Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
       House Bill No.  3077 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List Representative 
Sergio C. Dagooc, APEC Party-List Representative 
EXPLANATORY NOTE 
The Camarines Norte Electric Cooperative, Inc. (CANORECO) was organized 
and registered with the National Electrification Administration (NEA) on 
October 23, 1975 with a mandate to perform electrification in the province of 
Camarines Norte on an area coverage basis. Currently, it has a coverage area 
of twelve (12) municipalities, namely: Basud, Capalonga, Daet, Jose 
Panganiban, Labo, Mercedes, Paracale, San Lorenzo Ruiz, San Vicente, Sta. 
Elena, Talisay and Vinzons.  
Pursuant to Section 27 of Republic Act No. 9136, otherwise known as the 
Electric Power Industry Reform Act (EPIRA), the power to grant franchises 
shall be vested exclusively in the Congress of the Philippines. Thus, this bill 
seeks to grant a congressional franchise to CANORECO to provide an electric 
power distribution system to the people of Camarines Norte.  The bill also 
establishes standards that the franchise grantee must attain in order to 
implement an effective partnership between the government and the 
distribution utility as its implementing partner to achieve total electrification. 
CANORECO possesses the technical, financial and institutional capabilities 
to continue performing the electrification program in the municipalities 
covered by their franchise area.  
The enactment of this bill will ensure the continuous delivery of electric 
service from CANORECO to its franchise area and will continue to be in the 
forefront of the province’s economic development.  Likewise, granting of this 
franchise will be in line with the policy of the State, as provided for in EPIRA, 
August 5, 2025
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to accelerate the total electrification of the country and guarantee the 
cooperative’s commitment to deliver efficient, reliable, and affordable supply 
of electric power with strong involvement of the member-consumer-owners 
(MCOs). 
In view of the foregoing, the 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.  3077 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List Representative 
Sergio C. Dagooc, APEC Party-List Representative 
AN ACT 
GRANTING THE CAMARINES NORTE ELECTRIC COOPERATIVE, INC. 
(CANORECO) A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, 
OPERATE, OWN, MANAGE AND MAINTAIN DISTRIBUTION SYSTEMS FOR 
THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN ALL 
MUNICIPALITIES WITHIN THE PROVINCE OF CAMARINES NORTE 
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 Camarines Norte Electric Cooperative, Inc. 
3 
(CANORECO), hereunder referred to as the Grantee, its successors or assigns 
4 
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 all 
7 
municipalities within the Province of Camarines Norte. 
8 
As used in this Act, distribution system refers to the system of wires 
9 
and associated facilities including sub-transmission lines belonging to a 
10 
franchised distribution utility extending between the delivery point on the 
11 
national transmission system or generating facility and the metering 
12 
point/facility of the end-users. 
13 
SEC. 2. Manner of Operation of Facilities. – All electric distribution 
14 


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


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


 
 
 
SEC. 9.  Right of the Government. – A special right is hereby reserved 
1 
to the President of the Philippines, in times of war, rebellion, public peril, 
2 
calamity, emergency, disaster or disturbance of peace and order: to 
3 
temporarily take over and operate the stations or facilities of the Grantee; to 
4 
temporarily suspend the operation of any station or facility in the interest of 
5 
public safety, security, and public welfare; or to authorize the temporary use 
6 
and operation thereof by any agency of the government, upon due 
7 
compensation to the Grantee, for the use of the stations or facilities during 
8 
the period when these shall be so operated. 
9 
 
SEC. 10.  Right of Eminent Domain. – Subject to the limitations and 
10 
procedures prescribed by law, the Grantee is authorized to exercise the right 
11 
of eminent domain insofar as it may be reasonably necessary for the efficient 
12 
maintenance and operation of services.  The Grantee is authorized to install 
13 
and maintain its poles, wires, and other facilities over and across public 
14 
property, including streets, highways, forest reserves, and other similar 
15 
property of the Government of the Philippines, its branches, or any of its 
16 
instrumentalities.  The Grantee may acquire such private property as is 
17 
actually necessary for the realization of the purposes for which this franchise 
18 
is granted: Provided, That proper expropriation proceedings shall have been 
19 
instituted and just compensation paid. 
20 
 
SEC. 11. Term of Franchise. – Unless sooner cancelled, the franchise 
21 
shall be in effect for a period of twenty-five (25) years from the date of 
22 
effectivity of this Act.  This franchise shall be deemed ipso facto revoked in the 
23 
event the Grantee fails to operate continuously for two (2) years. 
24 
 
SEC. 12. Warranty in Favor of the National and Local 
25 
Governments. – The Grantee shall hold the national, provincial, city, and 
26 
municipal governments of the Philippines free from all claims, accounts, 
27 
demands, or actions arising from accidents causing injury to persons or 
28 
damage to properties, during the construction, installation, operation, and 
29 
maintenance of the distribution system of the Grantee. 
30 
 
SEC. 13. Liability for Damages. – The Grantee shall be liable for any 
31 
injury to persons and damage to properties arising from accidents by reason 
32 
of any defective construction under this franchise or of any neglect or 
33 
omission to keep its poles and wires in safe condition. 
34 
 
SEC. 14. Sale, Lease, Transfer, Usufruct, or Assignment of 
35 
Franchise. – The Grantee shall not sell, lease, transfer, grant the usufruct, 
36 
or assign this franchise or the rights and privileges acquired thereunder to 
37 
any person, firm, company, corporation, or other commercial or legal entity, 
38 
or merge with any other corporation, or entity, or shall transfer the controlling 
39 


 
 
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: Provided, 
3 
That Congress shall be informed of any sale, lease, transfer, grant of usufruct, 
4 
sale, or assignment of franchise or the rights and privileges acquired 
5 
thereunder, or of the merger, or sale of the controlling interest within sixty 
6 
(60) days after the completion of said transaction: Provided, further, That any 
7 
such transfer, sale, or assignment is in accordance with the constitutional 
8 
limitations: Provided, furthermore, That failure to report to Congress such 
9 
change of ownership shall render the franchise ipso facto revoked: Provided, 
10 
finally, That any person or entity to which this franchise is sold, transferred, 
11 
or assigned, shall be subject to the same conditions, terms, restrictions, and 
12 
limitations of this Act. 
13 
 
SEC. 15. Reportorial Requirement. – The Grantee shall submit an 
14 
annual report to Congress, through the Committee on Legislative Franchises 
15 
of the House of Representatives and the Committee on Public Services of the 
16 
Senate, on its compliance with the terms and conditions of the franchise and 
17 
on its operations on or before April 30 of every year during the term of the 
18 
franchise.  The reportorial compliance certificate issued by Congress shall be 
19 
required before any application for permit or certificate is accepted by the 
20 
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, the life span of the franchise or the type of service authorized by 
34 
the franchise: Provided, further, That the foregoing shall not apply to the sale, 
35 
lease, transfer, grant of usufruct, or assignment of legislative franchises with 
36 
prior congressional approval. 
37 
 
 SEC. 18. Applicability of Existing Laws. – The Grantee shall comply 
38 
with and be subject to the provisions of Commonwealth Act No. 146 or the 
39 
“Public Service Act”, as amended, RA 9136, and RA 10531 or the “National 
40 


 
 
Electrification Administration Reform Act of 2013.” 
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