DOE Comments/Recommendations to Various House Bills

House Bill (HB) Provision of the HB Proposed Revision Rationale/Comments

No./Title/Author
HB03432, Rep. Presley 1 SECTION 1. Section 31
De Jesus, Sergio of the EPIRA is hereby
Dagooc amended to read as follows:

An Act Amending “Section 31. Retail Competition

Section 31 of Republic and Open Access. –
Act no, 9136, Otherwise
Known as the “Electric xxx
Generally, the DOE poses no
Power Industry Reform objection on the proposed
Act of 2001 or EPIRA”, Subsequently and every year
thereafter, the ERC shall amendments to the EPIRA,
and for Other Purposes. however, we would like to
evaluate the performance of the
market. On the basis of such reiterate that measures to
evaluation, it shall gradually protect the DUs and the
reduce the threshold level until suppliers in the migration of
it reaches the household contestable customers to RCOA
demand level. In the case of are already provided upon the
electric cooperatives, retail existing rules and policies.
competition and open access
shall be implemented not earlier
than five (5) years upon the
effectivity of this Act: Provided,
That the load requirement of
any end-user, who previously
received their supply of
electricity from a distribution
utility (DU) and
chooses to avail the
Retail Competition and Open
Access, shall be
automatically deducted from
the total load contracted by
 DOE Comments/Recommendations to Various House Bills

House Bill (HB) Provision of the HB Proposed Revision Rationale/Comments

No./Title/Author
the DU in its power supply
contract with power
suppliers: Provided, further,
That the affected power
supplier of the DU shall be
given the right to match or
tender a lower offer for the
load lost.
HB 03431, Reps. Sergio General Comment
Dagooc and Presley De
Jesus The DOE defers to the wisdom
of the proponents relative to the
An Act Institutionalizing allowable System Loss
the Rules on System Recovery cap to be applied to
Loss Cap of Electric the Distribution Utilities.
Distribution Utilities,
Amending for the
Purpose Republic Act
No. 7832 and Republic
Act No. 9136
HB 02964, Rep. Joey General Comments
Sarte Salceda
The DOE poses no objection on
An Act Enhancing The the provisions of the proposed
Governance Structure Act to enhance the governance
Of The Energy structure of the Energy
Regulatory Commission Regulatory Commission (ERC).

HB 3430, Reps. Sergio SEC. 45. Cross Ownership, SEC. 45. Cross Ownership,
C. Dagooc, Presly C. Market Power Abuse and Anti- Market Power Abuse and Anti-
De Jesus Competitive Behavior. – Competitive Behavior. –
 DOE Comments/Recommendations to Various House Bills
House Bill (HB) Provision of the HB
No./Title/Author
An Act Amending xx
Section 45 of Republic
Act No. 9136, Otherwise a) No company or related group
known as the “Electric can own, operate or control
Power Industry Reform more than thirty percent (30%)
Act of 2001 or EPIRA” fifteen percent (15%) of the
and for Other Purposes installed generating capacity of
a grid and/or twenty-five percent
(25%) of the national installed
generating capacity. “Related
group” includes a person’s
business interests, including its
subsidiaries, affiliates, directors
or officers or any of their
relatives by consanguinity or
affinity, legitimate or common
law, within the fourth civil
degree;
HB 03601, Rep. Ralph Xxx
Wendell P. Tulfo, Rep.
Jocelyn P. Tulfo (t) Perform such other
regulatory functions as are
An Act Removing the appropriate and necessary in
Public Offering order to ensure the successful
Requirement of restructuring and modernization
Generation Companies, of the electric power industry,
Amending for the such as, but not
Purpose Section 43 (T) limited to, the rules and
of republic Act No. guidelines under which
Proposed Revision
xx
a) No company or related group
can own, operate or control more
than thirty percent (30%) fifteen
percent (15%) of the installed
generating capacity of a grid
and/or twenty-five fifteen percent
(25%) (15%) of the national
installed generating capacity.
“Related group” includes a
person’s business interests,
including its subsidiaries,
affiliates, directors or officers or
any of their relatives by
consanguinity or affinity,
legitimate or common law, within
the fourth civil degree;
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 companies,
Rationale/Comments
The DOE would like to clarify
the basis of reducing the
allowable limit of capacity
ownership per grid by
generation companies. In this
regard, it is suggested that a
thorough study be conducted in
order to ensure that there will be
no adverse impact to the
investments in the generation
sector. Further, it is also
recommended for the Energy
Regulatory Commission and
the Philippine Competition
Commission to be more
proactive in securing the
compliance of the industry
participants to the requirements
of the law.
The DOE proposes to retain the
original provision of the EPIRA
to allow power generation
companies to publicly list as this
will help these companies raise
substantial amounts of capital
and subsequent funding to fund
general corporate operations,
growth opportunities, R&D,
 DOE Comments/Recommendations to Various House Bills

House Bill (HB) Provision of the HB Proposed Revision Rationale/Comments

No./Title/Author
9136, As Amended, [generation companies], distribution utilities which are not marketing, and capital
Otherwise known as the distribution utilities which are publicly listed shall offer and sell expenditures which could be
Electric power Industry not publicly listed shall offer and to the public a portion not less used for further expansion of
Reform Act of 2001” sell to the public a portion not than fifteen percent (15%) of their their power generation facilities.
less than fifteen percent (15%) common shares of stocks:
of their common shares of Provided, however, That The IPO process maybe lengthy
stocks: Provided, however, That generation companies, and time-consuming as
[generation companies,] distribution utilities or their mentioned by the proponent
distribution utilities or their respective holding companies which may take two years
respective holding companies that are already listed in the PSE before an initial public offering in
that are already listed in the are deemed in compliance. For the public market. However, an
PSE are deemed in compliance. existing companies, such public early compliance by these
For existing [companies,] offering shall be implemented not mandated entities will help to
DISTRIBUTION UTILITIES later than five (5) years from the comply the required process.  
such public offering shall be effectivity of this Act. New
implemented not later than five companies shall implement their
(5) years from the effectivity of respective public offerings not
this Act. New [companies] later than five (5) years from the
DISTRIBUTION UTILITIES issuance of their certificate of
shall implement their respective compliance; and
public offerings not later than
five (5) years from the issuance
of their certificate [of
compliance] OF PUBLIC
CONVENIENCE AND
NECESSITY; and