Microgrid Systems Act (Republic Act No. 11646)

(a) Pursue sustainable rural development and poverty reduction towards nation-building through energy access for all;

(b) Accelerate total electrification and ensure the provision of quality, reliable, and secure electricity service at reasonable rates in unserved and underserved areas; 3

(c) Promote private sector participation in the the transmission, subtransmission system, or power generation electrification of unserved and underserved areas; facility connection and the point of connection to the premises of the end-user, whichever is applicable;

(d) Provide a competitive environment for different kinds of energy sources while prioritizing low-cost, indigenous, (e) Distribution utility (DU) refers to any electric renewable, and environment-friendly sources of energy; and cooperative, private corporation, government-owned utility, or existing local government unit which has a franchise to

(e) Ensure the adoption of a dynamic regulatory operate a distribution system including those whose franchise environment that does not impair nor inhibit end-users from covers. economic zones; accessing or enjoying the benefits of technologies and innovations in the electric power industry. (f) DU operated microgrid system refers to a microgrid system owned and operated by a DU in a DU identified SEC. 3. Scope and Application. — This Act shall apply unserved area in its local total electrification roadmap; to the development of microgrid systems in unserved and underserved areas nationwide. (g) Electric Cooperative (EC) refers to a DU organized pursuant to Presidential Decree No. 269, as amended, or as SEC. 4. Definition of Terms. — For purposes of this Act, otherwise provided in this Act; the following terms shall be defined as stated below: (h) End-user refers to any natural or juridical person (a) Authority to operate (ATO) refers to the document requiring the supply and delivery of electricity for its own use; issued by the Energy Regulatory Commission (ERC) to the microgrid system provider, which shall constitute as the (i) Grid refers to the high voltage backbone system of latter’s license to provide integrated power generation and interconnected transmission lines, substations, and related distribution services to unserved or underserved areas; facilities, located in each of Luzon, Visayas, and Mindanao; (b) Competitive selection process for microgrid system (j) Grid-tied microgrid system refers to a -microgrid provider (CSP) refers to the procedure wherein an entity is system that is electrically connected to the distribution system awarded the contract to provide integrated power generation of a DU and can operate in synchronized mode or in island and distribution services to an unserved or underserved area mode; through a transparent and competitive procedure, such as, but not limited to, an auction, unsolicited proposal, or Swiss (k) Island mode refers to a grid-tied microgrid system challenge, taking into consideration the requirements of this operating as a stand-alone system in supplying and delivering Act and other applicable laws; electric power to connected end-users; (c) Decentralized power generation (DPG) refers to (1) Isolated microgrid system refers to a microgrid system small-scale power generation facilities which operate locally and that is not electrically connected to a distribution system of are connected to the distribution system of the microgrid or a DU and is operating as a stand-alone system in supplying end-user that could be aggregated to provide electric power and delivering electric power to connected end-users; necessary to meet demand, including, but not limited to, te mini-wind turbines connected to a microgrid, energy storage, (m) Local total electrification roadmap (LTER) refers to and solar photovoltaic rooftop of an end-user; a DU’s comprehensive strategic plan with an annual work plan to accelerate total electrification in its franchise area; (d) Distribution system refers to the system of wires and associated facilities extending between the delivery points on (n) Microgrid system refers to a group of interconnected loads and a generation facility or DPG with clearly defined tie, CON LPC AVC NEAT AY TF AACE 4 3 electrical boundaries that acts as an: integrated power (u) Universal charge for missionary electrification (UCME) generation and distribution system, whether or not connected refers to the portion of the non-bypassable charge passed on to a distribution or transmission system; and collected from all end-users on a monthly basis by the DUs pursuant to Republic Act No. 9136, otherwise known as (o) Microgrid system provider service contract (MSC) the “Electric Power Industry Reform Act of 2001”, a portion refers to the contract between the microgrid system provider of which is allocated for the provision of integrated power and the National Power Corporation (NPC) whereby the generation and distribution services in unserved areas and microgrid system provider performs the missionary underserved areas not connected to the grid or within a electrification function on behalf of the NPC and provides franchise area where the distribution system is not connected integrated power generation and distribution services in an to the grid; and . unserved or underserved area, and to receive subsidy whenever applicable; (v) Unserved area refers to an area, upon the effectivity of this Act, with-no electricity access, no distribution system (p) Microgrid system provider (MGSP) refers to a natural lines, no home power systems, no connection to any microgrid or juridical person whose business includes the installation, system, or for which no distribution grid extension has been operation, and maintenance of microgrid systems in unserved developed or implemented by the DU. or underserved areas nationwide; SEC. 5. Microgrid Systems in Unserved and Underserved (q) National total electrification roadmap (NTER) refers Areas. - MGSPs may provide integrated power generation and to a comprehensive national strategic plan including a work distribution services in DU identified unserved areas following plan to accelerate total electrification in the country taking the procedure in Section 9 of this Act, and shall provide the into account the various LTERs and the Distribution same in the Department of Energy (DOE) declared unserved Development Plans (DDPs). It shall be incorporated in the and underserved areas after the conduct of a CSP in Philippine Energy Plan; accordance with Sections 8, 11, and 12 of this Act: Provided, That only isolated microgrid systems and grid-tied microgrid (r) NPC Graduation Plan refers to a comprehensive and systems operating in island mode shall be allowed: Provided, detailed strategy of the NPC to attract private sector further, That unserved and underserved areas that already participation in areas served by the NPC; have an appropriation for electrification in the General Appropriations Act (GAA) at the time of the effectivity of this (s) Synchronized mode refers to the operation of grid-tied Act shall not be included in the list of DU identified unserved microgrid systems whose generation facility or DPG is able areas and DOE declared unserved and underserved areas. to operate in the same frequency at its connection point to the distribution system of a DU, and allows the grid-tied SEC. 6. Microgrid System Providers. — The ownership microgrid system to supply to or draw power from the grid; and operation of a microgrid system in unserved and underserved areas pursuant to this Act shall not be considered (t) Underserved area refers to an area currently served a public utility operation. For this purpose, any MGSP shall by home power systems, microgrid systems, or DUs whose not be required to secure a franchise from Congress, but shall supply of electricity is less than twenty-four (24) hours daily secure an ATO from the ERC prior to its operation. All because of the non-implementation of approved capital qualified third parties (QTPs) providing alternative electric expenditure projects, noncompliance with the service service pursuant to Section 59 of Republic Act No. 9136 are parameters of the Philippine Distribution Code (PDC), or any hereby renamed and shall hereafter be known as MGSPs. other reason resulting to an overall failing mark based on ERC’s latest annual technical evaluation of performance of Any party, including private corporations, local to eee government units, cooperatives, nongovernment organizations, distribution systems; 6 7 get PACER! At etme pe generation companies and their subsidiaries, and DUs and contract shall be no longer than ninety (90) calendar days after their subsidiaries who have demonstrated the capability and all the published requirements are completely submitted: willingness to comply with the relevant technical, financial, Provided, further, That the CSP may be conducted using a secure electronic portal. MES ete and other requirements, may be an MGSP: Provided, That these entities shall not subsidize their respective MGSPs and shall maintain a separate account for such business A DU’s MGSP may tender a lower offer in every CSP SET Pe EAR oe! undertaking pursuant to ERC’s applicable rules and guidelines it participates in within its franchise area, unless otherwise on business separation and unbundling, whenever applicable. provided in Section 17 of this Act, within seven (7) calendar days from the announcement of the winning MGSP in the SEC. 7. Waiver of Obligation to Provide Distribution CSP: Provided, That such tender shall be submitted to the Services and Connections and to Supply Electricity. - DOE DOE or its authorized entity, whichever is applicable, and the declared unserved or underserved areas or DU identified winning MGSP. unserved areas which are awarded to MGSPs pursuant to Sections 8 and 9 of this Act shall be deemed waived by the The award by the DOE or its authorized entity to the DU insofar as its obligation to provide distribution services and oT MGSP, the execution of the MSC, and the filing of a complete application with the ERC shall comprise the provisional samamesroreaae connections to end-users and supply electricity to the area concerned. The waiver shall not transfer, abandon, or modify authority of the MGSP to start collection of the rate specified the DU’s franchise but bestows upon the awarded and in the award, the MSC, and the application upon the start compliant MGSP the exclusive right and obligation during the of the MGSP’s operation: Provided, That the ERC shall fe existence of the MSC, on behalf of the NPC, to provide schedule and conduct a hearing thereon within thirty (30) integrated power generation and distribution services to the calendar days from receipt of the complete application, upon unserved or underserved area during the period of the MSC, publication and notice to all affected parties: Provided, further, consistent with the NPC’s missionary electrification function. That the final decision shall be issued within one hundred thirty-five (135) calendar days from receipt of the complete SS herrea yen entiom UT A, cemented LAN ae SEC. 8. Competitive Selection Process for Electrification application. and Service of DOE Declared Unserved and Underserved Areas by Microgrid System Providers. - The DOE shall declare In the event that there are no participants or there is unserved and underserved areas for electrification and service no awarded MGSP in the CSP for a particular unserved or one ree aa eta by MGSPs pursuant to Section 12 of this Act. The DOE underserved area, the NPC shall perform its missionary declared unserved and underserved areas shall be subjected to electrification mandate in the said area until an MGSP takes CSP. Ali CSPs shall: part or is awarded in the next CSP. (a) Prioritize low-cost, indigenous, renewable, and SEC. 9. Procedure for Electrification of DU Identified environment-friendly sources of energy; oe Unserved Areas Through Microgrid System. - The DU may identify unserved areas for electrification by DU operated mea inenneltes cemiemenmangeis fins (b) Be conducted based on the list of DOE declared microgrid systems in its LTER. The list of DU identified unserved and underserved areas, taking into account each DU’s unserved areas shall be annually published by the DOE on LTER and DDP in relation to the NTER: Provided, That the its website. te schedule shall be published and posted on the ERC and DOE websites not later than September of every year; and The DOE, or the NPC if authorized by the DOE, may - receive from MGSPs all-in price offers to provide integrated emer raciner nt sr Sent AP REM, (c) Be simple, uniform, streamlined, and transparent: power generation and distribution services in a particular DU Provided, That the entire procedure from pre-qualification of identified unserved area within thirty (30) calendar days from MGSPs until the submission to the ERC of the awarded the publication of the list of DU identified unserved areas: eee 9 8 Provided, That the DU shall have the right to tender a lower to the grid may be entitled to avail of the UCME as all-in price offer within seven (7) calendar days after the DOE determined by the ERC. The availment of the UCME shall or the NPC publishes all price offers it has received on its be rationalized by the DOE in consultation with the DUs website: Provided, further, That in the event the DU tenders taking into consideration equity and continued economic a lower all-in price offer, it shall electrify the DU identified progress in these areas. unserved area through a DU operated microgrid system within SEC. 11. Powers, Functions, and Responsibilities of the eighteen (18) months from the award by the DOE or the NPC: Provided, finally, That if the DU does not tender a lower all- Energy Regulatory Commission. — In addition to its functions or the NPC shall award the MGSP under Republic Act No. 9136, the ERC shall: in price offer, the DOE with the lowest all-in price offer to electrify the DU identified unserved area and the NPC shall enter into an MSC with (a) Provide for a simplified and streamlined permitting such MGSP. In the event there are no offers from any MGSP process for MGSPs and DU operated microgrid systems in for a particular DU identified unserved area, the DU shall accordance with the time frame specified in Section 19 of this electrify the area through a DU operated microgrid system Act, and issue an ATO to an MGSP pursuant to such process; within eighteen (18) months from the lapse of the thirty (30) calendar day period for MGSPs to tender an all-in price offer. (b) Develop, establish, and promulgate in consultation ‘This entire procedure shall: with the DOE, the NPC, the National Electrification Administration (NEA), and other relevant government agencies renewable, and and private stakeholders in the electric power industry, the (a) Prioritize low-cost, indigenous, environment-friendly sources of energy; minimum technical and service performance standards for microgrid systems within one hundred twenty (120) calendar (b) Be simple, uniform, streamlined, and transparent; and days from the effectivity of this Act: Provided, That these standards shall be compliant with the PDC, Philippine Small (c) Be no longer than ninety (90) calendar days from the Grid Code, Philippine Grid Code, and other relevant rules and publication by the DOE or the NPC of the list of DU identified regulations; unserved areas. (c) Review and act on all MSCs entered into within the time frame provided under Sections 8, 9, and 19 of this Act; The award by the DOE or the NPC to the DU or the MGSP, the execution of the MSC if applicable, and the filing (d) Exercise its rate-making power through the evaluation of a complete application with the ERC shall comprise the provisional authority of the DU or MGSP to start collection and determination of the following, within the applicable time of the rate specified in the award, the MSC, and the frames provided under Sections 8, 9, and 19 of this Act: application upon the start of the DU or MGSP’s operation: Provided, That the ERC shall schedule and conduct a hearing (i) An MGSP or DU operated microgrid system’s full cost, FRU BERR days from receipt of the approved subsidy if applicable, and retail rate imposed on thereon within thirty (30) calendar complete application, upon publication and notice to all affected end-users of unserved and underserved areas; parties: Provided, further, That the final decision shall be (ii) An equitable recovery mechanism, if applicable, for issued within one hundred thirty-five (135) calendar days from receipt of the complete application. an MGSP’s assets to ensure just compensation at the expiration of the MSC pursuant to Section 17 of this Act; and SEC.i 10. Availment of the UCME. - Only MGSPs and (iii) In the event of a distribution grid extension, upon DU operated microgrid systems that operate in unserved areas the expiration of the MSC, and upon decision of the DU to and underserved areas not connected to the grid or within a franchise area where the distribution system is not connected acquire the microgrid system, review the application of the DU 10 il before the ERC to connect the microgrid system to the by the DOE as such, to declare such area as an unserved or distribution grid pursuant to the equitable recovery mechanism underserved area; provided in this section: Provided, That any connection that results in an increase in rates shall have to be approved by (f) Identify and declare regularly unserved and the ERC; underserved areas based on the NTER, and the DU’s LTER and DDP and its compliance with the time frame provided (e) Monitor the compliance of all MGSPs with their therein, taking into consideration the petitions it has received obligations under their respective ATOs; and from end-users pursuant to this section, through the issuance of a list of such areas not later than September of every year,

(f) Exercise original and exclusive jurisdiction over all with the assistance of the NPC and NEA and in consultation cases involving the exercise of the abovementioned powers, with DUs in accordance with Section 8 of this Act: Provided, functions, and responsibilities, and over all cases involving That the list shall also indicate the target date of distribution disputes arising from this Act, except in competition cases grid extension by the DU for the DOE declared unserved and ceed under Republic Act No. 10667, otherwise known as the underserved areas, if any: Provided, further, That the DOE “Philippine Competition Act”. shall validate any unserved and underserved area that is not included in the LTER of the DU before it can identify such SEC. 12. Powers, Functions, and Responsibilities of the area as a DOE declared unserved or underserved area; ee ee Department of Energy. - In addition to its functions under Republic Act No. 7688, otherwise known as the “Department (g) Prepare, in consultation with the ERC, standard of Energy Act of 1992”, as amended, the DOE shall: templates for MSCs to be utilized in all CSPs; ee (a) Prepare and publish annually on its website the (h) Conduct all CSPs for DOE declared unserved and NTER, upon consultation with public and private stakeholders; underserved areas with the assistance of the NPC and NEA in accordance with Section 8 of this Act: Provided, That the (b) Provide for a simplified and streamlined permitting DOE may authorize the NPC and NEA to conduct CSPs on process for MGSPs and DU operated microgrid systems within its behalf: Provided, further, That the NPC and NEA shall, the time frame specified in Section 19 of this Act; if authorized by the DOE to conduct CSPs, strictly comply with the procedure, guidelines, and timeframe for CSPs (c) Determine which DUs it may cluster for the quarterly indicated in this Act; submissions of LTERs and DDPs as well as the quarterly conduct of CSPs; Gi) Conduct, or authorize the NPC to conduct, the procedure for the electrification of DU identified unserved areas (d) Determine, in consultation with DUs, the time frame through microgrid systems provided in Section 9 of this Act; for compliance with their respective LTERs and DDPs: Provided, That all projects in each annual work plan shall (j) Monitor the operations of all awarded MGSPs and their be completed not later than eighteen (18) months from respective MSCs: Provided, That the DOE, motu proprio or submission to the DOE or, in the case of DU identified upon complaint, may conduct a review of an MGSP’s unserved areas, from the lapse of the thirty (30)-calendar day operations and its corresponding MSC should it find reasonable period for MGSPs to tender an all-in price offer pursuant to grounds for noncompliance with the minimum technical arfd Section 9 of this Act; service performance standards and other provisions of the } MSC; (e) Receive and verify petitions from end-users, who are currently residing in an unserved or underserved area not (k) Determine a detailed procedure for the transition of identified or included by the DU in its LTER or not declared service from the NPC or a DU to an MGSP, or from an MGSP to a DU or another MGSP, whichever is applicable: pore 12 13 Provided, That such transition shall not exceed ninety (90) SEC. 15. Functions and Responsibilities of Distribution calendar days from the completion of the CSP; and Utilities. - A DU may enter into a joint venture for the installation and operation of microgrid systems: Provided, That (1) Perform such other powers and functions as may be the DU shall maintain a separate account for such business necessary to attain the objectives of this Act. undertaking pursuant to the ERC’s applicable rules and guidelines on business separation and unbundling: Provided, SEC. 13. Functions and Responsibilities of the National further, That only a joint venture for the installation and Electrification Administration. — The NEA shall: operation of microgrid systems where the DU owns at least fifty-one percent (51%) of capital shall be considered as a DU (a) Assist ECs in the preparation of their respective operated microgrid system or a DU’s MGSP. LTERs; and DUs shall be allowed to impose a separate rate in DU (b) Evaluate and verify the unserved and underserved identified unserved areas served by a DU operated microgrid areas submitted by ECs as part of its LTER and submit its system or DOE declared unserved and underserved areas recommendations to the DOE not later than the 15% of March served by a DU’s MGSP: Provided, That any cross-subsidy of every year. between the end-users of the DU operated microgrid system or the DU’s MGSP and the other end-users of the DU shall SEC. 14. Functions and Responsibilities of the National be prohibited. Power Corporation. — The NPC shall: The DU pursuant to the directive to pursue the total (a) Prepare and execute annually an NPC Graduation electrification of their franchise. areas shall prepare and submit Plan; its LTER which shall contain the following, among others: (b) Continue to perform its missionary electrification (a) A validated detailed inventory of all areas within a mandate, including areas with no participating or awarded DU’s franchise which it plans to electrify including a specific MGSP during a CSP; time frame for electrification, including DU identified unserved areas for electrification through DU operated microgrid (c) Conduct a CSP whenever authorized by the DOE systems; pursuant to Section 12 of this Act; (b) A validated annual work plan for electrification; and (d) Execute the MSC with the awarded MGSP pursuant to the template determined by DOE in Section 12 of this Act; (c) A validated detailed inventory of all unserved and underserved areas within its franchise. (e) Exclusively collect from the DUs, administer, and apply the UCME; The DU shall integrate the LTER in its DDP. (f) Simplify and streamline the procedure and SEC. 16. Functions and Responsibilities of an MGSP and requirements for the processing of UCME subsidy claims, upon a DU Operated Microgrid System. - An MGSP and a DU consultation with public and private stakeholders: Provided, operated microgrid system shall: * That the streamlined procedure shall not be more than forty-five‘ (45) calendar days; and (a) Build, operate, maintain, and control its microgrid system in accordance with its MSC, this Act, and other

(g) Release the UCME subsidy within forty-five (45) applicable laws, rules, regulations, and codes; calendar days from submission to the NPC of the UCME subsidy claim with complete documentary requirements. 14 15 (b) Supply the load requirements of its area of operation, an MSC, a CSP shall be conducted pursuant to Sections 8 faithfully implement its electrification work program, and and 12 of this Act to determine who shall provide integrated comply with all its obligations under its MSC, if applicable; power generation and distribution services in the area: Provided, That the MGSP with the expiring MSC over the (c) Prepare and submit any report required by the ERC area that participates in such CSP shall have the exclusive and DOE pursuant to their powers under Sections 11 and 12 right to tender a lower offer within seven (7) calendar days of this Act; from the announcement of the winning MGSP in the CSP: Provided, further, That such tender shall be submitted to the (d) Ensure end-user safety and protection at all times; DOE or its authorized entity, whichever is applicable, and the and winning MGSP. The ERC shall determine whether the awarded MGSP shall be entitled to subsidy in accordance with 7 (e) In the case of MGSPs, be exempt from the following: Section 10 of this Act. (i) The public listing requirement under Section 28 of SEC. 18. Non-Disqualification from Extension of Republic Act No. 9136, and Franchise. — The presence of an MGSP in the franchise area of a DU shall not disqualify the said DU from seeking a (ii), The market share limitation requirement under renewal of its Certificate of Public Convenience and Necessity Section 45(a) of Republic Act No. 9136. from the ERC or an extension of the term of its franchise from Congress. ‘ The end-users in unserved areas and underserved areas not connected to the grid or within a franchise area where SEC. 19. Permitting Process. - Republic Act No. 11234, the distribution system is not connected to the grid shall be otherwise known as the “Energy Virtual One-Stop Shop Act’, exempt from the following: shall apply to the permitting process of all MGSPs: Provided, That the applicable time frames shall be reduced to half of (a) The payment of feed-in-tariff (FIT) allowance under the time frames indicated in Sections 13, 14, 15, and 16 of the FIT system in Section 7 of Republic Act No. 9513, Republic Act No. 11234 unless the specific time frame is otherwise known as the “Renewable Energy Act of 2008”, and provided in this Act. (b) The payment of universal charges under Section 34 SEC. 20. Strengthening and Expansion of the Electric of Republic Act No. 9136. Power Industry Management Bureau in the Department of Energy. — The DOE shall strengthen and expand the Electric SEC. 17. Expiration of Microgrid System Provider Service Power Industry Management Bureau (EPIMB) for the effective Contract. — In the event of a distribution grid extension upon implementation of this Act. The new organizational structure the expiration of an MSC, the DU shall have the option to and staffing complement for the EPIMB shall be determined acquire the microgrid system of the MGSP, and resume its by the DOE Secretary, in consultation with the Department obligation to provide distribution services and connection, and of Budget and Management, and in accordance with existing supply electricity to the said area subject to the approval of civil service rules and regulations. The budgetary requirements the ERC and pursuant to the detailed transition procedure of shall be taken from the current appropriations of the DOE. the DOE provided in Sections 11 and 12 of this Act. If a DU’s Thereafter, the funding for the expanded EPIMB shalt he distribution system is connected to the grid, the resumption included in the annual GAA. of the DU’s obligation over the area shall no longer entitle the end-users in the said area to the UCME. SEC. 21. Creation of a Special Division in the Energy Regulatory Commission. — A Special Division attached to the Should the DU choose not to exercise its option, or should appropriate Service Department in the ERC is hereby created there be no distribution grid extension upon the expiration of 16 17 for the effective implementation of this Act. The new hundred million pesos (P100,000,000.00), upon the discretion organizational structure and staffing complement shall be of the court; determined by the Commission and approved by the Office of the President in accordance with existing laws, rules, and (b) Violation of Section 23(d) — Imprisonment of four (4) regulations. The budgetary requirements shall be taken from years to six (6) years, or a fine ranging from a minimum of the current appropriations of the ERC. Thereafter, the funding Fifty million pesos (P50,000,000.00) to Seventy-five million for the dedicated division shall be included in the GAA. pesos (P75,000,000.00), upon the discretion of the court; and SEC. 22. Transitory Provision. — Benefits or incentives (c) Violation of Section 23(e) — Imprisonment of two (2) extended to QTPs under existing laws not amended or repealed years to four (4) years, or a fine ranging from a minimum under this Act shall remain in full force and effect. No of Twenty-five million pesos (P25,000;000.00) to Fifty million provision of this Act shall be taken as to diminish any right pesos (P50,000,000.00), upon the discretion of the court. vested by virtue of existing laws, contracts, or agreements. Any person who willfully aids or abets the commission SEC. 23. Prohibited Acts. — Any person, natural or of these prohibited acts or who causes the commission of any juridical, is prohibited from the following acts: such act by another shall be liable in the same manner as the principal. In cases of an association, partnership, or (a) Refusal to allow the installation of any microgrid corporation, the penalty shall be imposed on the member, system by an MGSP: Provided, That the requirements under partner, president, chief operating officer, chief executive officer, Sections 5, 6, 7, 8, and 9 of this Act are complied with; director, or officer responsible for the violation. (b) Refusal to turn over the provision of integrated power Without prejudice to the aforementioned criminal generation and distribution services to an MGSP, or liabilities, any government officer or employee who violates distribution services and connection and supply of electricity Section 23(e) of this Act shall be held administratively liable, to a DU, whichever is applicable; as follows: (c) Refusal to allow a DU to acquire a microgrid system (a) First offense — Thirty (30) days suspension without pursuant to Section 17 of this Act; pay and mandatory attendance in Values Orientation Program; (d) Imposition of new contractual terms and charges on (b) Second offense — Three (3) months suspension without the end-user which are not part of the MSC or not approved pay; and by the ERC, whichever is applicable; and (c) Third offense — Dismissal and perpetual disqualification (e) Failure to comply with the functions, responsibilities, from public service, and forfeiture of retirement benefits. and time frames in Sections 5 to 19 of this Act. SEC. 25. Congressional Oversight. — The Joint SEC. 24, Criminal and Administrative Penalties. — The Congressional Energy Commission (JCEC) shall exercise responsible officers and employees of any private corporation oversight powers over the implementation of this Act. The DOE or government agency who commit the following prohibited and ERC shall submit annually to the JCEC a thorough réport acts shall, upon conviction, suffer the following penalties: on the implementation of this Act not later than 15 March ; of every year: Provided, That the report shall include (a) Violation of Section 23(a), (b), and (c) — Imprisonment identification of legislative gaps, if any, and recommended ways of six (6) years to eight (8) years, or a fine ranging from a forward. minimum of Seventy-five million pesos (P75,000,000.00) to One 19 18 SEC. 26. Implementing Rules and Regulations. — The This Act which is a consolidation of Senate Bill No. 1928 DOE, in consultation with the appropriate government and House Bill No. 8203 was passed by the Senate of the agencies mentioned herein and electric power industry Philippines and the House of Representatives on and November 17, 2021, respectively. stakeholders, shall issue the implementing rules and November 9.2021 regulations of this Act within sixty (60) working days upon its effectivity. SEC. 27. Amendatory Clause. — This Act amends Section 16(c) of Commonwealth Act No. 146 otherwise known as the MYRA MARIE D. VILLARICA “Pyblic Service Act”; Section 8 of Executive Order No. 172 Secretary of the Senate Series of 1987, entitled “Creating the Energy Regulatory Board”; Sections 28, 43, 45(a), 51(), 59, and 70 of Republic Act No. 9136; Sections 13, 14, 15, and 16 of Republic Act No. 11234; and any other law, presidential decree or issuance, executive order, letter of instruction, rules, and regulations inconsistent with the provisions of this Act. SEC. 28. Separability Clause. — If any portion or provision of this Act is declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect. RODRIGO ROA DUTERTE President of the Philippines SEC. 29. Repealing Clause. — Any law, presidential decree or issuance, executive order, letter of instruction, rules and regulations, and legislative or administrative franchises inconsistent with the provisions of this Act is hereby repealed or modified accordingly. SEC. 30. Effectivity. — This Act shall take effect fifteen (15) days following its complete publication in the Official Gazette or in a newspaper of general circulation. Approved, d a PRT CSS Ge Be oF OA at FEY Ld BEBE CEES Bris a Reape distgesarlmcaxan.| ATTY, CORSIPCIOMMR 6, TERRORS CMAD { President oXthe Senate My wry — DIRECTOR TY rie a m= £ of Representatives REPUBLIC OF THE PEILIPPINES PRRD 2016 - 019982