Republic of the Philippines
asouse ot 3Representattt]es
Quezon City
NINETEENTH CONGRESS
Second ReguhaT Session
House Bill No.
Introduced by
Aklan lst District Represerita:flue Carttto S. Marqprez
COOP NA:ICCO Represeritafiue Felimon M. Espares
PhiRECA Pcutg-list Represeutatiue Presley C. De Jesus
APEC Pcutg-Iist Represendatwe Sergio C. Dagooc
The  AKLAN  ELECTRIC  COOPERATIVE,  INC.,  was  registered  with  the
National   Electrification   Administration   (NEA)   on   April   25,    1972   through
Registration  Certificate  No.  23.  On June  5,  1978,  the  National  Electrification
Administration  (NEA)  issued  to Aklan  Electric  Cooperative,  Inc.  (AKELCO)  its
franchise for 50 years. This covers the municipalities of Altavas, Libacao, Nabas,
Buruanga,  Banga,  Ibajay,  Makato,  New  Washington,  Balete,  Kalibo,  Malay
(including Boracay Island) , Numancia, Madalag, Batan, I,ezo, Malinao, Tangalan
all within the Province of Aklan, Barangay Damayan found in the Municipality
of Sapian, Capiz and the two municipalities of the province of Antique-Pandan
and Libertad. Pandan and Libertad, despite being municipalities of Antique were
included   to   AKELCO's   franchise   coverage   by   the   National   Electrification
Administration (NEA).
Through the years, AKELCO has evolved to become a "mega-large" electric
cooperative  and  has  been  consistently  categorized  as  a  "Triple-A"  electric
cooperative  for  its  exceptional  performance.   Due  to  their  performance  and
operations, as of August 2023, AKELCO has been able to distribute electricity to
its   Member-Consumer-Owners   (MC0s)   with  a  rate   not  exceeding   11.6540
Php/kwh.


Presently,  AKELC0  has  energized  one  hundred  (100°/o)  percent  of  its
franchise area and has consistently maintained their systems loss below 9°/o.
Furthermore, AKELCO has been able to effectively mininiize the power outages
and consistently ensure its collection efficiency within their jurisdiction.
The enactment of this bill will ensure the continuous delivery of electric
services to its MCOs, consistent with the mandate of the Electric Power Industry
Reform Act of 2001 (EPIRA) to ensure and promote the total electrification of the
Philippines; and to ensure quality, reliable, sustainable, secure and affordable
supply of electricity to promote economic development in the Country.
In view of the foregoing, approval of this bill is earnestly sought.
Ot`f  Zr`
REP. CARLITO S. MARQUEZ
1 st Iisinct Represeritafiue
PtoiJince Of ALklcm
REP.SERG1%. DAcOOC
APBC Party-list Represendcutve
PRESLEY C. DE .ESUS
RECA Party -list Repre s endcrf ule


Republic of the Philippines
asouge ot 3Represetttattbes
Quezon City
NINETEENTH CONGRESS
Secorid Regular Session
'.House BillNo.     9577
Introduced by
Aklan lst lis±rict Represeritafiue Cariito S. Marquez,
COOP NA:Ioco Represeritafiue Fel;iron M. Espares,
PhilRECA Pcutg-LisS Represeritafiue Ptesleg C. De Jesus,
APEC Party-list Represeritedve Sergio C. Dagooc
AV ACT
GRANTING THE AKLART ELECTRIC COOPERA'ITVE A FRANCHISE TO
coNSTRucT, OPERATE AND MAmTAIH A DlsTRIBUTloN STSTEM FOR
THE CollvEYANCE OF ELECTRIC POWER TO THE END-USERS OF THE
SEVENTEEN ( 17) MUNICIPALITIES OF THE PROVINCE 0F AELAV, TWO (2)
MUNlclpALITIEs OF pANDA« AND LIBERTAD ALL IN THE rmovIHCE OF
AlrTIQUE A)rD IN BARANGA¥ DARATAH, IH THE MUHlclpALITv oF
SA-' CAPIZ.
Be i± enacted bg the Serrate cnd. the House Of Represeritafiues Of the Republie Of
the Philippines in Congress assembled:
SECTION 1. Nature and Scope o/I+tlnchise. -Subject to the provisions
of the Constitution and applicable laws, rules and regulations, there is hereby
granted to the Aklan Electric Cooperative, Inc.  (AKELCO), hereunder referred to
as  the  grantee,  its  successors  or  assigns  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 of the  Municipalities of Altavas,  Libacao,  Nabas,  Buruanga,
Banga,   Ibajay,   Makato,   New  Washington,   Balete,   Kalibo,   Malay   (including
Boracay Island), Numancia, Madalag, Batan, Lezo, Malinao, Tangalan all within
the Province of Aklan, Barangay Damayan found in the Municipality of Sapian,


Capiz and the two municipalities of the province of Antique, namely Pandan and
Libertad.
As used in this Act, distribution system refers to the system of wires and
associated facilities including sub-transmission 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.   Ifanner   o/  qperatioris   o/  Fac€Z€t{cs.   -  All   electric
distribution facilities,  lines and systems for electric services installed,  owned,
maintain,  operated, managed or maintained by the grantee, its successors or
assigns shall be operated or maintained at all times in a superior manner, and
it shall be the duty of the grantee, its successors or assigns, whenever required
to do so by the Energy Regulatory Commission, hereinafter referred to as the
ERC, or its legal successor, or the Department of Energy, hereinafter referred to
as the 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.
SECTION 3. Authority Of t:he Energg Regurdtory Comm:isston (ERC). -
The  grantee  shall  secure  from  the  ERC  or  any  government  agency  having
jurisdiction  over  their  operations,  the  certificate  of  public  convenience  and
necessity  and  any  other  license,  permit,  or  authority  indispensable  for  the
construction and operation of the electric power distribution system.
SECTION  4.  Ingress  and!  Egress.  -  F`or  the  purpose  of erecting  and
maintaining  the  poles  or  other  supports  for  said  facilities,  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   concerned,   as   may   be


appropriate,  to make excavations or lay conduits in any of the public places,
highways,  roads,  streets,  lines,  alleys,  avenues,  sidewalks,  or  bridges  of the
province and city:  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
at the expense of the grantee, its successors or assignees, in accordance with
the standards set by the DPWH or the local government unit concerned. Should
the grantee, its successors or assignees, after the ten (10)-day notice from the
grant of authority, fall, 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, then the
DPWH or the local government unit concerned shall have the right to have the
same repaired and replaced in good order and condition at double expense to be
charged against the grantee, its successors or assignees.
SECTION  5.  Respoiistb€[ity to the mblic.  - 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 efflcient 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  areas  in  order  that
business and industries shall be able to compete.
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 No. 9136, otherwise
haown 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 /or Sertrfccs.  - The retail rates and charges for the
distribution of electric power by the grantee to its end-users shall be regulated
by and subject to the approval of the ERG or its legal successor.
The grantee shall identify and segregate in its electricity bill to tbe end-
users  the  components  of the  retail  rate  pursuant  to  Republic Act  No.  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
to marginalized end-users as mandated under Republic Act No. 9136.
SECTION 7. Promotion o/ Consttmer Jnferests -The herein 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.
SECTION 8. Right o/the Gotieminent -A special right is hereby reserved
to  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. RigJit a/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:  I+oz#.czecz,  That
proper   expropriation   proceedings   shall   have   been   instituted   and   just
compensation paid.
SECTION    10.  rer..]'i   o/  Franchise. -Unless   sooner   cancelled,   the
franchise shall be in effect for a period of twenty-five (25) years from the year of
expiration of its existing franchise.  This  franchise  shall be deemed ipso facto
revoked in the event the grantee falls to operate continuously for two (2) years.
SECTION   11.   Acceptance   arid   Corxp!iance.   -   Acceptance   of  this
franchise shall be given in writing to the Congress of the Philippines, through
the Committee on Legislative Franchises of the House of Representatives and the
Committee  on  Public  Services  of the  Senate  within  sixty  (60)  days  from  the
effectivity  of this  Act.  Upon  such  acceptance,  the  grantee  shall  exercise  the
privileges granted under this Act. Nonacceptance shall render the franchise void.


SEC"ON   L2.   Warrou.i;ty   in   Fa:vor   Of  the   National   aird   Local
Gouemments  -  The  grantee  shall  hold  the  national,  provincial,  city,  and
municipal  governments  of  the  Philippines  free  from  all  claims,   accounts,
demands, or actions arising out of accidents or injuries, whether to property or
to persons, caused by the construction, installation, operation, and maintenance
of the distribution system of the grantee.
SECTION 13. L{ab€[€€g//or Dariqges -The grantee shall be liable for any
injury and damage arising from or caused by accident to persons and property
by reason of any defective construction under this franchise or of any neglect or
omission to keep its poles and wires in safe condition.
SEC")"   14. Sale,  Lease,   Trca'isifer,  Us:.rfruct,  or  Assigrrmerit  Of
Franchise. - The grantee shall not sell, lease, transfer, grant the usufruct of, or
assign this franchise  or the rights  and privileges  acquired thereunder to  any
person, firm, company, corporation, or other commercial or legal entity, or merge
with any other corporation, or entity, or shall transfer the controlling interest of
the grantee,  whether as  a whole or in parts,  and whether simultaneously or
contemporaneously, to any such person, firm, company, corporation, or entity
without  the  prior  approval  of the  Congress  of the  Philippines: ProL#.decz, That
Congress shall be informed of any lease, transfer, granting the usufruct of, sale,
or assignment of franchise or the rights and privileges acquired thereunder, or
of the merger, or sale of the controlling interest within sixty (60) days after the
completion of said transaction: ProL;1.czeczjitrfher, That any such transfer, sale, or
assignment   is   in   accordance   with   the   constitutional   limitations: ProLH.c!ec!
rfur€hermore, That fallure to report to Congress such change of ownership shall
render  the  franchise lpso /czcfo revoked: ProL„.czecz jirLcz!Zg, That  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.  Reporforial Requirement.  -The grantee shall submit an
annual report to  the  Congress  of the  Philippines,  through  the  Committee  on
Legislative Franchises of the House of Representatives and the Committee on
fublic 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  reportorial  compliance  certificate  issued  by
Congress  shall  be  required  before  any  application  for  permit  or  certificate is
accepted by the ERG.


SECTION  16. Ffrie. -  The  failure  of the  grantee  to  submit  the  requisite
annual report to  Congress  shall be penalized by a fine in the  amount of five
hundred pesos  (P500.00) per working day of noncompliance. The fine shall be
collected by the ERG from the delinquent franchise grantee separate from the
reportorial penalties imposed by the ERC. AIl proceeds from the fines or penalties
shall be remitted to the National Treasury.
SECTION    17. Eqtia[€tg/    C[attse. -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: ProL;1.czecz, ho"euer, 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: Proulc!ecz,
jijrfher, That the foregoing shall not apply to the sale, lease, transfer, grant of
usufruct,   or  assignment   of  legislative  franchises  with  prior   congressional
approval.
SECTION  18. Appzfcab€Z€tg/ Czattse. -The grantee shall comply with and
be  subject  to  the  provisions  of  Commonwealth  Act  No.   146,  as  amended,
otherwise  known  as  the   "Public  Service  Act"   and  Republic  Act  No.   9136,
otherwise known as the "Electric Power Industry Reform Act of 2001".
SECTION    19. Repeatab€tity    and    Non-Exchasivity    Clause. -This
franchise shall be subject to amendment, alteration, or repeal by the Congress
of  the  Philippines  when  the  public  interest  so  requires  and  shall  not  be
interpreted as an exclusive grant of the privileges herein provided for.
SECTION 20. Separab€ZitE/ Chatise. - If any of the sections or provisions
of this Act is held invalid, all other provisions not affected thereby shall remain
valid.
SECTION   21.   Repeaz€ng   Czattse.   -     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 22. Erdsting Potuers.  - Existing mandates, powers, functions,
and privileges granted to Electric Cooperatives under existing laws,  including
Section  JO of Repubz{c Act IVo.  J053J,  shall  remain  valid  and  effective,  unless
expressly repealed by succeeding laws.
SECTION 23. EJTec€iulty Clause. -This Act shall take effect fifteen  (15)
days after its publication in at least two (2) newspapers of general circulation.
Approved