https://www.globalpetrolprices.com Accessed on 28 April 2025.
3 Renewables may cut Philippines' electricity rates 30%. Asian Power. Available at https://aslan-power.com/power- 
utility/news/renewables-may-cut-philipplnes-electricity-rates-30. Accessed 8 July 2025.


procuring their power supply are being crafted in a manner more favorable to some 
technologies and/or GenCos.
As such, this bill seeks to level the playing field across all GenCos and to create a more 
competitive environment for the energy industry with the ultimate goal of lowering 
the cost of electricity for the benefit of consumers. Specifically, this bill prohibits any 
GenCo, or its respective subsidiary, affiliate, stockholder, official, or any of their 
relatives within the fourth civil degree of consanguinity or affinity from holding interest 
in any DU and vice versa. Moreover, the measure prohibits any officer, director of a 
GenCo, subsidiary, or affiliate from being an officer or director of a DU or its subsidiary 
or affiliate and vice versa.
Given the foregoing, the immediate passage of this measure is sought.
lUIN GATCHALIAN


.i/V
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
of l!jf ffftarj
25 AUG-7 PI 22
SENATE 
S. B. No. J..Q.91
iVcCLIVEMY:
Introduced by Senator Sherwin Gatchalian
AN ACT PROHIBITING CROSS OWNERSHIP BETWEEN GENERATION 
COMPANIES AND DISTRIBUTION UTILITIES, AMENDING FOR THE 
PURPOSE SECTION 45 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN 
AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001"
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Prohibition on Cross Ownership between Generation Companies
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and Distribution Utilities. — Section 45 of Republic Act No. 9136, otherwise known as
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the Electric Power Industry Reform Act of 2001, is hereby amended to read as follows:
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"SEC. 45. Cross Ownership, Market Power Abuse and Anti-
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Competitive Behavior. No participant in the electricity industry or
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any other person may engage in any anti-competitive behavior
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including, but not limited to, cross-subsidization, price or market
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manipulation, or other unfair trade practices detrimental to the
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encouragement and protection of contestable markets.
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NO GENERATION COPIPANY OR ITS RESPECTIVE
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SUBSIDIARY OR AFFILIATE OR STOCKHOLDER OR
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OFFICIAL OF A GENERATION COMPANY OR ANY OF
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THEIR RELATIVES WITHIN THE FOURTH CIVIL DEGREE
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OF CONSANGUINITY OR AFFINITY, SHALL BE ALLOWED


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TO HOLD ANY INTEREST, DIRECTLY 
OR
INDIRECTLY, IN ANY DISTRIBUTION UTILITY. 
LIKEWISE, NO DISTRIBUTION UTILITY OR ITS 
RESPECTIVE SUBSIDIARY OR AFFILIATE OR 
STOCKHOLDER, OR OFFICIAL OF A DISTRIBUTION 
UTILITY OR ANY OF THEIR RELATIVES WITHIN THE 
FOURTH CIVIL DEGREE OF CONSANGUINITY OR 
AFFINITY, SHALL BE ALLOWED TO HOLD ANY INTEREST, 
DIRECTLY OR INDIRECTLY, IN ANY GENERATION 
COMPANY. NO PERSON WHO IS AN OFFICER OR 
DIRECTOR OF THE GENERATION COMPANY OR ITS 
RESPECTIVE SUBSIDIARY OR AFFILIATE SHALL BE AN 
OFFICER OR DIRECTOR OF ANY DISTRIBUTION UTILITY 
OR ITS RESPECTIVE SUBSIDIARY OR AFFILIATE, AND 
VICE VERSA.
X X X."
SECTION 2, Transitory Provision. — Any generation company, or its respective 
subsidiary or affiliate or stockholder or official of a generation company or any of their 
relatives within the fourth civil degree of consanguinity or affinity holding an interest 
in any distribution utility, and vice versa, at the time of the passage of this Act, shall 
be required to divest from the same within three (3) years from the effectivity of this 
Act's implementing rules and regulations.
SECTION 3. 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.


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SECTION 4. Separability Clause. - If for any reason, any provision of this Act 
is declared invalid or unconstitutional, the other provisions not affected thereby shall 
remain in full force and effect.
SECTION 5. Repealing Clause. - All laws, executive orders, issuances, decrees, 
rules and regulations inconsistent with or contrary to the provisions of this Act are 
hereby amended, modified, and repealed accordingly.
SECTION 6. Effectivity. - This Act shall take effect fifteen days (15) after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,