Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
        House Bill No.  3081 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List Representative 
Sergio C. Dagooc, APEC Party-List Representative 
EXPLANATORY NOTE 
This bill seeks to grant a congressional franchise to Zambales I Electric 
Cooperative, Inc. (ZAMECO I) to provide an electric power distribution system 
to the people in the municipalities of Botolan, Iba, Palauig, Masinloc, 
Candelaria, and, Sta. Cruz, Province of Zambales.  Furthermore, it establishes 
standards that the franchise grantee must attain in order to implement an 
effective partnership between the government and the distribution utility as 
its partner for total electrification. 
ZAMECO I is an electric cooperative organized and existing by virtue of 
Presidential Decree No. 269 (PD 269) and was registered with the National 
Electrification Administration (NEA) on June 30, 1972. ZAMECO I was 
granted its Certificate of Franchise by NEA on November 27, 1978, 
authorizing it to operate an electric light and power service for a period of fifty 
(50) years until November 27, 2028.
ZAMECO I has been providing excellent to the municipalities covered 
under its franchise, achieving 100% barangay and sitio energization as of 
December 2023. This translates to 118 barangays with 179 sitios energized 
and 83,787 consumer connections. ZAMECO I possesses the technical, 
financial and institutional capabilities to perform the electrification program 
in the municipalities covered by their franchise area. As of December 2023, it 
maintains a single digit system of 8.33%. 
August 5, 2025
1:04 pm


Granting this franchise will ensure the continuous supply of electricity 
to the people of Botolan, Iba, Palauig, Masinloc, Candelaria, and, Sta. Cruz in 
the province of Zambales. It will enable ZAMECO I to continue with its mission 
of taking a major role in the socio-economic development of Zambales by 
providing an affordable, dependable, efficient and reliable electric service to 
its member-consumer-owners. 
In view of the foregoing, the approval of this bill is earnestly sought. 
REP. PRESLEY C. DE JESUS 
Representative, PhilRECA Party-List 
REP. SERGIO C. DAGOOC 
Representative, APEC Party-List 


Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
        House Bill No.  3081 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List Representative 
Sergio C. Dagooc, APEC Party-List Representative 
AN ACT 
GRANTING THE ZAMBALES 1 ELECTRIC COOPERATIVE, INC. (ZAMECO 
I) A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE,
OWN, MANAGE AND MAINTAIN DISTRIBUTION SYSTEMS FOR THE
CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN THE
MUNICIPALITIES 
OF 
BOTOLAN, 
IBA, 
PALAUIG, 
MASINLOC,
CANDELARIA, AND STA. CRUZ IN THE PROVINCE OF ZAMBALES
Be it enacted by the Senate and the House of Representatives of the Republic 
of the Philippines in Congress assembled: 
SECTION 1. Nature and Scope of Franchise. – Subject to the
1 
provisions of the Constitution and applicable laws, rules and regulations, 
2 
there is hereby granted to the Zambales I Electric Cooperative, Inc. (ZAMECO 
3 
I), hereunder referred to as the grantee, its successors or assigns a franchise 
4 
to construct, install, establish, operate, own, manage and maintain in the 
5 
public interest and commercial purposes, a distribution system for the 
6 
conveyance of electric power to the end-users in the municipalities of of 
7 
Botolan, Iba, Palauig, Masinloc, Candelaria, and, Sta. Cruz, Province of 
8 
Zambales. 
9 
As used in this Act, distribution system refers to the system of wires 
10 
and associated facilities including sub-transmission lines belonging to a 
11 
franchised distribution utility extending between the delivery point on the 
12 


 
 
national transmission system or generating facility and the metering 
1 
point/facility of the end-users. 
2 
 
SEC. 2. Manner of Operation of Facilities. – All electric distribution 
3 
facilities, lines and systems for electric services installed, owned, maintained, 
4 
operated, managed by the grantee its successors or assigns shall be operated 
5 
or maintained at all times in a superior manner, and it shall be the duty of 
6 
the grantee, its successors or assigns, whenever required to do so by the 
7 
Energy Regulatory Commission, hereinafter referred to as the ERC, or its legal 
8 
successor, or the Department of Energy, hereinafter referred to as the DOE, 
9 
or its legal successor, or any other government agency concerned, to modify, 
10 
improve and change such facilities or systems in such manner and to such 
11 
extent as the progress in science or technology and improvements or 
12 
innovations in the electric power services may render reasonable and proper. 
13 
 
Whenever practicable, and for purposes of maintaining order, safety 
14 
and aesthetic along the highways, roads, streets, alleys or right-of-way, the 
15 
grantee may allow the use of free spaces in its poles, facilities, or right-of-way 
16 
by interested parties upon reasonable compensation to the grantee 
17 
considering the costs incurred to accommodate and administer the use of the 
18 
grantee’s facilities by such parties.  The ERC shall decide in case of dispute 
19 
or disagreement between the parties. 
20 
 
SEC. 3. Authority of the Energy Regulatory Commission (ERC). – 
21 
The grantee shall secure from the ERC or any government agency having 
22 
jurisdiction over their operations, the certificate of public convenience and 
23 
necessity and any other license, permit or authority indispensable for the 
24 
construction and operation of the electric power distribution system.   
25 
 
SEC. 4. Ingress and Egress. – For the purpose of erecting and 
26 
maintaining the poles or other supports for said facilities, wire or other 
27 
conductors or for the purpose of laying and maintaining said facilities, wires, 
28 
cables or other conductors, it shall be lawful for the grantee, its successors, 
29 
or assignees, in coordination with the Department of Public Works and 
30 
Highways (DPWH) or the local government unit concerned, as may be 
31 
appropriate, to make excavations or lay conduits in any of the public places, 
32 
highways, road, streets, lines, alleys, avenues, sidewalks, or bridges of the 
33 
province and city: Provided, however, that a public place, highway, road, 
34 
street, lane, alley, avenue, sidewalk, or bridge disturbed, altered, or changed 
35 
by reason of erection of poles or other supports or the underground laying of 
36 
wires, other conductors or conduits, shall be repaired and replaced in 
37 
workmanlike manner at the expense of the grantee, its successors or 
38 
assignees, in accordance with the standards set by the DPWH or the local 
39 
government unit concerned.  Should the grantee, its successors or assignees, 
40 
after the ten (10)-day notice from the grant of authority, fail, refuse or neglect 
41 


 
 
to repair or replace any part of public place, highway, road, street, lane, alley, 
1 
avenue, sidewalk, or bridge altered, changed or disturbed by the said grantee, 
2 
its successors or assignees, then the DPWH or the local government unit 
3 
concerned shall have the right to have the same repaired and replaces in good 
4 
order and condition at double expense to be charged against the grantee, its 
5 
successors or assignees. 
6 
 
SEC. 5. Responsibility to the Public. – The grantee shall supply 
7 
electricity to its captive market in the least costly manner.  In the interest of 
8 
the public good and as far as feasible and whenever required by the ERC, the 
9 
grantee shall modify, improve, or change its facilities, poles, lines, systems 
10 
and equipment for the purpose of providing efficient and reliable service and 
11 
reduced electricity costs.  The grantee shall charge reasonable and just power 
12 
rates for its services to all types of consumers within its franchised area in 
13 
order that business and industries shall be able to compete. 
14 
 
The grantee shall have the obligation to provide open and 
15 
nondiscriminatory access to its distribution system and services for any end-
16 
user within its franchise area consistent with Republic Act No. 9136, 
17 
otherwise known as the “Electric Power Industry Reform Act of 2001”.  The 
18 
grantee shall not engage in any activity that will constitute an abuse of market 
19 
power such as unfair trade practices, monopolistic schemes, and other 
20 
activities that will hinder competitiveness of business and industries. 
21 
 
SEC. 6. Rates for Services. – The retail rates and charges for the 
22 
distribution of electric power by the grantee to its end-users shall be regulated 
23 
by and subject to the approval of the ERC or its legal successor. 
24 
 
The grantee shall identify and segregate in its electricity bill to the end-
25 
users the components of the retail rate pursuant to Republic Act No. 9136, 
26 
unless otherwise amended.  Such rates charged by the grantee to the end-
27 
users shall be made public and transparent.  The grantee shall implement 
28 
lifeline rate to marginalized end-users as mandated under Republic Act No. 
29 
9136. 
30 
 
SEC. 7.  Promotion of Consumer Interests. – The herein grantee shall 
31 
establish a consumer desk that will handle consumer complaints and ensure 
32 
adequate promotion of consumer interests.  The grantee shall act with 
33 
dispatch on all complaints brought before it. 
34 
SEC. 8. Commitment to Provide and Promote the Creation of 
35 
Employment Opportunities. – The Grantee shall create employment 
36 
opportunities and shall allow on-the-job training in its franchise operation: 
37 
Provided, That priority shall be accorded to the residents where their principal 
38 
office is located: Provided, further, That the Grantee shall comply with the 
39 
applicable labor standards and allowance entitlement under existing labor 
40 


 
 
laws, rules and regulations, and similar issuances. 
1 
 
SEC. 9.  Right of the Government. – A special right is hereby reserved 
2 
to the President of the Philippines, in times of war, rebellion, public peril, 
3 
calamity, emergency, disaster or disturbance of peace and order: to 
4 
temporarily take over and operate the stations or facilities of the grantee; to 
5 
temporarily suspend the operation of any station or facility in the interest of 
6 
public safety, security and public welfare; or to authorize the temporary use 
7 
and operation thereof by any agency of the government, upon due 
8 
compensation to the grantee, for the use of the stations or facilities during the 
9 
period when these shall be so operated. 
10 
 
SEC. 10.  Right of Eminent Domain. – Subject to the limitations and 
11 
procedures prescribed by law, the grantee is authorized to exercise the right 
12 
of eminent domain insofar as it may be reasonably necessary for the efficient 
13 
maintenance and operation of services.  The grantee is authorized to install 
14 
and maintain its poles, wires, and other facilities over and across public 
15 
property, including streets, highways, forest reserves, and other similar 
16 
property of the Government of the Philippines, its branches, or any of its 
17 
instrumentalities.  The grantee may acquire such private property as is 
18 
actually necessary for the realization of the purposes for which this franchise 
19 
is granted: Provided, that proper expropriation proceedings shall have been 
20 
instituted and just compensation paid. 
21 
 
SEC. 11 Term of Franchise. – This franchise shall be in effect for a 
22 
period of twenty-five (25) years from the date of effectivity of this Act, unless 
23 
sooner cancelled or revoked. This franchise shall be deemed ipso facto revoked 
24 
in the event the grantee fails to operate continuously for two (2) years. 
25 
 
SEC. 12. Warranty in Favor of the National and Local 
26 
Governments. – The grantee shall hold the national, provincial, city, and 
27 
municipal governments of the Philippines free from all claims, accounts, 
28 
demands, or actions arising out of accidents or injuries, whether to property 
29 
or to persons, caused by the construction, installation, operation, and 
30 
maintenance of the distribution system of the grantee. 
31 
 
SEC. 13. Liability for Damages. – The grantee shall be liable for any 
32 
injury and damage arising from or caused by accident to persons and property 
33 
by reason of any defective construction under this franchise or of any neglect 
34 
or omission to keep its poles and wires in safe condition. 
35 
 
SEC. 14. Sale, Lease, Transfer, Usufruct, or Assignment of 
36 
Franchise. – The grantee shall not sell, lease, transfer, grant the usufruct of, 
37 
or assign this franchise or the rights and privileges acquired thereunder to 
38 
any person, firm, company, corporation, or other commercial or legal entity, 
39 
nor merge with any other corporation, or entity, nor shall transfer the 
40 


 
 
controlling interest of the grantee, whether as a whole or in parts, and whether 
1 
simultaneously or contemporaneously, to any such person, firm, company, 
2 
corporation, or entity without the prior approval of the Congress of the 
3 
Philippines: Provided, That Congress shall be informed of any sale, lease, 
4 
transfer, granting the usufruct of, or assignment of franchise or the rights 
5 
and privileges acquired thereunder, or of the merger, or sale of the controlling 
6 
interest within sixty (60) days after the completion of said transaction: 
7 
Provided further, That any such transfer, sale, or assignment is in accordance 
8 
with the constitutional limitations: Provided furthermore, That failure to report 
9 
to Congress such change of ownership shall render the franchise ipso facto 
10 
revoked: Provided finally, That any person or entity to which this franchise is 
11 
sold, transferred, or assigned, shall be subject to the same, conditions, terms, 
12 
restrictions, and limitations of this Act. 
13 
 
SEC. 15. Reportorial Requirement. – The grantee shall submit an 
14 
annual report to the Congress of the Philippines, through the Committee on 
15 
Legislative Franchises of the House of Representatives and the Committee on 
16 
Public Services of the Senate, on its compliance with the terms and conditions 
17 
of the franchise and on its operations on or before April 30 of every year during 
18 
the term of the franchise. The reportorial compliance certificate issued by 
19 
Congress shall be required before any application for permit or certificate is 
20 
accepted by the ERC. 
21 
 
SEC. 16. Fine. – The failure of the grantee to submit the requisite 
22 
annual report to Congress shall be penalized by a fine in the amount of five 
23 
hundred pesos (P500.00) per working day of noncompliance which shall be 
24 
collected by the ERC.  The fine shall be collected separately from the 
25 
reportorial penalties imposed by the ERC and shall be remitted to the Bureau 
26 
of Treasury.  
27 
 
SEC. 17. Equality Clause. – Any advantage, favor, privilege, 
28 
exemption, or immunity, granted under existing franchises, or which may 
29 
hereafter be granted, upon prior review and approval of Congress, shall 
30 
become part of this franchise and shall be accorded immediately and 
31 
unconditionally to the herein grantee: Provided, however, That the foregoing 
32 
shall neither apply to nor affect provisions concerning territory covered by the 
33 
franchise: Provided, further, That the foregoing shall not apply to the sale, 
34 
lease, transfer, grant of usufruct, or assignment of legislative franchises with 
35 
prior congressional approval. 
36 
 
37 
 
 SEC. 18. Applicability Clause. – The grantee shall comply with and 
38 
be subject to the provisions of Commonwealth Act No. 146, as amended, 
39 
otherwise known as the “Public Service Act” and Republic Act No. 9136, 
40 


 
 
otherwise known as the “Electric Power Industry Reform Act of 2001”. 
1 
 
SEC. 19. Existing Powers. – Existing mandates, powers, functions, 
2 
and privileges granted to electric cooperatives under existing laws, including 
3 
Section 10 of RA 10531 shall remain valid and effective, unless expressly 
4 
repealed by succeeding laws. 
5 
 
SEC. 20. Repealability and Non-Exclusivity Clause. – This franchise 
6 
shall be subject to amendment, alteration, or repeal by Congress when the 
7 
public interest so requires and shall not be interpreted as an exclusive grant 
8 
of the privileges herein provided for. 
9 
SEC. 21. Separability Clause. – If any of the sections or provisions of 
10 
this Act is held invalid, all other provisions not affected thereby shall remain 
11 
valid. 
12 
 
SEC. 22. Repealing Clause. – All laws, presidential decrees, executive 
13 
orders, letters of instruction, administrative rules and regulations or parts 
14 
thereof which is are contrary to or inconsistent with the provisions of this Act 
15 
are hereby repealed or modified accordingly. 
16 
 
SEC. 23. Effectivity Clause. – This Act shall take effect fifteen (15) 
17 
days after its publication in the Official Gazette or in a newspaper of general 
18 
circulation. 
19 
Approved, 
20