Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL No. ______ 
______________________________________________________________________________ 
Introduced by: HON. CARL NICOLAS C. CARI 
______________________________________________________________________________ 
EXPLANATORY NOTE 
The mandate of the State under Section 1, Article XII of the 1987 Constitution is to promote 
industrialization and full employment based on sound agricultural development and agrarian 
reform, through industries that make full and efficient use of human and natural resources, and 
which are competitive in both domestic and foreign markets. Central to this constitutional 
objective is the provision of stable, affordable, and reliable electricity to all Filipinos. 
For decades, the Leyte IV Electric Cooperative, Inc. (LEYECO IV) has been at the 
forefront of delivering electricity services to its coverage areas in the Province of Leyte. These 
include the City of Baybay and the Municipalities of Inopacan, Hindang, Hilongos, Bato, and 
Matalom. The cooperative’s existence and operations have been instrumental in fueling local 
economic growth, ensuring access to education and healthcare, and improving the overall quality 
of life of its member-consumer-owners. 
The grant of a legislative franchise to LEYECO IV seeks to authorize the cooperative to 
construct, install, establish, operate, own, manage, and maintain distribution systems for the 
conveyance of electric power to end-users within its franchise area. This is consistent with 
Republic Act No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001 
(EPIRA)” and Republic Act No. 10531, the “National Electrification Administration Reform Act 
of 2013” which recognizes the role of electric cooperatives in promoting total electrification and 
advancing rural development. 
The franchise ensures that LEYECO IV will continue to be regulated by the Energy 
Regulatory Commission (ERC), and that it shall remain accountable to the government and its 
member-consumer-owners by charging just and reasonable rates, providing reliable services, and 
establishing a consumer desk to address complaints. Moreover, provisions are in place to safeguard 
public interest, such as the government’s reserved right to temporarily take over operations in 
times of national emergency, the requirement to comply with reportorial obligations to Congress, 
and the imposition of fines for non-compliance. 
In view of the foregoing, the immediate passage of this measure is earnestly sought to 
guarantee the continued and improved delivery of electricity in the City of Baybay and the 
municipalities of Inopacan, Hindang, Hilongos, Bato, and Matalom, thereby advancing socio-
economic progress and the welfare of the people of Leyte. 
CARL NICOLAS C. CARI 
Representative          
5th District, Leyte    
September 2, 2025
4:08 pm
4290


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL No. ______ 
______________________________________________________________________________ 
Introduced by: HON. CARL NICOLAS C. CARI 
______________________________________________________________________________ 
AN ACT GRANTING A FRANCHISE TO THE LEYTE IV ELECTRIC 
COOPERATIVE, INC. (LEYECO IV) TO CONSTRUCT, INSTALL, 
ESTABLISH, OPERATE, OWN, MANAGE AND MAINTAIN DISTRIBUTION 
SYSTEMS FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END-
USERS IN THE CITY OF BAYBAY AND MUNICIPALITIES OF INOPACAN, 
HINDANG, HILONGOS, BATO, AND MATALOM, PROVINCE OF LEYTE 
Be it enacted by the Senate and the 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 Leyte IV 
Electric Cooperative, Inc. (LEYECO IV), 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 in the City of Baybay and Municipalities of Inopacan, Hidnang, Hilongos, 
Bato, and Matalom, Province of Leyte. 
As used in this Act, the term 'distribution system’ refers to the system of wires and 
associated facilities, including sub-transmission lines, belonging to a franchised distribution 
utility that extends between the delivery point on the national transmission system or generating 
facility and the metering point/facility of the end-user. 
SECTION 2. Manner of Operations of Facilities. – All electric distribution facilities, 
lines and systems for electric services installed, owned, 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 (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. 
SECTION 3. Authority of the 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. 
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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
 
SECTION 4. Ingress and Egress. – For 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, 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 local 
government unit 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, 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 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 areas, so that businesses and 
industries can 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 (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 
the competitiveness of businesses 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 by and subject to the approval of 
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 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 the lifeline rate to marginalized end-users as mandated under RA No. 9136. 
 
SECTION 7. Promotion of Consumer Interests. – 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 of the Government. – 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. 


 
 
 
 
 
 
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
 
 
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. –  Unless sooner cancelled, the franchise shall be in 
effect for a period of twenty-five (25) years from the effectivity of this Act. This franchise shall be 
deemed ipso facto revoked in the event the Grantee fails to operate continuously for two (2) 
years. 
 
SECTION 11. Acceptance and Compliance. – Acceptance of this franchise shall be 
given in writing to Congress, 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. Non-acceptance shall render the franchise void. 
 
 
SECTION 12. 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 properties, during the construction, installation, operation, and maintenance of the 
distribution system of the Grantee. 
 
SECTION 13. Liability for Damages. – The Grantee shall be liable for any injury to 
persons and damage to properties 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 14. Sale, Lease, Transfer, Usufruct, or Assignment 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: Provided, 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: Provided further, That any such transfer, sale, or assignment is 
in accordance  with  the  constitutional  limitations: Provided  furthermore,  That failure  to  
report  to  Congress  such  change  of  ownership  shall  render  the franchise ipso facto revoked: 
Provided finally, 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. 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 reportorial compliance certificate issued by Congress shall be required 
before any application for a permit or certificate is accepted by the ERC. 


 
 
 
 
 
 
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
 
 
SECTION 16. 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 17. 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 18. Applicability Clause. – 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 RA No. 9136. 
 
SECTION 19. Repealability and   Non-Exclusivity   Clause.   –  This franchise shall be 
subject to amendment, alteration, or repeal by Congress when the public interest so requires and 
shall not be interpreted as an exclusive grant of the privileges herein provided for. 
 
SECTION 20. Existing Powers. – Existing mandates, powers, functions, and privileges 
granted to electric cooperatives under existing laws, including Section 10 of RA No. 10531, 
otherwise known as the “National Electrification Administration Reform Act of 2013”, shall 
remain valid and effective, unless expressly repealed by succeeding laws. 
 
SECTION 21. Separability Clause. – If any of the sections or provisions of this Act are 
held invalid, all other provisions not affected thereby shall remain valid. 
 
SECTION 22. 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 23. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
 
APPROVED,