FY 2027 General Appropriations Bill Day 7 Part 2

Energy Regulatory Commission (ERC): For FY2027, the Energy Regulatory Commission (ERC) National Expenditure Program (NEP) allocation was about ₱944 million; its original FY2027 request was about ₱1.7 billion, with the sponsor confirming that NEP figure was ₱762 million (44.7%) below the request. Representative Presley C. De Jesus and sponsor Representative Arnie B. Fuentebella also compared total available appropriations of about ₱1.83 billion for FY2026 and ₱944.1 million for FY2027, describing the reduction as 12.8%; that percentage does not reconcile with the stated totals and is retained as said. The sponsor linked the reduction mainly to maintenance and operating expenses and capital outlay, including rate-reset consultancies, information-technology modernization and case-resolution capacity, and agreed that cuts could slow rate resets. The sponsor separately sought ₱200 million for rate-reset consultancies, said ERC requested ₱700 million and would accept ₱250 million if provided; De Jesus expressed support for the ERC budget to speed rate resets and capital-expenditure review. The sponsor reported FY2025 collections of ₱2.354 billion against a ₱1.067 billion collection target. De Jesus asked for a special provision allowing ERC to use collections for regulation and recalled a possible ₱700 million retention cap; the bill remained pending in the Senate, so this mechanism was not yet in effect. Asked by Representative Sarah Jane I. Elago about staffing, sponsor Fuentebella said private firms recruit trained technical staff with better offers and appealed to strengthen ERC’s staffing and expertise, contrasting the trillion-peso industry with about ₱900 million for the regulator. This rounded figure was the sponsor’s comparison, not another agency principal total. ERC’s opening presentation stated no overall request or NEP allocation; the original request and NEP comparison above came in questioning.

Civil Service Commission (CSC) and Career Executive Service Board (CESB): For FY2027, sponsor Representative Jose “Bong” J. Teves Jr., Vice Chairperson of the House Committee on Appropriations, stated that the Civil Service Commission (CSC) proposal was ₱4.04 billion, including automatic appropriations, and separately gave ₱142.86 million for the Career Executive Service Board (CESB); he did not describe the CESB figure as an addition to the CSC total. The presentation gave neither original Department of Budget and Management (DBM) request nor prior-year General Appropriations Act (GAA) comparison. Representative Renee Louise M. Co placed CESB’s separate ₱66 million facility and capacity-building requirement on the record and said she would make a motion at the proper time; no motion or funding approval occurred in this exchange.

Department of Transportation (DOTr): No overall FY2027 Department of Transportation (DOTr) original agency-request total was stated. Representative Antonio L. Tinio cited ₱251.59 billion as the General Appropriations Bill (GAB) total and ₱232.23 billion for 14 foreign-assisted projects, without specifying whether the larger total included attached bodies. He compared the FY2024 NEP foreign-assisted-project proposal of ₱161 billion with ₱3.5 billion in the GAA, alleging the cut created room for insertions and calling diversion of loan-tied funds unlawful; sponsor Representative Edwin Ongchuan described delays, unpaid contractors and commitment fees, and said a more representative amendment subcommittee might make cuts harder, without guaranteeing it. For the Japan International Cooperation Agency (JICA)-financed Metro Rail Transit Line 3 (MRT-3) rehabilitation, Tinio cited ₱1.942 billion; Ongchuan said it was limited to MRT-3, while a separate unprogrammed-appropriation issue remained before the Supreme Court.

For FY2027 projects, Representative Jesus “Bong” C. Suntay described ₱197.3 billion (about 82% of five principal operating programs) for rail and about ₱191.2 billion (75.9% of the Office of the Secretary (OSEC)) for the North-South Commuter Railway (NSCR) and Metro Manila Subway; he elsewhere gave ₱191.3 billion for the pair, without reconciling it. He cited ₱123.8 billion for NSCR, and compared rail figures of ₱77.9 billion (2025), ₱55.3 billion (2026) and ₱197.3 billion (FY2027), calling the change ₱141.96 billion or 256.5%; the bases were not established as identical. Suntay described the NSCR integrated cost as ₱440.881 billion initially, ₱777.55 billion in 2018 and ₱873.61 billion in 2022, a stated ₱432.73 billion or 98.2% rise. Suntay asked for total government exposure, interest, commitment fees and penalties on foreign-assisted loans, and total accomplishments; Ongchuan distinguished construction progress from right-of-way measures and different project segments. He reported overall construction at 57.11% in July 2025 and 62.33% in July 2026, and the Malolos–Valenzuela reach separately at 82.49% and 87.8%, respectively. He said payments followed progress billing and agreed to provide cost, financing and accomplishment data, but gave no total exposure or interest amount. Ongchuan said the planned NSCR length had expanded and DOTr sought additional funding to protect it from being defunded. On the subway figure, Suntay described the FY2027 allocation as a 230.8% increase. Ongchuan gave the 33-km Valenzuela-to-airport line a last-quarter 2031 operating target, and 2033 as the NSCR north section full-operation target. For the subway, Suntay stated one FY2027 NEP figure of ₱67.442 billion (also rounded to ₱67.44 billion), comprising ₱26.71 billion in loans and ₱40.73 billion in government counterpart funding; he requested milestone, billing and right-of-way (ROW) data, and Ongchuan undertook to submit it by Friday. Historical amounts cited were ₱68.4 billion (2024), ₱7.8 billion (2025) and ₱20.38 billion (2026). A separate DOTr distribution account gave 72.4% rail under OSEC, 6.7% maritime infrastructure and 6.1% land transport, plus ₱18,137 million for maritime infrastructure; those are the sponsor’s stated bases, not a reconciliation of Suntay’s shares.

Representative Sergio C. Dagooc’s question on operator loan repayment elicited that FY2026 included ₱1.5 billion amortization support, with ₱600 million for public utility vehicle (PUV) loans at ₱20,000 monthly for three months and about ₱450 million for fuel discounts at roughly ₱12 per liter; proposed FY2027 amortization was ₱1.7 billion. Ongchuan said the FY2027 NEP omitted DOTr’s proposed ₱5 billion fuel subsidy and separate ₱5 billion Service Contracting Program (SCP) (₱4 billion land, ₱1 billion maritime); FY2026 maritime service contracting had ₱200 million, while its FY2027 component was omitted. Dagooc reported that the FY2026 maritime service reached Dinagat and Siargao for ten days and reduced fares by ₱60. He sought restoration and Ongchuan supported seeking it, with no adoption. Representative Percival “Perci” Cendaña asked about absent FY2027 EDSA Carousel funding; Ongchuan said a ₱1.7 billion restoration request had been submitted. The FY2027 service-contracting and fuel-subsidy programs remained unfunded; Cendaña supported restoring them, with no amount stated in that exchange. Separate accounts described a possible ₱20,000 monthly PUV amortization subsidy, a current ₱450 million fuel-discount program at ₱12 per liter with Department of Energy (DOE) assistance, and a ₱20 million Muntinlupa road-safety park. Continuation of the fuel discount in 2027 depended on Congress funding the fuel-subsidy program. The Road Safety Action Plan had no allocated funds; Cendaña pressed for support and Ongchuan said he relied on Congress, while proposing school and student-permit road-safety instruction and the park as a model for replication in Cebu, Bohol and Iloilo. Cendaña’s right-of-way (ROW) question elicited ₱2.7 billion NEP for NSCR and a stated ₱30 billion 2027 requirement, but the answer did not clarify whether the latter covered NSCR alone or both NSCR and the subway. In a separate timeline exchange, Ongchuan said inadequate ROW funding would delay both projects by at least two years, estimating NSCR completion in 2033–2035 and the subway in 2031–2033; if DOTr received the additional funding it sought, the previous timelines might still be met. These were conditional estimates, not an adopted schedule change.

The Maritime Industry Authority (MARINA) FY2027 Maritime Industry Regulatory and Supervision Program was ₱904 million, including ₱61.268 million for ship inspection and enforcement. Representative Dadah Kiram Ismula’s questions prompted a promise to collect certification, suspension and violation data from MARINA regional offices. Representative Sarah Jane I. Elago questioned relocation funding and facilities. Sponsor Representative Reynante U. Arrogancia said projects would not proceed without clear relocation sites and that 27,333 planned housing units matched 27,333 affected households; Phase 2 funding was awaited for four of six South Long Haul projects. Elago urged more funding for the National Housing Authority (NHA), cited the reported 11.28% of housing awards, and asked for school, livelihood, utility and site details while advocating on-site relocation where possible. Arrogancia said the sites had needed facilities and child-development-center funds. Elago cited ₱10,000–₱15,000 assistance per affected family; Arrogancia identified the Right-of-Way Fund and government funds as sources. Her NHA funding appeal was unquantified; the FY2027 NEP fuel-subsidy entry was ₱0 and no restoration amount was stated. For active transport, Tinio identified ₱33.856 million FY2027 NEP against DOTr’s ₱1.2 billion request and restoration proposal, not an additional amount; the current allocation was estimated for about 5 km versus about 180 km under the request. Historical figures cited were ₱1.316 billion during Bayanihan II and a separate ₱1.09 billion/498-km calculation whose basis was not reconciled; the series for 2022–26 was ₱2 billion, ₱705 million, ₱1 billion, ₱60 million and ₱69 million. Ongchuan gave pathway estimates of ₱10 million/km (Class 1), ₱5.4 million/km (Class 2) and ₱2.5 million/km (Class 3); Tinio’s distinct calculation was about ₱2.1 million/km. No restoration outcome was recorded.

Energy Regulatory Commission (ERC): Take-up and sponsorship. Representative Daphne A. Lagon moved to consider the proposed budget of the Energy Regulatory Commission (ERC). Deputy Speaker Janette L. Garin heard no objection and opened sponsorship, debate, and interpellation. Lagon introduced Representative Arnie B. Fuentebella, who was recognized to sponsor the ERC budget. The procedural take-up opened debate; it did not approve an appropriation.

Rep. Presley C. De Jesus: Rate-reset and capital-expenditure backlogs. De Jesus cited more than a decade of delay in distribution rate resets and a roughly 12-year lag for electric-cooperative capital-expenditure applications, with the oldest dating to 2013–2014. Fuentebella said ERC had made 170 capital-expenditure decisions in 2026. On a previously reported backlog of 107 applications involving 62 cooperatives, he cited 82 cooperative cases and an average of about 30 new cases each year, and offered to submit decision data.

Under the revised rules, ERC restarted at the first regulatory period. Fuentebella said ERC had issued a final decision on Cotabato Light’s first regulatory-period application and resolved the CEPALCO case. Proceedings involving Meralco and Dagupan Electric Corporation remained open, with completion targeted within 2026. He said the remaining private-utility groups were under review. Separately, he gave a first-quarter-2027 target for the electric-cooperative rate-reset schedule, while the ongoing private distribution-utility resets proceeded under the current 2026–2029 regulatory period. De Jesus asked when consumers would see revised distribution rates; Fuentebella said an ERC decision would take effect in the next billing cycle.

Transmission review and capital recovery. De Jesus asked about the National Grid Corporation of the Philippines (NGCP)’s fifth and sixth regulatory periods. Fuentebella said ERC issued its fifth-period decision on January 30, 2026, and addressed a motion for reconsideration on May 13. NGCP had filed for the sixth period, covering 2028–2032, on May 14, 2026; Fuentebella said ERC expected the next review to proceed on a timely schedule, with a first-quarter-next-year target.

De Jesus asked when consumers begin paying a return on approved transmission capital expenditures. Fuentebella said returns accrue as projects are implemented, in proportion to the capital introduced, rather than only after construction is complete. He said ERC examines whether consumers pay for infrastructure that has not delivered service during rate resets, underscoring the need for timely reviews.

Regional secondary price cap. De Jesus asked why ERC shifted the Secondary Price Cap (SPC) from a nationwide calculation to regional application in the Visayas and Mindanao, retroactive to the August 2026 billing period. Fuentebella explained that lower Luzon prices could suppress the nationwide rolling average and prevent the trigger from being reached despite severe regional price spikes. He said the regional safeguard was being monitored weekly in coordination with the market operator.

Fuentebella described the regional cap as temporary and condition-dependent, while saying ERC was working to make it permanent. He also said ERC would restore standard system-wide application once price divergence subsided and rolling averages returned to normal. De Jesus agreed that a cap could provide immediate consumer relief but should not indefinitely replace fixing generation and transmission constraints. Fuentebella agreed and pointed to delayed interconnection and transmission upgrades, along with faster baseload and renewable capacity, as longer-term measures.

Generator availability and compliance rules. De Jesus asked what authority ERC had over generating companies that repeatedly failed to remain available during forced outages. Fuentebella said ERC regulates generators under EPIRA through certificates of compliance and applicable technical and market requirements, and sets technology-specific allowable unplanned-outage days.

Asked why reliability standards were revised, Fuentebella said the prior benchmark needed to reflect actual operating experience and differences among technologies. He said the revised rules set technology-specific outage limits, require adherence to planned-maintenance schedules and post-maintenance reports, and provide compliance plans and administrative sanctions for persistent non-compliance.

Rep. Tobias "Toby" M. Tiangco: VAT relief for system loss. Representative Tobias “Toby” M. Tiangco asked whether the September resolution removing value-added tax (VAT) from system loss would reach consumers and when the relief would appear. Sponsor Representative Arnie B. Fuentebella said implementation was expected in October billing and estimated that removing VAT from system loss would reduce a consumer’s bill by about ₱20 per month, based on computation. Tiangco understood the VAT change but asked separately about removing the non-technical system-loss charge. Fuentebella said the ERC had acted on VAT and was still studying the non-technical cap or threshold with the Department of Energy and the Bureau of Internal Revenue; the cap issue remained a work in progress.

Non-technical losses, access, and recovery credits. Tiangco focused on non-technical losses associated with pilferage and asked whether the ERC could remove that charge administratively or whether legislation was needed. Fuentebella said the non-technical cap and threshold were still under study, with electric cooperatives’ financial viability among the considerations. Tiangco also raised barriers to legal connections for informal-settler households, including title or private-land-owner consent requirements that could leave residents without service and encourage dangerous connections. Fuentebella said the ERC had amended its Magna Carta requirements effective September 10, 2026: applicants no longer needed a land title and could instead provide barangay certification that they resided there. Tiangco then questioned whether utilities recovered pilfered electricity from consumers twice—through system-loss charges and later recovery from the person caught—and asked how the ERC tracked credits. Fuentebella described a rebate formula that deducts monthly reported pilferage recovery from the generation charge.

Rate-increase pause and timetable. Tiangco asked the ERC to hold electricity-rate increases until non-technical system losses were resolved, then narrowed the request to corporate distribution utilities. Fuentebella agreed with the concern and said he would commit especially on the private-utility side, while emphasizing that the ERC still had to consult distribution utilities and consider other rate factors, including generation and transmission charges. He could not give a firm timetable; he said the process might not produce a result before year-end. No formal rate-freeze order was made in this exchange. Tiangco said he was satisfied with the answers and supported the ERC budget, citing the agency’s quick action on the connection-documentation issue.

Rep. Sarah Jane I. Elago: Meralco rate-reset application. Representative Sarah Jane I. Elago asked about Manila Electric Company (Meralco)’s pending rate-reset application: a requested ₱532.13 billion revenue requirement to be collected from consumers from 2027 through 2030, and a proposed 2027 maximum average price of ₱2.3436 per kilowatt-hour, up from ₱1.35. She asked why the formal decision had moved from an earlier August–September target to year-end. Fuentebella attributed the delay to the application’s scale, capital-expenditure filings and refiled assets requiring verification; he said ERC had shortened its usual 18-month process to eight months.

Feed-in tariff allowance and consumer charges. Elago questioned the August 2026 provisional Feed-in Tariff Allowance (FIT-All) rate increase from ₱0.2011 to ₱0.3359 per kilowatt-hour (67%), which she said meant about ₱67.18 monthly for a household using 200 kilowatt-hours. She contrasted the approved rate with TransCo’s original ₱0.2154-per-kilowatt-hour application. Fuentebella said an additional amount had been sought because the FIT-All fund faced a shortfall, and described collection delays after it was suspended from December 2022 through January 2024. He reported ₱356 million in outstanding payables as of August and expected full payment by December. Elago requested the full collection figures, and Fuentebella agreed to submit them. When she asked whether ERC would remove the charge and find another funding source, he agreed that consumers bore the burden and described the rate reset as an accountability and transparency measure; no removal or replacement-funding decision was stated.

Consumer complaints and resolution. Elago said her proposed Resolution No. 1189, calling for scrutiny of FIT-All collections, fees and consumer billing complaints, had not yet been taken up in Congress. Citing ERC’s report for 2001–2026, she said 3,093 complaints—81% of those received—were classified as decided, closed or terminated, and asked how those classifications were determined and how long cases took on average. Fuentebella said disposition depended on the complaint, settlement and any recalculation of disputed billing, but gave no average processing time. Asked whether ERC consulted utilities and consumers on complaint-resolution measures, he said consultation was not required and ERC was focused on shortening the decision timeframe.

More Power rate and Visayas outages. Elago asked about More Power’s July 2026 Iloilo City residential-rate increase from ₱13.91 to ₱14.349 per kilowatt-hour. Fuentebella attributed Visayas supply tightness to plant breakdowns, said the Department of Energy (DOE) held the outage details, and promised to provide them to colleagues. Elago closed by calling for review of laws and stronger public-interest protections for electricity consumers.

Rep. Sergio C. Dagooc: Cooperative infrastructure and system-loss oversight. Representative Sergio C. Dagooc described a Department of Energy initiative of about ₱7 billion in loans, particularly for electric cooperatives, to fund infrastructure needed to reduce technical losses. He asked whether the Energy Regulatory Commission (ERC) should create a special unit to speed review and approval of capital-expenditure petitions for system-loss reduction; sponsor Representative Arnie B. Fuentebella agreed. The loan initiative was a financing proposal for cooperatives, not an ERC appropriation.

Reserve-market oversight and alleged gaming. Dagooc raised a concern about a generating plant that he said had offered capacity repeatedly into ancillary-services procurement and described a possible strategy of placing capacity in the reserve market while keeping other plants idle. He asked whether separate price-determination rules applied in the wholesale electricity spot and reserve markets. These were allegations and a request for regulatory review, not established findings. Fuentebella said the rules differed, agreed on closer market monitoring, and later said the ERC had ordered its PMC to investigate the matter and would review the policy.

Cooperative payment flexibility and disconnections. Dagooc said four billing periods of deferred payment could exceed the working capital of smaller electric cooperatives and asked the ERC to use each distribution utility’s monthly financial and statistical reports and cash-flow data to allow a shorter period where needed. Fuentebella agreed with the concern but said the no-disconnection policy was being lifted as of October, except for residential consumers using 200 kilowatt-hours or less. The sponsor did not approve an individualized deferral in this exchange.

Microgrid permits and the pending Dinagat project. Dagooc asked the ERC to simplify plant-permit requirements for small island microgrids, noting that small facilities faced requirements comparable to large plants. Fuentebella said the ERC had streamlined its microgrid rules and issued them in April 2026. Dagooc cited a donated 50-kilowatt hybrid solar-and-generator plant in Dinagat that had not begun operating because its permit remained unapproved; no approval or grant was reported in the exchange.

NGCP franchise-tax pass-through and refund dispute. Dagooc said the National Grid Corporation of the Philippines (NGCP) franchise tax passed through to distribution utilities amounted to ₱1.4 billion annually and was further subjected to 12% value-added tax (VAT). He sought refunds for what he characterized as improper collections, arguing that the franchise statute placed the tax on NGCP and that the ERC’s Resolution No. 10, series of 2023, had suspended the pass-through. Fuentebella said the ERC was reviewing the law and whether retroactive action was possible. Dagooc disputed that retroactivity was necessary because, in his view, the charge should not have been passed through in the first place. Fuentebella said an earlier ERC resolution had authorized the practice and that the agency was proceeding carefully to avoid exposing implementers to legal action. No refund or new order was issued in this exchange.

Minority Leader Marcelino C. Libanan: Congestion charges and interim suspension. Minority Leader Marcelino C. Libanan questioned Energy Regulatory Commission (ERC) sponsor Representative Arnie B. Fuentebella about line-loss and congestion charges to electric cooperatives in Regions 6 and 8 for electricity he said was not delivered because of congestion on the Luzon grid. Citing a local electric-cooperative bill, he said a ₱13 charge rose to ₱18, and warned that an unpaid cooperative could face ₱25 per kilowatt-hour. He called the charges unfair to consumers who did not receive the power.

Libanan cited ERC’s August 13, 2026 interim measure suspending collection for trading intervals when congestion causes different system marginal prices, subject to the order’s specified conditions rather than a blanket suspension. Fuentebella confirmed the conditions and said ERC had ordered IEMOP to recalculate net-settlement-surplus allocations.

Recalculation, conditional rebates, and permanent solution. Fuentebella said the recalculation would reach back to June 2021. If the investigation found amounts that should be returned, ERC would rebate affected consumers; this was conditional on the findings, not an order already directing refunds. Libanan said IEMOP had told him it did not recognize the suspension and that it lasted only 30 days. Fuentebella distinguished the new order, effective in September, from prior-month collections and said IEMOP had to follow the new computation.

Libanan asked for the total collected since June 2021 and distributed among generating companies. Fuentebella said ERC would obtain IEMOP’s calculation and provide it to Libanan, and committed to submit the total within the month. When Libanan asked for reimbursement to consumers, Fuentebella said ERC would study whether the calculation showed grounds to return money. He forecast a possible permanent solution by October, subject to the calculation and process, with action or implementation later in the year; no permanent solution or reimbursement had yet been reported in this exchange.

Disposition: Disposition. Minority Leader Marcelino C. Libanan moved to terminate debate and interpellation on the proposed Energy Regulatory Commission (ERC) budget; Representative Daphne A. Lagon joined the motion for the majority. Deputy Speaker Janette L. Garin restated the joint motion, called for objections, heard none, declared it carried, and terminated ERC interpellations. This closed debate on the proposal; it did not approve the appropriation.

CSC and CESB opening: Merit-based public service and institutional continuity. Teves described the CSC’s constitutional role as guiding public-service appointments and personnel actions by merit and fitness, while promoting professionalism, integrity, efficiency, responsiveness and accountability. He said the budget would support human-resource governance, workplace professionalization and administrative justice, as well as the continuing Philippine Civil Service Modernization Project for digital conversion of human-resources systems and records.

For the CESB, he emphasized developing and maintaining a competent executive service that supports continuity and professionalism in government leadership.

Rep. Renee Louise M. Co: Eligibility updates and political reassignment. Representative Renee Louise M. Co asked about new Civil Service Commission (CSC) eligibility rules for Sangguniang Kabataan (SK) officers seeking first-level career-service positions and updated eligibility guidelines for K-to-12 graduates. She requested copies of the guidelines and a report on the entry of additional SK officers and K-to-12 graduates into civil-service positions after the changes. Sponsor Representative Jose “Bong” J. Teves Jr. promised copies of the resolutions the next day, then said the requested copies and report would be provided the following morning or during the day.

Co also asked what the CSC could do when local officials reassign employees to unrelated duties after a change in local chief executive. Teves said that moving an employee away from the appointed plantilla position—for example, a budget officer reassigned as a collector or an engineer placed in solid waste—was prohibited under Rule 4, Section 13 of the 2025 appointments and personnel-action rules, could constitute constructive dismissal, and could be the basis for a complaint to the CSC. Co thanked him and said the clarification could guide affected public servants and address politically motivated reassignments.

Disposition: Consideration and disposition. Representative Renee Louise M. Co moved to terminate deliberations on the Civil Service Commission (CSC) budget, noting that no Minority members had further questions. Representative Aniela Bianca D. Tolentino joined the motion for the Majority. Deputy Speaker Raymond Democrito C. Mendoza stated the joint motion, heard no objection and declared the CSC interpellations terminated, including those for the Career Executive Service Board (CESB). The disposition ended interpellations; it did not itself approve an appropriation.

DOTr opening: Mobility, access and inclusive development. Ongchuan framed transportation as affecting people’s time, opportunity and dignity, in addition to infrastructure. He said modern railways, safer roads, efficient airports and stronger maritime facilities were intended to ease congestion, improve safety and connect communities from urban centers to remote islands.

He linked reliable transport to moving people and goods, economic activity, market access for farmers and fisherfolk, jobs closer to workers, mobility, productivity and inclusive development across regions.

Rep. Sergio C. Dagooc: Fuel surcharges and airline fare monitoring. Dagooc asked how airline fuel surcharges were triggered, suspended, and reflected in ticket prices. Ongchuan said a surcharge could be imposed after a 20% increase in global fuel prices; the review interval had shifted from 30 days to 15 days, returning to 30 days when Jet A1 fell below $100 per barrel. When Dagooc asked for fare amounts, Ongchuan offered the complete surcharge matrix in writing and gave ranges of ₱457–₱1,336 for domestic flights and ₱1,509–₱11,220 for international flights. He said the Civil Aeronautics Board (CAB) monitored fare changes online and that airlines submitted written reports to CAB. He agreed that surcharge reductions should be reflected in ticket prices.

Rep. Percival "Perci" Cendaña: Railway delivery timelines. Ongchuan said inadequate ROW funding would delay both NSCR and the Metro Manila Subway Project by at least two years. He gave revised completion estimates of 2033 to 2035 for NSCR and 2031 to 2033 for the subway. If DOTr received the additional funding it sought, he said the projects might still meet their previous timelines. These were conditional estimates, not completed restoration or a schedule change adopted in this exchange.

Bus operators and passenger service. Cendaña raised provincial and city bus operators’ call to lift the Land Transportation Franchising and Regulatory Board’s suspended fare-adjustment order. He relayed the groups’ warning that continued high operating costs could make operations impossible, while clarifying their statement was not a threat to stop service. Ongchuan said DOTr was continuing dialogue with provincial bus operators and currently provided free expressway tolls to them.

Road safety implementation. Ongchuan proposed working with the Department of Education, the Technical Education and Skills Development Authority, and schools to teach road safety, including seminars before student-permit applications. He described the Muntinlupa park’s traffic signals and interactive demonstrations as an educational model. Cendaña pressed the need to fund the plan and protect commuters and pedestrians.

Rep. Jesus "Bong" C. Suntay: Suspended rail services and corridor protection. Suntay asked why Philippine National Railways (PNR) services were suspended while NSCR construction proceeded, noting the Alabang–Calamba service stopped in October 2023 and the Governor Pascual–Tutuban and Tutuban–Alabang services in March 2024. Ongchuan said the suspensions were temporary measures to speed NSCR construction; he described an existing live construction contract on the affected segment. Suntay questioned the passenger displacement because work had started elsewhere and raised the risk of renewed settlement along cleared, acquired right-of-way. Ongchuan said the corridor had been cleared and fenced and that the acquired right-of-way would serve the future NSCR north section.

Ongchuan identified right-of-way and funding constraints in the construction discussion and later stated the NSCR north section alone was targeted for full operation in 2033. With those constraints still part of the exchange, this was a target rather than a guaranteed date, and it was not a separate restoration date for the suspended PNR services; no PNR restoration date was given.

Fuel costs, affordability and a longer-term fare policy. Suntay cited operators’ report that fuel made up 45–60% of operating costs and that regulated fares had not kept pace with operating expenses; he also pointed to the ₱755 NCR non-agricultural minimum wage. He argued that the choice between keeping fares affordable and keeping services viable required a durable policy rather than recurring subsidies.

Suntay said the proposed ₱10-per-liter fuel subsidy was inadequate against diesel prices of ₱54 per liter at the last fare increase and ₱94 at the time of the hearing. Ongchuan replied that the fuel discount had been raised to ₱12 per liter and described a fare increase as a last resort because it would burden commuters. Suntay pressed for an alternative between fare increases and subsidy; the sponsor defended the near-term support but did not set out a broader long-term fare policy in this exchange.

Rep. Dadah Kiram Ismula: MV June Aster casualty report and vessel suspensions. Ismula cited 77 reported deaths in the MV June Aster tragedy and asked whether the cause had been formally determined. Arrogancia said an interim marine-casualty investigation was available and the final report was expected by month’s end; it had not yet been completed.

Ismula asked why the entire Atienza Interisland Ferries fleet had not been grounded. Arrogancia said two operating Atienza vessels had their safety certificates suspended after verification and inspection. He said MARINA had no automatic fleet-suspension policy: suspension depended on vessel-by-vessel compliance verification. He stated fleet grounding would apply if the company safety-management system failed the international safety-management code or if major safety deficiencies were identified across all of the company’s vessels. Remaining vessels would undergo safety-verification inspection.

Safety reforms, policy data, and implementation. Ismula asked what reforms would follow the casualty. Arrogancia cited renewed safety protocols, emergency-readiness evaluations, and fast-tracking rules for carriage of electric and hybrid vehicles. Ismula noted a FY2027 NEP target of seven policies to be formulated, updated, issued, and distributed; Arrogancia said the target had been reached and identified three policies related to maritime education and training for seafarers, without listing seven separate policies. Ismula requested the supporting policy data and asked for it before second reading; Arrogancia said MARINA would submit the necessary documents, without setting a delivery deadline. He also said stakeholder consultations were held regularly, fines and penalties had been increased for safety violations, and MARINA focused on drills and implementation.

Rep. Sarah Jane I. Elago: Uplift Committee and petroleum-tax position. Elago challenged DOTr, as the transport-sector voice on the Uplift Committee, to state a position on suspending petroleum excise taxes amid fuel-cost pressure, including drivers’ protests and fuel costs she said represented 40–60% of bus operating costs. She clarified she was not asking DOTr itself to exercise tax powers, but to advocate within the committee. Arrogancia said taxation was outside the department’s mandate, while agreeing on the need to lower fuel prices; after Elago renewed her request for a clear position, he said DOTr would study the matter to help her call. No DOTr recommendation to suspend taxes was made.

Gender-based harassment safeguards in public transport. On gender-based sexual harassment protections in public transport, Elago asked how the Land Transportation Franchising and Regulatory Board (LTFRB) monitored incidents, supported victims and engaged ride-hailing services. Arrogancia described undercover “ghost rider” monitoring, a hotline, driver and conductor seminars, confirmed regular free training and coverage of ride-hailing services, and described show-cause orders for noncooperating operators. Elago requested a detailed report on implementation and use of gender-and-development funds, including coordination and materials for ride-hailing drivers; she also asked whether Land Transportation Office (LTO) gender-and-development offices operated nationwide. Arrogancia said they did, and Elago requested a complete report on the offices’ work and gender-mainstreaming monitoring.

Ninoy Aquino International Airport fees and requested review. Elago said Ninoy Aquino International Airport (NAIA) passenger fees rose effective September 14, 2025: international terminal fees from ₱550 to ₱950 and domestic terminal fees from ₱200 to ₱390; she also cited increases in other airport charges and asked for a review amid higher fuel costs. Arrogancia replied that the memorandum concerning public operators’ Administrative Order No. 1 remained pending before the Supreme Court, so no simplified fee-reduction commitment was stated. Elago requested written positions from relevant agencies and a breakdown of airport-fee revenues for 2025 and 2026 to date. These are passenger-fee changes and oversight requests, not DOTr budget allocations.

Rep. Renee Louise M. Co: Commute-to-work findings and public-transport supply. Representative Renee Louise M. Co asked what the Department of Transportation (DOTr) had learned a year after its Commute to Work Memo, recalling then Acting Secretary Giovanni Z. Lopez’s September 16, 2025 commute on Commonwealth. Sponsor Representative Reynante U. Arrogancia described the Secretary’s observations of inadequate facilities and vehicles, crowding, and the need for better train intervals, but did not present a quantified post-memo assessment.

Co compared the figures the DOTr supplied: 2025 traditional and modern public utility jeepney (PUJ) counts of 128,864 and 11,954 against 2026 counts of 110,346 and 8,960, respectively, which she described as decreases of 18,518 and 2,994. Arrogancia said those figures reflected registrations, not the number of vehicles actually operating, and maintained that supply had not declined; he cited older records and the continued operation of vehicles under an extension. Co asked for actual daily operating counts. Arrogancia said supply was generally sufficient, though rush-hour queues still needed improvement.

To support her concern, Co cited a February 2026 commuters’ network estimate of 49 million daily public-transport users, including 25 million jeepney users, and commuters waiting more than an hour. She also estimated that about 190,000 phased-out jeepneys represented 3.7 million passenger places lost, then separately estimated 38 million daily passenger-capacity loss using ten trips per vehicle. Arrogancia’s own capacity explanation gave 400–450 daily passengers for a modern jeepney and 200–250 for a traditional one, then applied 400–450 to 110,346 traditional units and 200–250 to 8,160 confirmed modern units. These differently labeled inputs were not reconciled in the exchange. Co requested updated registration and actual operating data for jeepneys and urban and provincial buses; Arrogancia agreed to submit the requested reports.

Modernization-program flaws and proposed World Bank framework. Co asked whether the DOTr had identified flaws in its public-transport modernization program. Arrogancia acknowledged that new vehicles had been purchased before route rationalization was completed; Co said this matched a key criticism of the program and also questioned the purchase of Euro 4 units.

Co then asked about a World Bank proposal for an area-focused urban public-transport modernization program, including an electric-vehicle leasing framework. Arrogancia said the World Bank had approached the DOTr the previous year, the partnership remained under discussion, and no signed agreement or final framework existed. He said the DOTr would control and implement it and agreed to provide the requested documentation.

On old jeepneys, Arrogancia said scrapping would continue and that operators entering modernization would sell their old units to the DOTr, with the payment contributing to equity for a new vehicle. Co warned that a leasing-company model could concentrate ownership and exclude small operators; she asked for further discussion and favored local manufacturing and rehabilitation over scrapping. The framework remained proposed, with no adoption reported.

LRT-1 concession penalties and performance measures. Co cited ₱27 million in penalties against the Light Rail Transit Line 1 (LRT-1) concessionaire for 108 failures to meet its 97% baseline performance target since 2015, and nearly ₱95 million in penalties, including violations involving elevators, escalators, and train cleaning. She questioned how the concession agreement measured and verified these counts, noting 544 counts that she said did not align with commuter experience. Arrogancia said the measures were part of the concession-agreement formula and were monitored by the DOTr.

Co also questioned the crowding key performance indicator (KPI) and the absence of stated rectification times and failure notices. Arrogancia said crowding indicated too few trains deployed by the concessionaire and repeated crowding could show poor performance; he said the agency monitored it. Co urged transparent performance indicators and an open avenue for LRT-1 customer complaints, then reiterated her preference for inclusive service, local manufacturing, and rehabilitating rather than scrapping vehicles. No further response to the complaints-channel request appears in the exchange.

Rep. Antonio L. Tinio: Cycling, pedestrian and accessibility standards. Tinio supported active transport but pressed for safe, accessible infrastructure for cyclists, pedestrians and persons with disabilities (PWDs), citing uneven or missing sidewalks and hazards. He cited the special provision’s requirement for smooth, hazard-free pathways with durable physical separation from mixed traffic and questioned whether pavement markings alone met that standard. Ongchuan described Class 2 paths as having separators and Class 1 as new pathways and sidewalks with PWD access, including sidewalk expansion. The exchange did not establish a specific design or implementation commitment.

Disposition: Consideration and disposition. Minority Leader Representative Marcelino C. Libanan said there were no further Minority interpellators and moved to terminate interpellations and debate on the Department of Transportation (DOTr) and its attached agencies. Representative Brian Poe, speaking for the Majority, joined the motion. Deputy Speaker Yevgeny Vincente B. Emano restated the joint motion, heard no objection and approved it, ending DOTr interpellations; this was not approval of an appropriation. Poe then moved to suspend consideration of House Bill No. 10858, which Emano approved after hearing no objection. Poe next moved to suspend the session until 9 a.m.; Emano approved and stated the session was suspended. This was a suspension, not an adjournment.