Energy Advocacy Counsel Act

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session ) ML 14 AI1 :08 SENATE S. No. _ Introduced by Senator Francis G. Escudero AN ACT PROVIDING FOR THE NATIONAL POLICY AND FRAMEWORK FOR ENERGY ADVOCACY, CREATING THE ENERGY ADVOCACY COUNSEL OFFICE AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE The passage of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 provided for a liberalized, private sector-driven energy sector in the Philippines. While the EPIRA law directs the Energy Regulatory Commission to promote consumer interest, consumers and end-user representation remains limited particularly on matters involving performance standards and retail rates, among others. Hence this bill, inspired by House Bill No. 2152 filed by Representatives Dagooc and De Jesus and Senate Bill No. 156 filed by Senator Gatchalian in the Nineteenth Congress, seeks to create and organize the Energy Advocacy Counsel Office (EACO) to represent end-users in energy-related cases and proceedings before any government agency. It is submitted that through the powers and functions to be exercised by the EACO, the welfare and interest of energy consumers would be advanced, well-represented and upheld. Given the above premises, consideration and approval of this bill is respectfully requested. FRANCIS G. ESCUDERO

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 14 All :08 SENATE S. No. _ Introduced by Senator Francis G. Escudero AN ACT PROVIDING FOR THE NATIONAL POLICY AND FRAMEWORK FOR ENERGY ADVOCACY, CREATING THE ENERGY ADVOCACY COUNSEL OFFICE AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Energy Advocacy

2 Counsel Act.

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

4 recognize the right of end-users to reasonable rates, adequate and reliable electricity 5 services, and transparent processes involving such rates and services. Towards this 6 end, there shall be established an independent end-user representation in rate-setting, 7 rule-making, and other energy-related cases and proceedings before government 8 agencies, including administrative, judicial and quasi-judicial bodies. The State shall also encourage the active participation of non-profit, non-stock 10 and non-political associations or entities or individuals in the rate-setting processes of 11 the energy regulator and recognize the need for active participation of the said organizations.

Sec. 3. Energy Advocacy Counsel Office. - The Energy Advocacy Counsel Office

14 (EACO) is hereby created as an independent and autonomous office attached to the 15 Department of Justice (DOJ) for purposes solely of policy direction and coordination

1 in accordance with Section 38(3), Chapter 7, Book IV of Executive Order No. 292, 2 otherwise known as the "Administrative Code of 1987", as amended.

Sec. 4. Powers and Functions. - The EACO shall be a public legal office

4 mandated to represent all captive market electricity end-users in the energy sector in 5 all matters affecting the public interest before any department, commission, agency, 6 quasi-judicial body or court requiring the services of a lawyer. It shall independently 7 discharge its mandate towards the best interest of all end-users, ensuring least cost without compromising safety, reliability, efficiency and accessibility of electricity. As 9 used in this Act, an end-user shall refer to any captive individual, natural or juridical, 10 requiring the supply and delivery of electricity for his, her or its own use. Towards this end, the EACO shall exercise the following powers and functions: (1) Initiate, intervene, and represent all end-users, in the following: (a) Rate-setting, rule-making, and other energy-related cases, complaints, proceedings, and consultations regarding, but not limited to, electric generation, transmission and distribution projects, as well as power supply agreement applications, before the Department of Energy (DOE), Energy Regulatory Commission (ERC), National Electrification Administration (NEA), Philippine Competition Commission (PCC), and other judicial and quasi- judicial bodies. Nothing in this section shall mean to diminish the primary and exclusive jurisdiction of the NEA in the exercise of its disciplinary authority over erring officers of electric cooperatives under PD No. 269, as amended by Republic Act No. 10531, otherwise known as the "NEA Reform Act of 2013"; and (b) Actions before any trial or appellate court, including the Supreme Court, which involve the validity of any decision, memoranda, rule, regulation, circular, or order of the DOB, ERC, NEA, PCC, and other departments, commissions, and agencies insofar as such decisions and policy issuances affecting electricity rates and services;

(2) Monitor all issuances, acts and omissions of the DOE, ERC, NEA, PCC, and 2 other departments, commissions, and agencies, and formulate and issue the necessary comments or legal memoranda insofar as such decisions affect electricity rates and electric services; (3) Evaluate and act upon a valid request and complaint from end-users 6 concerning the matters set forth in items (1) and (2). The initiation or continuation of any proceedings shall be in the sole discretion of the EACO; (4) Conduct investigations, initiate studies, undertake researches, present 9 comments and testimonies before governmental bodies, issue reports, and engage in regular information, education, and communication programs for all end-users on laws, rules, regulations, decisions, circulars, and orders that affect electricity rates and 12 services, including end-user rights and remedies; (5) Consult directly with end-users on a regular basis in order to determine the concerns of end-users with respect to electricity rates; (6) Be furnished or served, as the case may be, by departments, commissions, and agencies with all pertinent documents, notices, petitions, applications, complaints, answers, motions, and other pleadings in all related cases, complaints, proceedings, and consultations involving rate-settings and electric services; (7) Have the right to access, free of charge, all files, records, and documents in the DOE, ERC, NEA, PCC and other departments, commissions, and agencies 21 pertaining to energy-related cases, complaints, proceedings, and consultations: Provided, That the files, records, and documents do not pertain to the following: (a) Personnel information or any information that may violate Republic Act No. 10173, otherwise known as the "Data Privacy Act of 2012"; (b) Confidential communication between commissioners, judges, or justices and general counsels on records relating to proceedings in which the EACO is a party to; and (c) Confidential information and privileged communication declared as such by the ERC, the PCC and other relevant departments, commissions and agencies.

EACO lawyers shall have the authority to administer oaths in connection with the performance of their duties in accordance with the Rules of Notarial Practice and other relevant issuances.

Sec. 5. Free Legal Representation. - The EACO shall, in the independent and

autonomous discharge of its mandate, render, free of charge, legal representation, assistance, and counselling to all end-users in cases falling under Section 4(1) of this 7 ACt.

Sec. 6. Composition of Energy Advocacy Counsel Office. - The EACO shall be

9 headed by the Energy Advocacy Counsel (EAC), who shall have the primary authority 10 and responsibility for the effective exercise of its mandate and the discharge of its 11 powers and functions, and shall be assisted by three (3) Deputy Energy Advocacy 12 Counsels. In case of temporary absence of the EAC, a Deputy EAC shall be designated 13 as the Officer-in-Charge of the EACO. The EAC shall be a natural-born citizen of the Philippines, at least thirty-five (35) years of age, with at least seven (7) years of practice in law, energy or finance, and with proven competence, integrity, probity, and independence. The Deputy EACs shall be natural-born citizens of the Philippines, at least thirty- 18 five (35) years of age, with at least four (4) years of practice in law, energy, or finance 19 and with proven competence, integrity, probity, and independence. No person, who has been a board member, officer, employee, consultant or an 21 affiliate of any energy company in any manner or capacity for at least two (2) years prior to appointment, shall be appointed as EAC or Deputy EAC.

Sec. 7. Appointment, Term and Rank. - The EAC and Deputy EACs shall be

appointed by the President. The EAC shall be co-terminus with the President, while the Deputy EACs shall serve for a term of six (6) years and may be reappointed. The EAC and Deputy EACs shall have the same rank, salaries, allowances, and retirement benefits as the Prosecutor General and Senior Deputy State Prosecutor of the National Prosecution Service, respectively: Provided, That their retirement benefits shall be pro-rated in accordance with Section 21 of Republic Act No. 10071, otherwise known as the "Prosecution Service Act of 2010".

Sec 8. Prohibitions. — The EAC and Deputy EACs shall be prohibited from:

(1) Serving as a member of the Board, officer, employee, or consultant of 3 any energy company in the course of their respective terms of office: Provided, That such prohibition shall also apply to their relatives up to the third civil degree of 5 consanguinity or affinity; (2) Having any interest, ownership, or stake in any energy company in the 7 course of their respective terms of office: Provided, That such prohibition shall also 8 apply to their relatives up to the third civil degree of consanguinity or affinity; (3) Being members of a political party or committee, or engaging in any 10 partisan political activity in the course of their respective terms of office; and (4) Engaging in any energy-related businesses within two (2) years after 12 relinquishing the post from any reason thereof. In cases where any of the foregoing acts is done in collusion with private 14 individuals or corporations, the private individuals or corporations shall likewise be 15 liable for the offense. In addition, the public officer and private individual or corporation involved shall 17 suffer the penalty of temporary disqualification from public office for a period of three 18 (3) years upon conviction and permanently disqualified from transacting in any 19 energy-related business with the government, respectively. Private individuals, including public officers, who commit any of the aforementioned acts, or conspires with them, shall suffer the penalty of prisión mayor as defined under Chapter Three, Section One, Article 27, of Republic Act No. 3815, otherwise known as "The Revised Penal Code", , as amended.

Sec. 9. Organizational Structure and Plantilla Position. - The DOJ shall submit

the EACO's temporary organizational structure and plantilla positions to the Department of Budget and Management (DBM) not later than six (6) months from the effectivity of this Act. The EACO may, in consultation with the DOJ, request the DBM for any changes in the organizational structure and plantilla positions after a comprehensive review resulting to a finding that such alteration shall improve the discharge of the EACOS

1 powers and functions: Provided, That the DBM shall render a decision on such request 2 within six (6) months from its submission. The EACO shall have legal, technical, and administrative personnel in its 4 organizational structure and staffing complement, and may hire consultants as expert 5 witnesses or technical advisors as it may find necessary for the full and efficient 6 discharge of its powers and functions. All employees and consultants shall be subject 7 to civil service laws, rules, and regulations: Provided, That the salaries of ali employees 8 shall be subject to Republic Act No. 11466, otherwise known as the "Salary 9 Standardization Law of 2019".

Sec. 10. Removal and Vacancy. - The EAC and Deputy EACs shall not be

11 removed or suspended, except for cause provided by law. The President may remove the EAC or Deputy EACs for malfeasance, misfeasance, or nonfeasance in office, or for any reason which renders any of them ineligible for appointment, incapable, or 14 unfit to discharge the mandate, powers, and functions of the EACO. In case of death, permanent incapacity, removal, or resignation of the incumbent EAC or Deputy EACs, the President may appoint or designate one, as the 17 case may be, in an acting capacity until a new EAC or Deputy EAC has been appointed: Provided, That the new appointment shall only be for the unexpired term of the 19 predecessor.

Sec. 11. Exemption from Fees and Costs of Suit. - The EACO shall be exempt

21 from the payment of docket and other fees to court and other quasi-judicial bodies.

Sec. 12. Contingent Fees and Costs of Suit. - Contingent fees such as the award

of the costs of the suit, attorney's fees, and other similar fees imposed against adversarial parties of the EACO after a successful litigation shall be deposited in the National Treasury.

Sec. 13. Franking Privileges. - The EACO is hereby granted the franking

27 privilege: Provided, That such privilege shall only be used to assist and expedite the conduct of official businesses, activities and duties of the EACO, and shall not be utilized for personal other non-official purposes.

Sec. 14. Appropriations. - The amount necessary for the effective

2 implementation of the provisions of this Act shall be included in the annual General 3 Appropriations Act.

Sec. 15. Implementing Rules and Regulations. - Within ninety (90) calendar

5 days from the approval of this Act, the DO] shall, in consultation with the DBM, 6 government energy agencies, and private energy stakeholders, adopt and issue the rules and regulations for the effective implementation of this Act.

Sec. 16. Separability Clause. - If any provision or part hereof is declared

9 unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in full force and effect.

Sec. 17. Repealing Clause. - All laws, acts, decrees, executive orders,

issuances, and rules and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby repealed, amended or modified accordingly.

Sec. 18. Effectivity. - This Act shall take effect immediately following its

15 publication in the Official Gazette or in at least two (2) newspapers of general 16 circulation. Approved,