Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
Electricity is no longer a mere convenience. It is a fundamental driver of modern life, 
enabling education, commerce, health care, communication, and industry development. In the 
context of national development, particularly for growing areas like the Province of Camarines 
Sur, access to a stable, efficient, and competitively priced power supply is essential. 
Communities cannot thrive amid unreliable or monopolized electricity services. They require 
dependable infrastructure backed by sound policy and a clear mandate for public service.  
Republic Act No. 9136, otherwise known as the “Electric Power Industry Reform Act 
of 2001 (EPIRA),” brought major reforms to the Philippine energy sector.1 It paved the way for 
retail competition and open access among end-users to achieve lower electricity costs, 
improve service quality, promote transparency, and ensure fair market access. 
This bill seeks to grant a legislative franchise to the Bicol Light and Power Corporation 
to construct, install, establish, operate, own, manage, and maintain an electric power 
distribution system in the municipalities of Baao, Balatan, Bato, Buhi, Bula, Nabua, and 
the City of Iriga, all located in the Province of Camarines Sur. The franchise is a direct 
response to persistent challenges in the region, including limited access to electricity, lack of 
competition, and uneven pricing. The measure aims to:  
•
Ensure reliable and affordable access to electric power in underserved areas;
•
Uphold the principles of free and fair competition in the distribution of electricity;
•
Establish accountability mechanisms and performance standards for the grantee;
•
Promote local employment and economic activity through stable electricity
infrastructure; and
•
Align with the national policy of inclusive growth and rural development.
Granting this franchise is a crucial step toward achieving energy security and
empowering local communities. It also reflects the government’s commitment to expanding 
energy access and ensuring that no region is left behind in the shift toward a more modern 
and inclusive power sector.  
Notably, this proposed measure was approved and transmitted to the Senate during 
the 17th and 18th Congresses and subsequently refiled during the 19th Congress, reflecting 
growing recognition of the need for energy reforms in the province.  
1 Republic Act No. 9136, Electric Power Industry Reform Act of 2001. https://www.officialgazette.gov.ph/2001/06/08/republic-
act-no-9136/ 
August 14, 2025
2:10 pm
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In view of the foregoing, the immediate and favorable passage of this bill is earnestly 
sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT GRANTING THE BICOL LIGHT AND POWER CORPORATION A FRANCHISE 
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE, AND MAINTAIN 
A POWER DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER 
TO THE END USERS IN THE MUNICIPALITIES OF BAAO, BALATAN, BATO, BUHI, 
BULA, NABUA, AND THE CITY OF IRIGA, PROVINCE OF CAMARINES SUR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Nature and Scope of Franchise. – Subject to the provisions of the Constitution 
and applicable laws, rules and regulations, there is hereby granted to the Bicol Light and 
Power Corporation, hereunder referred to as the Grantee, its successors or assignees, a 
franchise to construct, install, establish, operate, own, manage and maintain in the public 
interest and commercial purposes, a distribution system for the conveyance of electric power 
to the end users in the Municipalities of Baao, Balatan, Bato, Buhi, Bula, Nabua, and the City 
of Iriga, Province of Camarines Sur. 
As used in this Act, distribution system refers to the system of wires and associated 
facilities including subtransmission lines belonging to a franchised distribution utility extending 
between the delivery point on the national transmission system or generating facility and the 
metering point/facility of the end users. 
SECTION 2. Manner of Operations of Facilities. – All electric distribution facilities, lines, and 
systems for electric services constructed, installed, established, operated, owned, managed 
and maintained by the Grantee, its successors or assignees, shall be operated or maintained 
at all times in a superior manner, and it shall be the duty of the Grantee, its successors or 
assignees, whenever required to do so by the Energy Regulatory Commission (ERC), or its 
legal successor, or the Department of Energy (DOE), or its legal successor, or any other 
government agency concerned to modify, improve and change such facilities or systems in 
such manner and to such extent as the progress in science or technology and improvements 
or innovations in the electric power services may render reasonable and proper. 
Whenever practicable, and for purposes of maintaining order, safety and aesthetics 
along the highways, roads, streets, alleys or right of way, the Grantee may allow the use of 
free spaces in its poles, facilities, or right of way by interested parties upon reasonable 
compensation to the Grantee considering the costs incurred to accommodate and administer 
the use of the Grantee’s facilities by such parties. The ERC shall decide in case of dispute or 
disagreement between the parties. 
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SECTION 3. Authority of the Energy Regulatory Commission (ERC). – The Grantee shall 
secure from the ERC or any government agency having jurisdiction over its operations, a 
Certificate of Public Convenience and Necessity (CPCN) and any other license, permit or 
authority indispensable for the construction and operation of the electric power distribution 
system. 
 
SECTION 4. Excavation and Restoration Works. – For the purpose of erecting and 
maintaining the poles or other supports for wires or other conductors, or for the purpose of 
laying and maintaining said facilities, wires, cables or other conductors, it shall be lawful for 
the Grantee, its successors or assignees, with the prior approval of the Department of Public 
Works and Highways (DPWH) or the local government unit (LGU) concerned, as may be 
appropriate, to make excavations or lay conduits in any of the public places, highways, roads, 
streets, lanes, alleys, avenues, sidewalks, or bridges of the province, cities or municipalities: 
Provided, however, That a public place, highway, road, street, lane, alley, avenue, sidewalk, 
or bridge disturbed, altered, or changed by reason of erection of poles or other supports or the 
underground laying of wires, other conductors or conduits, shall be repaired and replaced in 
workmanlike manner by the Grantee, its successors or assignees, in accordance with the 
standards set by the DPWH or the LGU concerned. Should the Grantee, its successors or 
assignees, after the ten (10)-day notice from the grant of authority, fail, refuse or neglect to 
repair or replace any part of public place, highway, road, street, lane, alley, avenue, sidewalk, 
or bridge altered, changed, or disturbed by the said Grantee, its successors or assignees, the 
DPWH or the LGU concerned shall have the right to have the same repaired or replaced in 
good order and condition and charge the Grantee, its successors or assignees, double the 
amount of the cost and expenses for such repair or replacement. 
 
SECTION 5. Responsibility to the Public. – The Grantee shall supply electricity to its captive 
market in the least costly manner. In the interest of the public good and as far as feasible and 
whenever required by the ERC, the Grantee shall modify, improve, or change its facilities, 
poles, lines, systems and equipment for the purpose of providing efficient and reliable service 
and reduced electricity costs. The Grantee shall charge reasonable and just power rates for 
its services to all types of consumers within its franchised area in order that businesses and 
industries shall be able to compete. 
 
 
The Grantee is required to source and procure its power requirements in accordance 
with the applicable rules and regulations of the DOE and ERC: Provided, That  immediately 
after the enactment of this Act, that the Grantee may be allowed to avail of negotiated 
procurement of emergency power supply under the applicable circulars, rules, or regulations 
allowing emergency procurement issued by the DOE, the ERC, or their legal successors: 
Provided, further, That such emergency contracts shall only be for a non-extendible period of 
one (1) year and the rates must not be higher than the latest ERC-approved generation tariff 
for the same or similar technologies in the area. 
 
 
The Grantee shall have the obligation to provide open and nondiscriminatory access 
to its distribution system and services for any end user within its franchise area consistent with 
Republic Act (RA) No. 9136, otherwise known as the "Electric Power Industry Reform Act of 
2001". The Grantee shall not engage in any activity that will constitute an abuse of market 
power such as unfair trade practices, monopolistic schemes, and other activities that will 
hinder competitiveness of business and industries. 
 
SECTION 6. Rates for Services. – The retail rates and charges for the distribution of electric 
power by the Grantee to its end users shall be regulated and approved by the ERC or its legal 
successor. 
 
 
The Grantee shall identify and segregate in its electricity bill to the end users the 
components of the retail rate pursuant to RA 9136, unless otherwise amended. Such rates 


 
charged by the Grantee to the end users shall be made public and transparent. The Grantee 
shall implement lifeline rate for marginalized end users as mandated by RA No. 9136. 
 
 
The Grantee shall strictly comply with the systems loss cap prescribed by the ERC, 
subject to the transition provisions under Section 19 of this Act. 
 
SECTION  7. Promotion of Consumer Interests. – The Grantee shall establish a consumer 
desk that will handle consumer complaints and ensure adequate promotion of consumer 
interests. The Grantee shall act with dispatch on all complaints brought before it. 
 
 
The Grantee shall reduce the duration and frequency of interruptions in its network and 
in that regard, shall observe the System Average Interruption Frequency Index and System 
Average Interruption Duration Index imposed by the ERC. 
 
SECTION  8. Right of the Government. – A special right is hereby reserved for the President 
of the Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or 
disturbance of peace and order, to temporarily take over and operate the stations or facilities 
of the Grantee; to temporarily suspend the operation of any station or facility in the interest of 
public safety, security and public welfare; or to authorize the temporary use and operation 
thereof by any agency of the government, upon due compensation to the Grantee, for the use 
of the stations or facilities during the period when these shall be so operated. 
 
SECTION 9. Right of Eminent Domain. – Subject to the limitations and procedures 
prescribed by law, the Grantee is authorized to exercise the right of eminent domain insofar 
as it may be reasonably necessary for the efficient maintenance and operation of services. 
The Grantee is authorized to install and maintain its poles, wires, and other facilities over and 
across public property, including streets, highways, forest reserves, and other similar property 
of the Government of the Philippines, its branches, or any of its instrumentalities. The Grantee 
may acquire such private property as is actually necessary for the realization of the purposes 
for which this franchise is granted: Provided, That proper expropriation proceedings shall have 
been instituted and just compensation paid. 
 
SECTION 10. Term of Franchise. – This franchise shall be in effect for a period of twenty-
five (25) years from the date of the effectivity of this Act, unless sooner cancelled. This 
franchise shall be deemed ipso facto revoked in the event that the Grantee fails to comply with 
any of the following conditions: 
 
(a) commence operations within three (3) years from the approval of its operating permit 
by the ERC; 
 
(b) commence operations within five (5) years from the effectivity of this Act; and 
 
(c) operate continuously for two (2) years. 
 
SECTION 11. Warranty in Favor of the National and Local Governments. – The Grantee 
shall hold the national, provincial, city, and municipal governments of the Philippines free from 
all claims, accounts, demands, or actions arising from accidents causing injury to persons or 
damage to property, during the construction, installation, operation, and maintenance of the 
distribution system of the Grantee. 
 
SECTION  12. Liability for Damages. – The Grantee shall be liable for any injury to persons 
and damage to property arising from accidents by reason of any defective construction under 
this franchise or of any neglect or omission to keep its poles and wires in safe condition. 
 
SECTION 13. Commitment to Provide and Promote the Creation of Employment 


 
Opportunities. – The Grantee shall create employment opportunities and shall allow on-the-
job training in its franchise operations: Provided, That priority shall be accorded to the 
residents of the place where their principal office is located: Provided, further, That the Grantee 
shall follow the applicable labor standards and allowance entitlement under existing labor 
laws, rules, and regulations, and similar issuances: Provided, finally, That the employment 
opportunities or jobs created shall be reflected on the General Information Sheet (GIS) to be 
submitted to the Securities and Exchange Commission annually. 
 
SECTION 14. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. – The Grantee 
shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and 
privileges acquired thereunder to any person, firm, company, corporation or other commercial 
or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest 
of the Grantee be transferred, simultaneously or contemporaneously, to any person, firm, 
company, corporation, or entity without the prior approval of Congress. Congress shall be 
informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights 
and privileges acquired thereunder, or of the merger or transfer of the controlling interest of 
the Grantee, within sixty (60) days after the completion of the said transaction. Failure to report 
to Congress such change of ownership shall render the franchise ipso facto revoked. Any 
person or entity to which this franchise is sold, transferred, or assigned shall be subject to the 
same conditions, terms, restrictions, and limitations of this Act. 
 
SECTION 15. Dispersal of Ownership. – In accordance with the constitutional provision to 
encourage public participation in public utilities, the Grantee shall offer to Filipino citizens at 
least thirty percent (30%) or a higher percentage that may hereafter be provided by law of its 
outstanding capital stock in any securities exchange in the Philippines within five (5) years 
from the commencement of its operations: Provided, That in cases where public offer of shares 
is not applicable, the Grantee shall apply other methods of encouraging public participation by 
citizens and corporations operating public utilities as allowed by law: Provided, further, That 
the dispersal of ownership by a parent company of the Grantee shall be considered as 
compliance by the Grantee with this provision. Non-compliance therewith shall render the 
franchise ipso facto revoked. 
 
SECTION 16. Reportorial Requirement. – The Grantee shall submit an annual report to 
Congress, through the Committee on Legislative Franchises of the House of Representatives 
and the Committee on Public Services of the Senate, on its compliance with the terms and 
conditions of the franchise and on its operations on or before April 30 of every year during the 
term of the franchise.  
 
 
The annual report shall include an update on the roll-out, development, operation 
and/or expansion of business; audited financial statements; latest GIS; certification of the ERC 
on the status of its permits and operations; and an update on the dispersal of ownership 
undertaking, if applicable. 
 
 
A reportorial compliance certificate issued by Congress shall be required before any 
application for a permit or certificate is accepted by the ERC. 
 
SECTION 17. Fine. – The failure of the Grantee to submit the requisite annual report to 
Congress shall be penalized with a fine in the amount of Five hundred pesos (P500.00) per 
working day of non-compliance which shall be collected by the ERC. The fine shall be collected 
separately from the reportorial penalties imposed by the ERC and shall be remitted to the 
Bureau of the Treasury. 
 
SECTION 18. Equality Clause. – Any advantage, favor, privilege, exemption, or immunity 
granted under existing franchises, or which may hereafter be granted, upon prior review and 
approval of Congress, shall become part of this franchise and shall be accorded immediately 


 
and unconditionally to the herein Grantee: Provided, however, That the foregoing shall neither 
apply to nor affect provisions concerning territory covered by the franchise, the life span of the 
franchise or the type of service authorized by the franchise: Provided, further, That the 
foregoing shall not apply to the sale, lease, transfer, grant of usufruct, or assignment of 
legislative franchises with prior congressional approval. 
 
SECTION 19. Transition of Operations. – To ensure the uninterrupted supply of electricity, 
Camarines Sur Electric III Cooperative (CASURECO 3), in the interim, is authorized to operate 
the existing distribution system within its former franchise area and implement its existing 
power supply agreements with generation companies that are provisionally or finally approved 
by the ERC until the Grantee establishes or acquires its own distribution system and fully takes 
over the operations in the franchise area. CASURECO 3 may operate not longer than two (2) 
years from the approval of this legislative franchise. 
 
 
Upon compliance with the rules, the ERC shall grant the CASURECO 3 the necessary 
provisional CPCN covering the transition period. The ERC shall determine the applicable 
generation rate. 
 
 
The provisional authority to operate during the transition period granted to the 
CASURECO 3 shall not prevent the Grantee from exercising the right of eminent domain as 
provided under Section 9 of this Act. During the transition period, the ERC shall decide and 
execute its decision on all cases filed against the CASURECO 3, especially on those 
pertaining to claims by consumers for refunds.  
 
 
To reduce the length of the transition period, the ERC and all agencies issuing the 
requisite licenses shall act upon all applications of the Grantee relevant to the establishment 
and operation of the distribution system under its franchise. 
 
 
In the hiring of employees, the Grantee shall, as far as practicable and subject to 
certain qualification standards, give preference to former employees of the CASURECO 3 
when it commences business operations in its new franchise area. 
 
 
An information dissemination campaign regarding public services and operations of 
the Grantee shall be made to all end users in the franchise area. 
 
 
The Grantee and the CASURECO 3 shall jointly ensure that affected employees not 
hired by the Grantee shall receive all separation or retirement benefits in accordance with 
applicable laws. 
 
 
During the transition, the DOE shall ensure that the supply of electricity in the existing 
franchise area is uninterrupted. 
 
SECTION 20. Repealability and Non-Exclusivity Clause. – This franchise shall be subject 
to amendment, alteration, or repeal by Congress when public interest so requires and shall 
not be interpreted as an exclusive grant of the privileges herein provided. 
 
SECTION 21. Applicability of Existing Laws. – The Grantee shall comply with and be 
subject to the provisions of Commonwealth Act No. 146, or the “Public Service Act” as 
amended; RA No. 9136, as amended; RA No. 9513, or the “Renewable Energy Act of 2008”; 
RA No. 11361, or the “Anti-Obstruction of Power Lines Act”; RA No. 10531, otherwise known 
as the “National Electrification Administration Reform Act of 2013”; and other applicable laws. 
 
SECTION 22. Separability Clause. – If any of the sections or provisions of this Act is held 
invalid, all other provisions not affected thereby shall remain valid. 
 


 
SECTION 23. Repealing Clause. –  All laws, presidential decrees, executive orders, letters 
of instruction, administrative rules and regulations or parts thereof which are contrary to or 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.  
 
SECTION 24. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,