Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No.  ________________ 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List 
Sergio C. Dagooc, APEC Party-List 
EXPLANATORY NOTE 
Zamboanga del Sur I Electric Cooperative, Inc. (ZAMSURECO I) was 
organized and registered on August 25, 1972, pursuant to the provisions of 
Presidential Decree No. 269, as amended, and operates under the supervisory 
authority of the National Electrification Administration (NEA). 
Pursuant to Section 27 of Republic Act No. 9136, otherwise known as 
the Electric Power Industry Reform Act (EPIRA), the power to grant franchises 
for electric power distribution is vested exclusively in the Congress of the 
Philippines. Hence, this bill seeks to grant a congressional franchise to 
ZAMSURECO-I to operate an electric power distribution system and provide 
electricity to twenty-three (23) municipalities and one city in the Province of 
Zamboanga del Sur, as well as one municipality in Misamis Occidental. These 
areas include Tambulig, Molave, Mahayag, Dumingag, Josefina, Ramon 
Magsaysay, Sominot, Midsalip, Aurora, Tukuran, Labangan, Dumalinao, 
Guipos, San Pablo, Tigbao, Lapuyan, Margosatubig, San Miguel, Vincenzo 
Sagun, Dimataling, Dinas, Pitogo, Tabina, and Pagadian City in Zamboanga 
del Sur, and Don Victoriano in Misamis Occidental. 
Since its establishment in 1972, ZAMSURECO I has served as the 
primary electricity provider within its franchise area. It is classified as a Mega 
Large electric cooperative, serving a total of 624 barangays, all of which have 
been energized since 2010. In addition, it covers 3,430 sitios, with 2,946 of 
them already energized. 
August 4, 2025
4:55 pm
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The Cooperative has consistently maintained the highest category level 
of AAA as designated by the National Electrification Administration (NEA). 
This rating has been sustained for an impressive seventeen (17) consecutive 
years, a testament to ZAMSURECO I's exceptional performance and 
unwavering commitment to service excellence. 
The enactment of this bill will ensure the continued and reliable delivery 
of electricity to the abovementioned areas, in furtherance of the State’s policy 
under EPIRA to promote and accelerate total electrification nationwide and to 
guarantee the quality, reliability, security, and affordability of electric power 
supply. 
In view of the foregoing, the immediate approval of this bill is earnestly 
sought. 
REP. PRESLEY C. DE JESUS 
    REP. SERGIO C. DAGOOC 
PhilRECA Party-List 
    APEC Party-List 


Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No.  ________________ 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List 
Sergio C. Dagooc, APEC Party-List  
AN ACT 
GRANTING THE ZAMBOANGA DEL SUR I ELECTRIC COOPERATIVE, INC. 
(ZAMSURECO 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 TAMBULIG, MOLAVE, MAHAYAG, DUMINGAG, 
JOSEFINA, RAMON MAGSAYSAY, SOMINOT, MIDSALIP, AURORA, 
TUKURAN, LABANGAN, DUMALINAO, GUIPOS, SAN PABLO, TIGBAO, 
LAPUYAN, 
MARGOSATUBIG, 
SAN 
MIGUEL, 
VINCENZO 
SAGUN, 
DIMATALING, DINAS, PITOGO, TABINA, PAGADIAN CITY IN ZAMBOANGA 
DEL SUR AND DON VICTORIANO IN MISAMIS OCCIDENTAL 
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 Zamboanga del Sur I Electric Cooperative 
3 
(ZAMSURECO I) hereunder referred to as the Grantee, its successors or 
4 
assigns a franchise to construct, install, establish, operate, own, manage and 
5 
maintain in the public interest and commercial purposes, a distribution 
6 
system for the conveyance of electric power to the end-users in the following 
7 
areas: the municipalities of Tambulig, Molave, Mahayag, Dumingag, Josefina, 
8 
Ramon Magsaysay, Sominot, Midsalip, Aurora, Tukuran, Labangan, 
9 
Dumalinao, Guipos, San Pablo, Tigbao, Lapuyan, Margosatubig, San Miguel, 
10 
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Vincenzo Sagun, Dimataling, Dinas, Pitogo, and Tabina, and Pagadian City, 
1 
in the Province of Zamboanga del Sur; and the Municipality of Don Victoriano 
2 
in the Province of Misamis Occidental. 
3 
As used in this Act, distribution system refers to the system of wires 
4 
and associated facilities including sub-transmission lines belonging to a 
5 
franchised distribution utility extending between the delivery point on the 
6 
national transmission system or generating facility and the metering point or 
7 
facility of the end-users. 
8 
 
SEC. 2. Manner of Operation of Facilities. – All electric distribution 
9 
facilities, lines and systems for electric services installed, owned, maintained, 
10 
operated, managed by the Grantee, its successors or assigns shall be operated 
11 
or maintained at all times in a superior manner, and it shall be the duty of 
12 
the Grantee, its successors or assigns, whenever required to do so by the 
13 
Energy Regulatory Commission (ERC), or its legal successor, or the 
14 
Department of Energy (DOE), or its legal successor, or any other government 
15 
agency concerned to modify, improve and change such facilities or systems in 
16 
such manner and to such extent as the progress in science or technology and 
17 
improvements or innovations in the electric power services may render 
18 
reasonable and proper. 
19 
 
Whenever practicable, and for purposes of maintaining order, safety 
20 
and aesthetics along the highways, roads, streets, alleys or right-of-way, the 
21 
Grantee may allow the use of free spaces in its poles, facilities, or right-of-way 
22 
by interested parties upon reasonable compensation to the Grantee 
23 
considering the costs incurred to accommodate and administer the use of the 
24 
Grantee’s facilities by such parties.  The ERC shall decide in case of dispute 
25 
or disagreement between the parties. 
26 
 
SEC. 3. Authority of the ERC and NEA. – The Grantee shall secure 
27 
from the ERC or NEA any government agency having jurisdiction over their 
28 
operations, the Certificate of Public Convenience and Necessity and any other 
29 
license, permit or authority indispensable for the construction and operation 
30 
of the electric power distribution system.  
31 
 
SEC. 4. Excavation and Restoration Works. – For the purpose of 
32 
erecting and maintaining the poles or other supports for said facilities, wires 
33 
or other conductors or for the purpose of laying and maintaining said 
34 
facilities, wires, cables or other conductors, it shall be lawful for the Grantee, 
35 
its successors, or assignees, in coordination with the Department of Public 
36 
Works and Highways (DPWH) or the local government unit (LGU) concerned, 
37 
as may be appropriate, to make excavations or lay conduits in any of the 
38 
public places, highways, road, streets, lanes, alleys, avenues, sidewalks, or 
39 


 
 
bridges of the province, cities or municipalities: Provided, however, That a 
1 
public place, highway, road, street, lane, alley, avenue, sidewalk, or bridge 
2 
disturbed, altered, or changed by reason of erection of poles or other supports 
3 
or the underground laying of wires, other conductors or conduits, shall be 
4 
repaired and replaced in workmanlike manner by the Grantee, its successors 
5 
or assignees, in accordance with the standards set by the DPWH or the local 
6 
government unit concerned.  Should the Grantee, its successors or assignees, 
7 
after the ten (10)-day notice from the grant of authority, fail, refuse or neglect 
8 
to repair or replace any part of public place, highway, road, street, lane, alley, 
9 
avenue, sidewalk, or bridge altered, changed or disturbed by the said Grantee, 
10 
its successors or assignees, then the DPWH or the local government unit 
11 
concerned shall have the right to have the same repaired and replaced in good 
12 
order and condition and charge the Grantee, its successors or assignees, 
13 
double the amount of the cost and expenses for such repair or replacement. 
14 
 
SEC. 5. Responsibility to the Public. – The Grantee shall supply 
15 
electricity to its captive market in the least costly manner.  In the interest of 
16 
the public good and as far as feasible and whenever required by the ERC, the 
17 
Grantee shall modify, improve, or change its facilities, poles, lines, systems 
18 
and equipment for the purpose of providing efficient and reliable service and 
19 
reduced electricity costs.  The Grantee shall charge reasonable and just power 
20 
rates for its services to all types of consumers within its franchised area in 
21 
order that business and industries shall be able to compete. 
22 
 
The Grantee shall have the obligation to provide open and 
23 
nondiscriminatory access to its distribution system and services for any end-
24 
user within its franchise area consistent with Republic Act (RA) No. 9136, 
25 
otherwise known as the “Electric Power Industry Reform Act of 2001”.  The 
26 
Grantee shall not engage in any activity that will constitute an abuse of 
27 
market power such as unfair trade practices, monopolistic schemes, and 
28 
other activities that will hinder competitiveness of business and industries. 
29 
 
SEC. 6. Rates for Services. – The retail rates and charges for the 
30 
distribution of electric power by the Grantee to its end-users shall be 
31 
regulated by and subject to the approval of the ERC or its legal successor. 
32 
 
The Grantee shall identify and segregate in its electricity bill to the end-
33 
users the components of the retail rate pursuant to RA 9136, unless otherwise 
34 
amended.  Such rates charged by the Grantee to the end-users shall be made 
35 
public and transparent. The Grantee shall implement lifeline rate to 
36 
marginalized end-users as mandated under RA 9136. 
37 
 
SEC. 7.  Promotion of Consumer Interests. – The Grantee herein shall 
38 
establish a consumer desk that will handle consumer complaints and ensure 
39 


 
 
adequate promotion of consumer interests. The Grantee shall act with 
1 
dispatch on all complaints brought before it. 
2 
 
SEC. 8. Commitment to Provide and Promote the Creation of 
3 
Employment Opportunities. – The Grantee shall create employment 
4 
opportunities and shall allow on-the-job training in its franchise operation: 
5 
Provided, That priority shall be accorded to the residents where their principal 
6 
office is located: Provided, further, That the Grantee shall comply with the 
7 
applicable labor standards and allowance entitlement under existing labor 
8 
laws, rules and regulations, and similar issuances. 
9 
 
SEC. 9.  Right of the Government. – A special right is hereby reserved 
10 
to the President of the Philippines, in times of war, rebellion, public peril, 
11 
calamity, emergency, disaster or disturbance of peace and order: to 
12 
temporarily take over and operate the stations or facilities of the Grantee; to 
13 
temporarily suspend the operation of any station or facility in the interest of 
14 
public safety, security, and public welfare; or to authorize the temporary use 
15 
and operation thereof by any agency of the government, upon due 
16 
compensation to the Grantee, for the use of the stations or facilities during 
17 
the period when these shall be so operated. 
18 
 
SEC. 10.  Right of Eminent Domain. – Subject to the limitations and 
19 
procedures prescribed by law, the Grantee is authorized to exercise the right 
20 
of eminent domain insofar as it may be reasonably necessary for the efficient 
21 
maintenance and operation of services.  The Grantee is authorized to install 
22 
and maintain its poles, wires, and other facilities over and across public 
23 
property, including streets, highways, forest reserves, and other similar 
24 
property of the Government of the Philippines, its branches, or any of its 
25 
instrumentalities.  The Grantee may acquire such private property as is 
26 
actually necessary for the realization of the purposes for which this franchise 
27 
is granted: Provided, That proper expropriation proceedings shall have been 
28 
instituted and just compensation paid. 
29 
 
SEC. 11. Term of Franchise. – Unless sooner cancelled, the franchise 
30 
shall be in effect for a period of twenty-five (25) years from the date of 
31 
effectivity of this Act.  This franchise shall be deemed ipso facto revoked in the 
32 
event the Grantee fails to operate continuously for two (2) years. 
33 
 
SEC. 12. Warranty in Favor of the National and Local 
34 
Governments. – The Grantee shall hold the national, provincial, city, and 
35 
municipal governments of the Philippines free from all claims, accounts, 
36 
demands, or actions arising from accidents causing injury to persons or 
37 
damage to properties, during the construction, installation, operation, and 
38 
maintenance of the distribution system of the Grantee. 
39 


 
 
 
SEC. 13. Liability for Damages. – The Grantee shall be liable for any 
1 
injury to persons and damage to properties arising from accidents by reason 
2 
of any defective construction under this franchise or of any neglect or 
3 
omission to keep its poles and wires in safe condition. 
4 
 
SEC. 14. Sale, Lease, Transfer, Usufruct, or Assignment of 
5 
Franchise. – The Grantee shall not sell, lease, transfer, grant the usufruct, 
6 
or assign this franchise or the rights and privileges acquired thereunder to 
7 
any person, firm, company, corporation, or other commercial or legal entity, 
8 
or merge with any other corporation, or entity, or shall transfer the controlling 
9 
interest of the Grantee, whether as a whole or in parts, and whether 
10 
simultaneously or contemporaneously, to any such person, firm, company, 
11 
corporation, or entity without the prior approval of the Congress: Provided, 
12 
That Congress shall be informed of any sale, lease, transfer, grant of usufruct, 
13 
sale, or assignment of franchise or the rights and privileges acquired 
14 
thereunder, or of the merger, or sale of the controlling interest within sixty 
15 
(60) days after the completion of said transaction: Provided, further, That any 
16 
such transfer, sale, or assignment is in accordance with the constitutional 
17 
limitations: Provided, furthermore, That failure to report to Congress such 
18 
change of ownership shall render the franchise ipso facto revoked: Provided, 
19 
finally, That any person or entity to which this franchise is sold, transferred, 
20 
or assigned, shall be subject to the same conditions, terms, restrictions, and 
21 
limitations of this Act. 
22 
 
SEC. 15. Reportorial Requirement. – The Grantee shall submit an 
23 
annual report to Congress, through the Committee on Legislative Franchises 
24 
of the House of Representatives and the Committee on Public Services of the 
25 
Senate, on its compliance with the terms and conditions of the franchise and 
26 
on its operations on or before April 30 of every year during the term of the 
27 
franchise.  The reportorial compliance certificate issued by Congress shall be 
28 
required before any application for permit or certificate is accepted by the 
29 
ERC. 
30 
 
SEC. 16. Fine. – The failure of the Grantee to submit the requisite 
31 
annual report to Congress shall be penalized by a fine in the amount of Five 
32 
hundred pesos (P500.00) per working day of noncompliance which shall be 
33 
collected by the ERC. The fine shall be collected separately from the 
34 
reportorial penalties imposed by the ERC and shall be remitted to the Bureau 
35 
of Treasury.  
36 
 
SEC. 17. Equality Clause. – Any advantage, favor, privilege, 
37 
exemption, or immunity granted under existing franchises, or which may 
38 
hereafter be granted, upon prior review and approval of Congress, shall 
39 
become part of this franchise and shall be accorded immediately and 
40 


 
 
unconditionally to the herein Grantee: Provided, however, That the foregoing 
1 
shall neither apply to nor affect provisions concerning territory covered by the 
2 
franchise, the life span of the franchise or the type of service authorized by 
3 
the franchise: Provided, further, That the foregoing shall not apply to the sale, 
4 
lease, transfer, grant of usufruct, or assignment of legislative franchises with 
5 
prior congressional approval. 
6 
 
 SEC. 18. Applicability of Existing Laws. – The Grantee shall comply 
7 
with and be subject to the provisions of Commonwealth Act No. 146 or the 
8 
“Public Service Act”, as amended, RA 9136, and RA 10531 or the “National 
9 
Electrification Administration Reform Act of 2013.” 
10 
 
SEC. 19. Existing Powers. – Existing mandates, powers, functions, 
11 
and privileges granted to electric cooperatives under existing laws, including 
12 
Section 10 of RA 10531 shall remain valid and effective, unless expressly 
13 
repealed by succeeding laws. 
14 
 
SEC. 20. Repealability and Non-Exclusivity Clause. – This franchise 
15 
shall be subject to amendment, alteration, or repeal by Congress when the 
16 
public interest so requires and shall not be interpreted as an exclusive grant 
17 
of the privileges herein provided for. 
18 
SEC. 21. Separability Clause. – If any of the sections or provisions of 
19 
this Act is held invalid, all other provisions not affected thereby shall remain 
20 
valid. 
21 
 
SEC. 22. Repealing Clause. – All laws, presidential decrees, executive 
22 
orders, letters of instruction, administrative rules and regulations or parts 
23 
thereof which is are contrary to or inconsistent with the provisions of this Act 
24 
are hereby repealed or modified accordingly. 
25 
 
SEC. 23. Effectivity Clause. – This Act shall take effect fifteen (15) 
26 
days after its publication in the Official Gazette or in a newspaper of general 
27 
circulation. 
28 
Approved, 
29