Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Regular Session

HOUSE BILL NO. 8793

Introduced by Rep. Raneo E. Abu

AN ACT GRANTING S.I. POWER CORP. A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN DISTRIBUTABLE POWER
TECHNOLOGIES AND MINIGRID SYSTEMS THROUGHOUT THE PHILIPPINES
TO IMPROVE ACCESS TO SUSTAINABLE ENERGY

Explanatory Note

This bill seeks to grant a franchise to S.1. Power Corp (SIPCOR) to construct, install,
establish, operate and maintain Distributable Power Technologies and MiniGrid Systems
throughout the Philippines.

SIPCOR has had a long tenure in the power industry, mainly focusing onproviding power
for Filipinos in far-flung areas. The goal of SIPCOR has always been to uplift the lives ofthe
Poorest Filipinos by bringing electricity to areas for the purpose of stimulating local economic
Browth. It is undisputed that economic growth is directly correlated to the presence of affordable,
reliable and an uninterrupted supply of electricity

Due to archipelagic nature of the Philippines, the challenge has always been to find cost-
effective ways of bringing electricity to areas with no or little existing power infrastructure,
without charging high electricity fees.

Advances in technology, however, now allow the developmentof reliable and cost-
effective energy solutions in such areas. Distributable Power Technologies like solar panel
rooftops and MiniGrid Systems are easily constructed, reasonably reliable, clean, and can
directly provide energy to the electric consumer. More importantly, these technologies are not
reliant on the existence of costly infrastructure, which translates into lower electricity rates due
to lower capital expenditure.


SIPCOR aims to bring this technology to underserved and underdeveloped areas that
desperately need economic growth development for the local economy, ultimately benefitting the
Filipino

In view of the foregoing, the passage of this bill is eamestly sought


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
____ Regular Session

8793
HOUSE BILLNO.

Introduced by Rep. Raneo E. Abu

AN ACT GRANTING S.I. POWER CORP. A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN DISTRIBUTABLE POWER
TECHNOLOGIES AND MINIGRID SYSTEMS THROUGHOUT THE PHILIPPINES
TO IMPROVE ACCESS TO SUSTAINABLE ENERGY

Be it enacted by the Senate and 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 Solar Para
Sa Bayan Corporation, hereunder referred to as the grantee, its successors or assignees, a
franchise to construct, install, establish, operate and maintain in the public interest and for
commercial purposes, distributable power technologies (DPTs) and minigrid systems to
provide electric power to customers and end-users throughout the Philippines. Likewise, the
grantee is authorized to engage in ancillary businesses and any related business which
maximize the utilization of its assets. The grantee shall have the right to open and non-
discriminatory access to any transmission or distribution system, and shall be eligible to
become a member of the wholesale electricity spot market, subject to compensation and
existing regulations.

Distributable Power Technologies refer to devices, assets, facilities and other
technologies of any capacity that may connect directly to customers or end-users, or
interconnect with transmission or distribution systems or minigrid systems, such as but not
limited to rooftop or ground-mounted solar panels, wind turbines, hydrogen fuel cells, backup
gensets, hybrid power systems, wires, controllable loads, metering, communication
equipment, electric vehicle charging stations, and energy storage.


Minigrid System refers to an integrated group of loads and devices, assets, facilities
and other technologies of any capacity, including DPTs, that may operate either
independently from or in conjunction with transmission or distribution systems or other
‘minigrid systems, and is distinct from a distribution system or a generation facility

Minigrid Company refers to any person or entity which constructs, installs,
establishes, operates and maintains minigrid systems or DPTs; may sell, purchase, or trade
electric power with customers or end-users, and is distinct from a distribution utility or a
generation company.

SECTION 2. Manner of Operation of Facilities. — All facilities, lines, and systems
for renewable energy services owned, maintained, operated, or managed by the grantee, its
Successors or assignees, shall be operated and maintained at all times in the proper and
suitable manner. Whenever practicable and for purposes of maintaining order, safety and
aesthetics along 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 costs incurred to accommodate and administer the
use of the grantee’s facilities by such parties.

SECTION 3. Ingress and Egress, Excavation and Restoration Works. — For the
Purpose of constructing, installing, establishing, operating and maintaining poles, DPTs,
minigrid systems, or any part thereof and other supports for wires or other conductors for the
laying and maintaining of underground wires, cables, pipes or other conductors, the grantee,
its successors or assignees, is authorized to make excavations or lay conduits in any of the
Public places, roads, highways, streets, lanes, alleys, avenues, sidewalks, tunnels, or bridges
of said province, cities and/or municipalities, subject to prior approval of the Department of
Public Works and Highways (DPWH) or the local government units (LGU) concerned:
Provided, however, That any public place, road, highway, street, lane, alley, avenue,
sidewalk, tunnel, or bridge disturbed, altered, or changed by reason of erection of poles,
DPTs, minigrid systems, or any part thereof or other supports or the underground laying of
wires, other conductors or conduits, shall be repaired or 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 LGU concerned. Should the grantee, its successors or assignees, after


the fifteen (15)-day notice from the said authority, fail, refuse, or neglect to repair or replace
any part of public place, road, highway, street, lane, alley, avenue, sidewalk, or bridge
disturbed, altered, or changed by the said grantee, its successors or assi: ignees, then the DPWH
or the LGU concerned shall have the right to have the same repaired or replaced in good
order and condition and charge the grantee, its successor or assignees at double the amount of
the costs and expenses for such repair or replacement

SECTION 4. Responsibility to the Public. ~ The grantee shall operate DPTs and
Minigrid Systems in the least cost manner, In the interest of the public good and as far as
feasible, the grantee shall modify, improve, or change its facilities 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 in order
that business and industries shall be able to compete.

SECTION 5. Rates for Services. — To achieve efficient service for its customers and
end-users, the grantee shall be authorized to charge rates equal to or lower than the average
ERC-approved distribution retail supply rates for the preceding year of the distribution utility
with the capacity closest to the grantee’s minigrid system.

SETION 6. Protection of Consumer Interests. — The herein grantee shall establish a
consumer desk that will handle consumer complaints and ensure adequate protection of
consumer interests. The grantee shall act with dispatch on all complaints brought before it.

SECTION 7. 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 facilities
of the grantee 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 said facilities during the
period when they shall be so operated.

SECTION 8. 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 construction, installation, establishment, and efficient
operation and maintenance of DPTs or Minigrid Systems. 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 needed for the realization of the purposes for which this franchise is
granted, including property already devoted to public use or with public character: Provided,
this will result in greater benefit for the public: Provided, further, That the proper
condemnation proceedings shall have been instituted and applicable rules shall have been
complied with,

SECTION 9. Term of Franchise. — This franchise shall be for a term of twenty-five
(25) years from the date of effectivity of this Act, unless sooner cancelled or revoked. This
franchise shall be deemed ipso facto revoked in the event that the grantee fails to operate
continuously for two (2) years.

SECTION 10. 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, liabilities, demands, or actions arising out of accidents that cause injury
to persons and damage to properties, during the construction, installation, operation, and
maintenance of the lines for electric services of the grantee.

SECTION 11. Liability for Damages. ~ The grantee shall be liable for any injury to
persons and damage to property arising from or caused by accident to persons by reason of
any defective construction under the franchise or of any neglect or omission to keep its poles

and wires in safe condition.

SECTION 12. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. — The
grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the
rights and privileges acquired thereunder to any person, firm, company, corporation or other
commercial or legal entity, nor merge with any other corporation or entity, nor transfer the
controlling interest of the grantee, whether as a whole or in part, and whether simultaneously
or contemporaneously, to any person, firm, company, corporation, or entity, unless to a
wholly-owned subsidiary of the grantee or where the grantee is the surviving corporation:
Provided, That any such transfer, sale or assignment is in accordance with the constitutional


limitations. 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 13. Compliance with Labor Standards. ~ The grantee, its successors or
assignees shall comply with the applicable labor standards under existing labor laws, rules
and regulations and such other issuances as may be promulgated by the Department of Labor
and Employment, taking into consideration the nature and peculiarities of the electric power
industry.

SECTION 14. Reportorial 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 of 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 the succeeding year.

The annual report shall include an update on the roll-out, development operation
and/or expansion of business; audited financial statements; latest General Information Sheet
officially submitted to SEC (if applicable); certification of the DOE on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

A reportorial compliance certificate issued by Congress shall be required before any
application for permit or certificate is accepted by the DOE.

SECTION 15. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working day of
noncompliance. The fine shall be collected by the DOE from the delinquent franchise
grantee separate from the reportorial penalties imposed by the DOE and the same shall be
remitted to the National Treasury.

SECTION 16. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchises, or which may hereinafter be granted shall, upon
Prior review and approval of Congress, become part of previously granted power distribution
franchises and shall be accorded immediately and unconditionally to the grantees of such


franchises. Provided, however, That the foregoing shall neither apply to nor affect provisions
concerning territory covered, term, or the type of service authorized by the franchise.

SECTION 17. Applicability of Existing Laws. ~The grantee shall comply with and
be subject to the provisions of Commonwealth Act No. 146, or the “Public Service Act” as
amended; Republic Act No. 9513 or the “Renewable Energy Act”; and Republic Act No.
9136, or the “Electric Power Industry Reform Act”, as amended.

SECTION 18. Separability Clause. — If any of the sections or provisions of this Act
is held invalid, all other provisions bot affected thereby shall remain valid.

SECTION 19. Repealability and Nonexclusivity 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. Repealing Clause. ~ All other laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed, amended or

modified accordingly

SECTION 21. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.