Amending Sec. 73 of R. a. No. 9136, Electric Power Industry Reform Act of 2001

Senate Office of the Secretarp TWENTIETH CONGRESS OF THE) REPUBLIC OF THE PHILIPPINES ) 26 MAY -6 A10:10 First Regular Session SENATE S.B. No. 2112 RECEIVED BY Introduced by SENATOR IMEE R. MARCOS AN ACT AMENDING SECTION 73 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001," AS AMENDED, AND FOR OTHER PURPOSES EXPLANATORY NOTE Article II, Section 9 of the Constitution provides that the "State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life of all." Since the implementation of Republic Act No. 9136, or the "Electric Power Industry Reform Act of 2001" ', electricity prices have steadily risen. Part of it is due to the cross-subsidies that are being paid for by end-consumers. The higher price of electricity exerts upward pressure on inflation along with the geopolitical uncertainty associated with the Iran War. In addition, various customers of the Manila Electric Company (Meralco) already expressed outrage on social media over higher electric bills in April 2026 due to the Lifeline Rate Subsidy Program (LRSP) of the government. Given the current situation of the country, there is a need for immediate government intervention. As a means of easing financial burden, this measure proposes to make the national government and private distribution utilities equally liable to shoulder the cost of implementation of lifeline subsidies provided to marginalized sectors under Republic Act No. 9136, as amended. In view of the foregoing, the immediate passage of this bill is earnestly sought. Imee h. Mara IMEE R. MARCOS

Sentate Office of the Secretary TWENTIETH CONGRESS OF THE) REPUBLIC OF THE PHILIPPINES ) ) First Regular Session MAY -6 A10:10 SENATE S.B. No. - 2112 RECEIVED BY Introduced by SENATOR IMEE R. MARCOS AN ACT AMENDING SECTION 73 OF REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE "ELECTRIC POWER INDUSTRY REFORM ACT OF 2001," AS AMENDED, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Section 73 of Republic Act No. 9136, otherwise known as the

"Electric Power Industry Act of 2001," as amended, is hereby further amended to read as follows: "SEC. 73. Lifeline Rate. - In order to provide assistance to electricity consumers, especially those living below the poverty line, and to achieve a more equitable distribution of the lifeline subsidy, a socialized pricing mechanism called a lifeline rate for qualified marginalized end-users shall be set by the ERC which shall be exempted from the cross subsidy phase-out under this Act for a period of fifty (50) years, unless otherwise extended by law. The level of consumption, subsidy, and rate shall be determined by the ERC after due notice and hearing: Provided, That the ERC shall primarily utilize data from the Philippine Statistics Authority (PSA) in the determination of the level of consumption; PROVIDED FURTHER, THAT THE COST OF IMPLEMENTATION FOR THE LIFELINE RATE GRANTED UNDER THIS SECTION SHALL BE SHOULDERED EQUALLY BY THE NATIONAL GOVERNMENT, THROUGH APPROPRIATIONS UNDER THE GENERAL APPROPRIATIONS ACT, AND BY THE PRIVATE DISTRIBUTION UTILITIES CONCERNED, ON A FIFTY-FIFTY (50-50) BASIS; PROVIDED FURTHERMORE, THAT IN NO CASE SHALL THE COST OF SUCH DISCOUNT BE PASSED ON, DIRECTLY OR INDIRECTLY, TO THE END-CONSUMERS THROUGH RATES, FEES, CHARGES, OR ANY FORM OF TARIFF ADJUSTMENT. XXX XXX XXX"

Sec. 2. Implementing Rules and Regulations. - The Energy Regulatory

Commission, together with the Department of Energy and Department of Social Welfare and Development, in consultation with other public and private stakeholders, shall promulgate the implementing rules and regulations of this Act within ninety (90) days from its effectivity.

Sec. 3. Separability Clause. - If, for any reason, any provision of this Act or

any part thereof shall be held unconstitutional and invalid, the other parts or provisions of this Act, which are not affected thereby, shall remain in full force and effect.

Sec. 4. Repealing Clause. - All laws, decrees, orders, rules and regulations or

parts thereof inconsistent with any of the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 5. Effectivity. -This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,