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SEVENTEENTH CONGRESS OF TH E )
REPUBLIC OF THE PH ILIPPINES ) *17 JUN15 All:19
Second R egular S ession )

SENATE kLLt.iVi. • X

S e n a te Bill No. .14n

I n tr o d u c e d b y S e n . W in G a tc h a lia n

AN ACT
ENHANCING THE GOVERNANCE STRUCTURE OF THE ENERGY
REGULATORY COMMISSION

EXPLANATORY NOTE

The e n a c tm e n t of R epublic Act 9 1 3 6 c arried w ith it th e u n b u n d lin g

of th e pow er sector. G eneration, tra n sm issio n , d istrib u tio n , a n d supply
were privatized. N evertheless, d istrib u tio n a n d tra n sm issio n w ere
declared public utilities. T heir regulation, w hich in clu d es perform ance,
recoverable c o sts, a n d allow able m arg in s, fell u p o n th e Energy
R egulatory C om m ission (ERC).

ERC, a s th e regulator, h a s a definitive role in safeg u ard in g the

in te re sts of th e p u b lic .1 As su c h , its governance s tru c tu re sh o u ld foster
in d ep en d en ce, tra n sp a re n c y , a n d acco untability. An evaluation of ERC’s
governance s tru c tu re u sin g b e st p ractice principles for regulatory policy
a n d even th e c o u n try ’s Code of C orporate G overnance for Publicly Listed
C o m p anies show s a re a s for im provem ent. An exam ple is th e se p a ra tio n
of th e C h a irp e rso n a n d C hief Executive Officer fu n ctio n s, w hich is
n e ce ssa ry to “foster a n a p p ro p ria te b alan ce of pow er, in creased
acco u n tab ility , a n d b e tte r cap acity for in d e p e n d e n t decisio n -m ak in g .”2

It is in th is light th a t th is m e a su re is proposed. T his bill a im s to

e n h a n c e th e existing governance s tru c tu re of th e ERC by providing (1)
a d d itio n al q ualifications a n d req u ire m e n ts for ERC C om m issioners to
e n su re bo ard diversity; (2) pro h ib itio n s a n d disq u alificatio n s for ERC
C o m m issioners a n d th e ir relatives to p revent conflicts of in terest; (3) th e
se p ara tio n of the C h a irp e rso n a n d CEO fu n ctio n s to a s s u re a b a lan ce of
power; (4) defined d u tie s a n d resp o n sib ilities of th e C h a irp erso n , th e
C om m ission, a n d th e Executive D irector to in crease invididual a n d board

1 OECD (2014). The Governance of Regulators. OECD Best Practice Principles for Regulatory Policy OECD
Publishing, http://dx.doi.org/10.1787/9789264209015-en
2 SEC Memorandum Circular No. 19, Series of 2016. Code of Corporate Governance for Publicly-Listed
Companies. 22 November 2016.
acco u ntability; (5) open m eetings d u rin g d e lib eratio n s of th e C om m ission
to g u a ra n te e public tra n sp a re n c y ; (6) a cc e ss to inform ation to e n h a n c e
know ledge a n d e d u ca tio n on regulatory m a tte rs affecting public welfare;
a n d (7) liabilities for violation of, am ong o th e rs, open m eeting a n d acc ess
to inform ation provisions.

OECD (2012) reco m m en d s th a t c o u n trie s “develop a c o n siste n t

policy covering th e role a n d fu n ctio n s of regulatory agencies in o rd er to
provide g reater confidence th a t regulatory decisions are m ade on a n
objective, im partial, a n d c o n siste n t b a sis, w ith o u t conflict of in te rest,
b ias or im proper influence.”3 It is th e hope of th e a u th o r th a t th ese
objectives be fulfilled w ith th e e n a c tm e n t of th is bill into law. T h u s, th e
im m ediate p a ssa g e of th is m e a su re is sought.

N g a tc h al :

3 OECD (2012). Recximmendation of the Council on Regulatory Policy and Governance. OECD Publishing
 o ' t lK ^ '- I 'l i*

SEVENTEENTH CONGRESS ) '17 JUN15

REPUBLIC OF THE PHILIPPINES )
Second Regular Session )
K L ci;lV < i V'

SENATE

S. B. No 1 ^ ^

In tro d u c e d by SEN. WIN GATCHALIAN1*345

AN ACT

ENHANCING THE GOVERNANCE STRUCTURE OF THE

ENERGY REGULATORY COMMISSION

Be it enacted by the Senate an d H ouse o f Representatives o f the Philippines in

Congress assem bled:

1 CHAPTER I
' GENERAL PROVISIONS

4 SECTION 1. T itle. - This Act shall be known as the “Energy Regulatoiy

5 Com m ission Governance Act of 2017.”

7 SECTION 2. D e cla ra tio n o f Policy. - The State recognizes the significant role
8 of the Energy Regulatory Com m ission in ensuring tra n sp a re n t and reasonable
9 prices of electricity in a regime of free and fair com petition an d full public
10 accountability to achieve greater operational an d economic efficiency.
11 Likewise, public interest dem ands the protection of consum ers as they are
12 affected by the rates and services of electric utilities and other providers of
■i electric power. Towards this end, the State shall:
 a) E stablish a strong, independent, tra n sp aren t, and accountable
2 regulatory body; and
3 b) Institutionalize a system to en su re the efficient an d effective
4 perform ance of the functions and m an d ates of the regulatory body t('
5 enhance com petitiveness in the electric power industry.

7 SECTION 3. Scope. - This Act shall enhance the existing governance

8 m echanism s of the Energy Regulatory Com mission to foster independence,
9 transparency, and accountability.

10

11 SECTION 4. D efln itio n o f T erm s. - As u sed in th is Act, the following words or

12 term s shall have the following m eaning, u n less provided otherwise:
13 a) “C areer Executive Service Board” refers to the governing bod}^ t r
14 the C areer Executive Service (CES) created u n d e r Presidential
15 Decree No. 1 Series of 1972;
16 b) “C areer Executive Service Eligibility” refers to the eligibility
17 conferred to a person who p asses the four-stage CES Eligibility
■i Exam ination process and m eets the other requirem ents
1 ) prescribed by the C areer Executive Service Board;
20 c) “C areer Executive Service Officer” refers to a person with CES
21 eligibility appointed by the President to a CES ra n k upon the
22 recom m endation by the C areer Executive Service Board;
23 d) “Com m ission” refers to the decision-m aking body of the Energy
24 Regulatory Com mission u n d er Republic Act 9136 com posed of
25 one (1) C hairperson and four (4) Com m issioners;
26 e) “C onsum er” refers to all captive and contestable custom ers who
27 buy electricity either from a distribution utility, a retail
28 electricity supplier, or a generation company;
29 f) “D eliberation” refers to a com m unication between or am ong
30 m em bers of the Com m ission in a meeting: Provided, T hat a
ii quorum exists;
3! g) “Electric Power Industry P articipant” refers to any person or
33 entity engaged in the generation, transm ission, distribution, or
34 supply of electricity;
 h) “Energy Regulatory Com m ission” refers to the regulatory agency
) created u n d er Republic Act No. 9136;
\ i) “Jo in t Congressional Power Com m ission” refers to the
\ Com mission created u n d er Republic Act No. 9136;
5 j) “Key ERC Personnel” refers to employees who hold executive or
6 m anagerial positions in the ERC;
7 k) “Meeting” refers to a deliberation of the Com m ission with
8 respect to any case, issue, or m atter w ithin its jurisdiction; and
9 l) “Public Hearing” refers to an official proceeding of a governm ent
10 agency during which the public is accorded the right to express
11 its position on the subject m atter a t hand.

12

13 CHAPTER II
' 'i COMPOSITION OF THE COMMISSION

I;

16 SECTION 5. T he C o m m issio n . - The Com m ission shall be the sole governing

17 body of the ERC, and shall form ulate its policies an d direct its affairs.
18

19 All executive functions of the ERC shall rest on the Commission:

20 Provided, T hat such executive functions shall be limited to the duties and
21 responsibilities enum erated in Section 11 of this Act.

22

23 SECTION 6. Q u a lifica tio n s. - All m em bers of the Com m ission shall be:
24 a) N atural-born citizens and residents of the Philippines;
b) At least thirty-five (35) years of age;
c) Of good m oral character;
V d) Of recognized probity and independence; and
28 e) Of distinguished com petence in any of the following fields: energy, law,
29 econom ics, finance, comm erce, engineering, or other experience relevant
30 to the energy sector with at least ten (10) years of active practice in their
31 respective fields of expertise.
32

33 No m em ber shall have been a candidate for any elective national or local
34 office in the im m ediate preceding elections, w hether regular or special: Provided
 1 further, T hat one (1) shall be a lawyer, one (1) shall be an econom ist, one (1)
2 shall be an engineer, and one (1) shall be a certified public a cco u n tan t or have
3 a background in finance.

5 SECTION 7. R e q u ire m e n ts. - The m em bers of the Com m ission shall, upon
6 assu m p tion of office:
7 a) Publicly disclose any em ploym ent, consultancy, or any connection with,
8 and any pecuniaiy in terest in an Electric Power Industry Participant;
9 b) Publicly disclose if his or h er spouse, p artner, and any relative by
■) consanguinity or affinity within the fourth civil degree is employed or h as
' i a consultancy or any connection with, or h a s any pecuniary interest in
12 an Electric Power Industry Participant;
13 c) Divest through sale or legal disposition any and all in terests in an
14 Electric Power Industry Participant; and
15 d) Term inate em ploym ent or consultancy with any Electric Power Industry
16 Participant.

17

18 SECTION 8. P ro h ib ite d A cts. —The m em bers of the Com mission, w ithin th 1'
19 d u ratio n of their term , are prohibited from:
20 a) Taking u p any em ploym ent or consultancy arrangem ent with any
21 Electric Power Industry Participant;
b) Holding any connection to and any pecuniary in terest in an Electric
• <, Power Industry Participant;
2\ c) Holding any other office or employment; and
25 d) Directly or indirectly practicing any profession, participating in any
26 b u siness, or be financially interested in any contract with, or any
27 franchise, or special privileges granted by the governm ent or any
28 subdivision, agency, or instrum entality thereof, including governm ent-
29 owned and controlled corporations or their subsidiaries.
30

31 The m em bers of the Com mission, after the cessation of their service, arc
32 prohibited from:
33 a) R unning for office in the election imm ediately succeeding their cessation
34 from office; and
 1 b) Personally appearing or practicing a s counsel or agent on any m atter
2 pending before the Com mission for two (2) years following the cessation
3 of their service.
4

5 Any spouse, p artner, an d relative by consanguinity or affinity w ithin the

fourth civil degree of the m em bers of the Com mission are prohibited from:
/ a) Taking u p any em ploym ent or consultancy arrangem ent with an Electric
3 Power Industry Participant during the incum bency of the m em ber of the
9 Com mission to whom he or she is related to;
10 b) Holding any connection to and pecuniary in terest in any Electric Power
11 Industry Participant during the incum bency of the m em ber of the
12 Com mission to whom he or she is related to;
13 c) Appearing a s counsel or agent on any m atter pending before the
14 Com mission or tran sactin g b u sin ess directly or indirectly therein during
15 the incum bency of the m em ber of the Com mission to whom he or she is
16 related to, and w ithin two (2) years from cessation of their service.

17

18 SECTION 9. T he C h a irp e rso n . - The C hairperson shall be from the fields of

energy, law, economics, finance, commerce, or engineering with a t least ten
.) (10) years of experience in energy a n d /o r public utility regulation: Provided,
21 T hat the qualifications and requirem ents in Sections 6 an d 7 of th is Act are
22 complied with.

23

24 SECTION 10. D u ties a n d R e sp o n sib ilitie s o f th e C h airp e rso n . - The

25 C hairperson shall:
26 a) Provide leadership direction for the Com mission in m atters such a s but
27 not limited to developm ent an d determ ination of strategies and policies
28 in order to effectively comply with its m andate u n d e r Republic Act 9136;
29 b) Ascertain th a t the strategies and policies agreed upon by the
30 Com mission are effectively im plem ented by the Executive Director;
'I c) Promote collaborative relationships and open com m unication between
and am ong m em bers of the Commission;
3) d) Set, in consultation with other m em bers of the Com mission, the
34 Executive Director, and the Secretariat, the C om m ission’s m eeting
35 schedule and agenda to take full account of the im portant issu es facing
 1 the Com m ission cmd the concerns of m anagem ent, and en su re th a t
2 adequate time is available for thorough discussion of each;
) e) E nsure th a t the m em bers of the Com mission undergo capacity building
\ program s to continuously enhance technical com petence, are properly
5 briefed on issu es pending before the Com mission, and receive, in a timely
6 m anner, adequate, accurate, clear, complete, and reliable inform ation to
7 fulfill their duties;
8 f) Preside over m eetings of the Commission: Provided, T hat the C hairperson
9 h a s the right to vote on m atters pending before the Commission;
10 g) A scertain th a t all key and appropriate issu es are discussed, deliberated
11 upon, and resolved by the Com m ission in a timely m anner;
12 h) Create an environm ent th a t allows constructive discourse during open
13 m eetings, executive sessions, and public hearings;
14 i) E nsure th a t the C om m ission’s decisions are in furtherance of its
15 m andate u n d e r Republic Act 9136;
• ■>'
■> j) Secure th a t the Com m ission avoids acts which unduly influence, impede,
.7 or ham per the Executive Director or any ERC employee from effectively
1i fulfilling his or her duties an d responsibilities; and
19 k) E stablish good corporate governance practices and procedures and
20 prom ote the highest sta n d a rd s of independence, transparency, integrity,
21 and probity.

22

23 SECTION 11. D u ties and R e sp o n sib ilitie s o f th e M em bers o f th e

24 C o m m issio n . - In addition to the functions enum erated in Republic Act 913(
25 the m em bers of the Com m ission shall:
26 a) Regularly atten d and actively participate in the m eetings of the
27 Com mission where any case, issue, or m atter w ithin its jurisdiction is
'yo
u n d er consideration;
r) b) Recommend to the C hairperson the inclusion in the agenda of any case,
31 issue, or m atter deem ed appropriate in the perform ance of the
31 C om m ission’s functions;
32 c) Be properly informed about and thoroughly analyze cases, issues, and
33 m atters pending before the Commission;
34 d) Take p a rt in co ntinuous education and capacity building program s of the
35 Com m ission to enhance technical com petence;
 1 e) Abstain from acts which unduly influence, impede, or ham per the
2 Executive Director or any ERG employee from effectively fulfilling his or
3 her duties and responsibilities;
4 1) Appoint the Executive Director of the ERG; Provided, T hat the
5 requirem ents, prohibited acts, qualifications, and duties and
6 responsibilities stated in Sections 7, 8, 12, and 13 of th is Act are
7 complied with;
8 g) Act on the selection and appointm ent of Key ERG Personnel: Provided,
9 T hat the selection process for Key ERG Personnel m u st be in accordance
10 with e r g ’s E nhanced Merit Selection Plan a n d /o r other plan s related to
n personnel selection duly approved by the Gommission;
2 h) Review and act on the endorsem ent of the proposed ERG budget:
,} Provided, T hat such endorsem ent m u st come from the Executive Director
II an d m u st be su b stan tiated with suporting docum ents;
15 i) Initiate, m otu poprio or upon formal com plaint, investigations against
16 the Executive Director and act upon these investigations: Provided, Thai
17 such investigation is w ithout prejudice to the filing of adm inistrative or
18 crim inal cases against the Executive Director; and
19 j) Perform in good faith an d to the best of its ability, the functions stated in
20 Republic Act 9136 an d the duties an d responsibilities specified in this
21 Act.

22

23 CHAPTER III
ERC OPERATIONS

i)

26 SECTION 12. T he E x ecu tiv e D irecto r. - The Com mission, acting collectively,
27 shall appoint an Executive Director who shall act a s the Chief Executive Officer
28 of ERC until resignation, retirem ent, or u n less term inated earlier for cause.
29 The Executive Director who shall be a C areer Executive Service Officer of the
30 ERC, shall have relevant experience in any of the fields of law, economics,
31 commerce, m anagem ent, finance, or engineering for at least ten (10) years, and
32 shall be subject to the sam e requirem ents and prohibitions a s indicated iri
33 Sections 7 and 8 of this Act.
34
 1 W hen an Executive Director who h a s rendered a t least ten (10) years
2 service in such capacity retires, he or she shall receive during the d uration of
3 his or h er n a tu ra l life, retirem ent benefits equivalent to his or her last salarv
4 p lu s representation and other allowances.

SECTION 13. D u ties a n d R e sp o n sib ilitie s o f th e E x ecu tiv e D irecto r. - The

d u ties and responsibilities of the Executive Director shall include b u t shall not
? be limited to:
9 a) Developing and proposing, for the C om m ission’s approval, the
10 operationalization of the strategies and policies agreed upon by the
11 Commission;
12 b) Effectively executing the approved operationalization of the strategies and
13 policies agreed upon by the Commission;
14 c) Leading the m anagem ent of the daily operations of ERC in accordance
15 with the plans and within the budget approved by the Commission;
16 d) A ssum ing full responsibility for the overall supervision an d control of aii
17 divisions, u nits, and services of the ERC;
18 e) Assigning to each division, unit, and service of the ERC such duties th at
19 are considered necessary or expedient;
"J f) C oordinating the workings of the divisions, u nits, and services of the
1 ERC;
g) E stablishing a m echanism for capacity building for all employees of the
23 ERC to continuously enhance technical com petence: Provided, T hat such
24 m echanism will based on the principle of m eritocracy;
25 k) E nsuring com pliance with the ERC’s E nhanced Merit Selection Plan
26 a n d /o r other plans related to personnel selection duly approved by the
27 Com mission w hen it comes to the hiring an d prom otion of employees;
28 h) Leading the m anagem ent to en su re effective working relationships with
29 the Com mission by regularly com m unicating with the C hairperson t 1’
30 review key developm ents, issues, opportunities, and concerns;
31 i) E nsuring th a t the m anagem ent gives priority to providing docum ents
32 and reports which contain relevant, accurate, timely, an d clear
•> inform ation necessary for the Com m ission to fulfill its duties;
4 j) M aintaining regular dialogue with the Com m ission while ensuring th a t
?> the Com mission, especially the C hairperson, is alerted to forthcom ing
36 complex, contentious, sensitive, or strategic issu es facing the ERC;
 1 k) Advising the Com m ission on any m atter referred to the Executive
2 Director;
3 l) Managing the affairs of the ERC in accordance with good corporate
4 governance practices and procedures while prom oting the highest
5 sta n d ard s of independence, transparency, integrity, and probity;
6 m) Initiating investigations and recom m ending adm inistrative sanctions
7 against erring employees, w ithout prejudice to the filing of any crim inal
8 action against the concerned employee;
9 n) Regularly subm itting to the Com m ission u p d a te s on the operations of
10 ERC; and
11 o) Performing such other duties a s the Com m ission m ay assign.
12

13 All decisions of the Executive Director involving budgeting and

14 d isb u rsem ent of funds shall be subject to the approval of the Com mission.

15
CHAPTER IV
TRANSPARENCY AND ACCOUNTABILITY

18

19 SECTION 14. O pen M eeting. - All m eetings of the Com m ission shall be open
20 to the public: Provided, T hat the public m ay only participate during public
21 hearings: Provided further, T hat a live web stream ing or any related technology
22 of the open m eeting shall be posted: Provided finally. T hat the tran scrip t of
23 stenographic notes and m inutes of the open m eeting shall be m ade available to
24 the public, w hether on the website or otherwise, within one (1) week from th ,
25 date of the open meeting.
26

27 The Com m ission, upon a m ajority vote, m ay decide to m eet in an

executive session: Provided, T hat before going into an executive session, the
.) Com mission m u st convene in an open m eeting, identify the reason for the
33 executive session while stating all the subjects th a t m ay be revealed w ithout
31 com prom ising the purpose for which the executive session was called, declare
32 w hether the Com mission will reconvene in a n open m eeting at the end of the
33 executive session, and take a roll call vote to en ter into executive session.
34
 1 Executive sessions m ay be called for the following reasons:
2 a) To d iscu ss the discipline or dism issal of or com plaints or charges
3 brought against a public officer, employee, or staff of ERC; and
4 b) To d iscu ss trade secrets, confidential, competitively-sensitive, or othei
5 proprietary inform ation.

7 SECTION 15. Public N otice o f O pen M eetings. — The Com mission shall
8 provide the public with notice of its m eeting and the agenda a t least seven (7)
9 working days before the scheduled date of the meeting: Provided, T hat for
10 emergency m eetings, the notice m ay be posted within a reasonable time prior
11 to the meeting: Provided further, T hat public notices shall be posted in a
m an n er easily accessible to the public such a s b u t not limited to actual and
web posting.

14

15 SECTION 16. O rd ers, D ecisions, a n d R e so lu tio n s. - All orders, decisions.

16 an d resolutions shall undergo deliberations an d once approved by the required
17 n u m b er of votes during open m eetings provided a quorum is present, shall
18 forthwith be prom ulgated within thirty (30) days from date of the open m eeting
19 an d published online in accordance with Section 18 hereof.

20

21 SECTION 17. S u p p o rt D esk. - A su p p o rt desk shall be m ade available to the

22 public which will supply assistan ce to C onsum ers for a better u n d erstan d in g of
■1 all proceedings and issu an ces of the Com mission a s well a s any an d all m atters
>1 w hich affect the electricity rates charged to C onsum ers: Provided, T hat the
15 m atter shall not be confidential information.
26

27 A new office m ay be created for th is Support Desk should the

28 Com mission deem it necessary.

29

30 SECTION 18. O nline P u b lica tio n . - All petitions, applications, and reportorial
31 requirem ents of Electric Power Industry Participants, including all annexes
32 thereto, except for those considered a s confidential inform ation, as well as
33 orders, decisions, and resolutions of the Com mission, shall be posted on the

JO
 1 ERC website w ithin five (5) days from subm ission in the case of petitions,
2 applications, and reportorial requirem ents, or prom ulgation in the case of
3 orders, decisions, and resolutions.

5 SECTION 19. A ccess to In fo rm a tio n . - Every C onsum er h a s a right to

6 inform ation and shall, on request, be given access to any inform ation of public
7 concern u n d e r the control of the Commission: Provided, T hat the access to
S inform ation shall not be granted if:
) a) The inform ation is considered confidential inform ation u n d e r the ERC
13 Rules of Practice and Procedure;
11 b) The inform ation consists of m inutes or records of advice given, or of
12 opinions expressed during decision-m aking or policy form ulation in the
13 course of executive sessions;
14 c) The inform ation requested consists of drafts of orders, resolutions,
15 decisions, or m em oranda of the Com m ission in the exercise of its
16 regulatoiy function; and
17 d) The inform ation requested p ertain s to trade secrets, competitively-
18 sensitive, or other proprietary inform ation, whenever the revelation
19 thereof would prejudice the in terests of a n a tu ra l or juridical person in
20 trade, industrial, financial, or com m ercial com petition.

'i

21 SECTION 20. P ro c ed u re o f A ccess. - Any person who desires to obtain

23 inform ation shall subm it, free of charge, a request to the Commission
24 personally, by mail, or through electronic m eans. W ithin fifteen (15) working
25 days from the receipt thereof or as soon a s practicable, the Com m ission shall
26 comply with the request: Provided, T hat the period m ay be extended if a
27 fortuitous event occurred, the inform ation requested requires a search of the
28 C om m ission’s field offices or an exam ination of volum inous records, or other
29 analogous cases.

30

31 SECTION 21. A ccess a n d P ro c e ssin g F ees. - The Com m ission m ay charge a

reasonable fee which shall in no case exceed the actual cost of reproduction,
copying, or transcription of the inform ation requested: Provided, T hat the

11
 1 Com mission m ay waive the fees w henever it is satisfied th a t the person who
2 requested is indigent or th a t the cost of reproduction is negligible.

SECTION 22. E x em p tio n from C o m pliance. - The Com m ission is excused

from complying with a su b seq u en t identical or substantially sim ilar request
from the sam e requesting party: Provided, T hat it h a s previously complied with
7 a sim ilar request for inform ation u n less a reasonable interval h a s lapsed
8 between com pliance with the previous request and the m aking of the current
9 request.

11 SECTION 23. A d m in istra tiv e OfTenses a n d P e n a ltie s. - Any ERC official or

12 employee who refuses to comply with Section 14 of this Act shall be suspended
13 from service for six (6) m o nths and one (1) day to one (1) year w ithout pay on
14 the first offense, and shall be dism issed from service and be perpetuall}
15 disqualified from re-em ploym ent in any governm ent agency or instrum entality
on the second offense.

Any ERC official or employee who refuses to comply with, or fails to

19 perform the acts required w ithin the specified period of time in Sections 15, 16,
20 an d 18, shall be reprim anded on the first offense, shall be suspended from
21 service for one (1) to thirty (30) days on the second offense, and shall be
22 dism issed from service and be perpetually disqualified from re-em ploym ent in
23 any governm ent agency or instrum entality on the third offense.
24

25 Any ERC official or employee who refuses to comply with, or fails to act
26 on a request for inform ation p u rsu a n t to Sections 19 and 20 of th is Act shall
27 be suspended from service for six (6) m onths and one (1) day to one (1) year
•S w ithout pay on the first offense, and shall be dism issed from service and be
.) perpetually disqualified from re-em ploym ent in any governm ent agency or
31 instrum entality on the second offense.

31

32 SECTION 24. C rim in al O ffenses and P e n a ltie s. - The penalty of

33 im prisonm ent of not less th a n one (1) m onth b u t not more th a n six (6) m onths
34 and a fine ranging from ten th o u san d pesos (Php 10,000.00) to one h u ndred

12
 th o u san d pesos (Php 100,000.00) shall be im posed upon any ERC official or
employee who:
3 (1) Falsely denies or conceals the existence of inform ation th a t is a proper
4 subject for disclosure u n d e r Section 19 of th is Act;
5 (2) Destroys, or cau ses to be destroyed, inform ation a n d /o r docum ents
6 being requested th a t is a proper subject of disclosure u n d e r Section 19
7 u n d er this Act for the purposes of frustrating the requesting p arty ’s
8 access thereto;
9 (3) Divulges or releases inform ation covered by confidentiality u n d er
10 Sections 14 and 19 of th is Act;
11 (4) Divulges or releases inform ation th a t is altered, tam pered, or modified to
12 the extent th a t the released inform ation m aterially differs from the
13 original contents of the docum ent; Provided, T hat altering or modifying a
■t docum ent for the purpose of severing an exem pt inform ation from non-
1i exem pt inform ation in a single docum ent shall not be punishable u n d er
13 this Section.
17

18 If the violation com m itted in this Act is induced by a n d /o r assisted by a

19 private individual or corporation, p artnership, or any kind of judicial entity, the
20 penalty provided herein shall be im posed on its executive officer a n d /o r other
21 officials responsible therefor: Provided, T hat they shall suffer, in addition to the
22 penalties provided herein, the autom atic revocation of their license to operate.

23

24 CHAPTER IV
GENERAL PROVISIONS

27 SECTION 25. T ra n sito ry P ro v isio n . - The cu rre n t m em bers of the

28 Com mission shall continue to serve in such capacity until the completion of
29 their term.
30

31 The qualifications, requirem ents, and prohibitions stated in Sections 6,

32 7, and 8 of this Act shall apply to new m em bers of the Commission.
33

13
 1 The c u rre n t C hairperson shall im m ediately divest him self of his role and
2 powers as the Chief Executive Officer of the Com m ission upon the effectivity of
3 th is Act.
4

5 The c u rre n t Executive Director shall assu m e the duties and

6 responsibilities laid ou t in Section 13 of th is Act upon the effectivity of th is Act:
7 Provided, T hat upon su ch assum ption, the c u rre n t Executive Director shall
8 imm ediately comply with the requirem ents and prohibitions stated in Sections
■)
7 and 8 of th is Act: Provided further, T hat the c u rre n t Executive Director shell
D serve a s su ch u ntil his resignation, retirem ent or term ination for cause.

11

12 SECTION 26. O v ersig h t C o m m itte e . - Upon the effectivity of this Act, the
13 JCPC established u n d e r Republic Act No. 9136 or the Electric Power Industry
14 Reform Act of 2001 shall exercise oversight powers over the im plem entation of
15 th is Act.

16

17 SECTION 27. S e p a ra b ility C lause. - If for any reason, any provision of this
18 Act is declared u n constitutional or invalid, the other p a rts or provisions hereof
19 which are not affected thereby shall continue to be in full force and in effect.

SECTION 28. R epealing C lause. - All laws, decrees, orders, rules and
22 regulations or p a rts thereof which are inconsistent with or contrary to the
23 provisions of th is Act are hereby repealed, am ended or modified accordingly.

24

25 SECTION 29. E ffe ctiv ity . - This Act shall take effect fifteen (15) days after its
26 publication in a t least two (2) national new spapers of general circulation

Approved.

14