Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
With the onset of the technological revolution, electricity has become a necessity for 
communities to grow and thrive. The modern society is driven by speed and 
permanence, not stagnancy and inactivity—it is driven through efficacy and sensibility. 
No longer should power outages be a bane to society. As such, it is imperative that 
the service we provide to the people meet such demands and present them with 
choices accorded to the consumers’ own terms. 
The enactment of laws such as the Republic Act No. 9136, also known as the “Electric 
Power Industry Reform Act of 2001”, allowed the government to deliver on its promise 
of affordable basic services to its people and protect the public interest. With R.A. 9136 
enacted, open access was permitted leading to retail competition and a thrust for 
developments, allowing key players in the industry the opportunity to provide a level 
of service worthy of the demands that the State necessitates. As a step onwards a 
more transparent and fair energy sector, the law afforded both the public and private 
sector a chance in the playing field; As a step further in fulfilling the mandate of 
ensuring sustainable supply of electricity for the people, the presence of fresh reliable 
electricity facilities is essential. 
This bill seeks to provide such a dependable electric power distribution system to the 
people of the Province of Camarines Sur by granting the franchise to operate the Bicol 
Light and Power Corporation in the towns of Baao, Balatan, Bato, Buhi, Bula, Nabua, 
And The City of Iriga. It seeks to address the issue of price control through realizing a 
regime of free and fair competition in the energy sector. Finally, it seeks to require 
standards that the grantee must attain in order to secure an effective partnership 
between the Government and the grantee, as well as maintain a high benchmark of 
the promised provided facility. 
July 4, 2022
2:25 pm
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In view of the foregoing, the immediate passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT  
GRANTING THE BICOL LIGHT AND POWER CORPORATION A FRANCHISE TO 
CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE, AND 
MAINTAIN A POWER DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF 
ELECTRIC POWER TO THE END USERS IN THE TOWNS OF BAAO, BALATAN, 
BATO, BUHI, BULA, NABUA, AND THE CITY OF IRIGA, PROVINCE OF 
CAMARINES SUR, AND FOR OTHER PURPOSES 
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 
the Bicol Light and Power Corporation, hereunder referred to as the grantee, its 
successors or assignees, a franchise to construct, install, establish, operate, and 
maintain for commercial purposes and in the public interest, a power distribution 
system for the conveyance of electric power to the end users in the Towns of Baao, 
Balatan, Bato, Buhi, Bula, Nabua, and the City of Iriga, Province of Camarines Sur. 
SEC. 2. Manner of Operation of Facilities. – All electric distribution facilities, 
lines, and systems for electric services owned, maintained, operated, or managed by 
the grantee, its successors or 
assignees, shall be operated and maintained at all 
times in the best manner. It shall be the duty of the grantee, its successors or 
assignees, whenever required to do so by the Energy Regulatory (ERC) or its legal 
successor, or the Department of Energy (DOE) or its legal successor, or the National 
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Electrification Administration (NEA) or its legal successor, or any other authorized 
government agency, to modify, improve, and change such facilities or systems in such 
a manner and to such extent as the progress in science and improvements in the 
electric power service industry may render reasonable and proper. 
 
Whenever practicable and for purposes of maintaining order, safety and 
aesthetics along highways, roads, streets, alleys, or easements, the grantee may allow 
the use of its poles, facilities, or easements by interested parties upon reasonable 
compensation. The ERC or the NEA shall resolve cases of dispute or disagreement 
between parties. 
 
SEC. 3. Authority of the Energy Regulatory Commission (ERC) and the 
National Electrification Administration (NEA). The grantee shall secure from the 
ERC or the NEA, or any other government agency which has jurisdiction over the 
operation of the herein grantee, the requisite certificate of public convenience and 
necessity and other appropriate permits and licenses for the construction and 
operation of its electric distribution system. 
 
SEC. 4. Excavation and Restoration Works. – For the purpose of erecting 
and maintaining poles and other supports for wires or other conductors for the laying 
and maintaining 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, or 
bridges of said provinces, cities and/or municipalities, subject to prior approval of the 
Department of Public Works and Highways (DPWH) or the local government units 
(LGUs) concerned: Provided, however, That any public place, road, highway, 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 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 ten (10)-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 that has been disturbed, altered, or changed by the said grantee, 


 
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its successors or assignees, 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 successors or assignees, at double the amount of the costs and 
expenses for such repair or replacement. 
 
SEC. 5. Responsibility to the Public. — The grantee shall supply electricity 
to its captive market in the urban and rural portions of its franchise area 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 franchise areas. 
 
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 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, an any other competitiveness of businesses and industries. 
 
The exercise of the rights granted herein shall not result to stranded assets and 
stranded contract costs of existing and operating distribution utilities nor to 
unreasonable increases in costs to consumers. 
 
SEC. 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 be subject 
to the approval of the ERC or its legal successor. 
 
The grantee shall identify and itemize in its billing statement to end users the 
components of the retail rate pursuant to Republic Act No. 9136. Such rates charged 
by the grantee shall be made public and transparent. The grantee shall implement 
lifeline rate to marginalized end users as mandated under Republic Act No. 9136. 
 


 
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SEC. 7. 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. 
 
SEC. 8. Commitment to Provide and Promote the Creation of Employment 
Opportunities. — The grantee shall create employment opportunities and shall allow 
on-the-job trainings in their franchise operation: Provided, That priority shall be 
accorded to the residents of the place where their principal office is located: Provided, 
further, That the grantee shall follow the applicable labor standards and allowance 
entitlement under existing labor laws, rules and regulations and similar issuances: 
Provided, finally, That the employment opportunities or jobs created shall be reflected 
in the General Information Sheet (GIS) to be submitted to the Securities and Exchange 
Commission (SEC) annually. 
 
SEC. 9. 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 distribution system 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 said distribution system during 
the period when these shall be so operated. 
 
 
SEC. 10. 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 


 
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this franchise is granted: Provided, That proper condemnation proceedings shall have 
been instituted and just compensation paid. 
 
SEC. 11. Term of Franchise. — This franchise shall be in effect for a period of 
twenty-five (25) years from the date of the effectivity of this Act, unless sooner 
cancelled. This franchise shall be deemed ipso facto revoked in the event that the 
grantee fails to comply with any of the following conditions: 
(a) commence operations within three (3) years from the approval of its 
operating permit by the ERC or the NEA; 
(b) commence operations within five (5) years from the effectivity of this Act; 
and 
(c) operate continuously for two (2) years. 
 
SEC. 12. Renewal or Extension of Franchise. — The grantee shall apply for 
the renewal or extension of its franchise five years before its expiration, reckoned from 
fifteen (15) days after the publication of the franchise in the Official Gazette or in a 
newspaper of general circulation, whichever is earlier. 
 
SEC. 13. 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 or damage to properties, during the construction, 
installation, operation, and maintenance of the distribution system of the grantee. 
 
SEC. 14. Liability to Damages. — The grantee shall be liable for any injury to 
persons or damage to property caused by any accident arising from any defective 
construction of any infrastructure built pursuant to the operation of its business under 
this franchise, or of any neglect or failure to keep its poles and wires in safe condition. 
 
SEC. 15. Sale, Lease, Transfer, Grant of 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, or of the merger 
or transfer of the controlling interest of the grantee, within sixty (60) days after the   
completion of the said transaction. Failure to report to Congress such change of 


 
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ownership shall render the franchise ipso facto revoked. 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. 
 
SEC. 16. Dispersal of Ownership. – In accordance with the constitutional 
provision to encourage public participation in public utilities, the grantee shall offer to 
Filipino citizens at least thirty percent (30%) or a higher percentage that may hereafter 
be provided by law of its outstanding capital stock and list and/or trade in any 
registered or organized securities market in the Philippines within five (5) years from 
the commencement of its operations: Provided, That in cases where public offer of 
shares is not applicable, as determined by relevant government agency, other 
methods of encouraging public participation by citizens must be implemented. 
Noncompliance therewith shall render the franchise ipso facto revoked. 
 
SEC. 17. 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 on Public Services 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 GIS; 
certification of the ERC or the NEA 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 ERC or the NEA. 
 
SEC. 18. Equality Clause. – Any advantage, favor, privilege, exemption, or 
immunity granted under existing franchises, or which may hereafter 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 3 the 
grantees of such franchises: Provided, That the foregoing shall neither apply to nor 
affect the provisions of power distribution franchises concerning territorial coverage, 
the term, or the type of service authorized by the franchise. 


 
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SEC. 19. 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 ERC from the delinquent 
franchise grantee separate from the reportorial penalties imposed by the ERC and the 
same shall be remitted to the Bureau of the Treasury. 
 
SEC. 20. 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. 9136; and Republic Act No. 10531 or "An Act 
Strengthening the National Electrification Administration, Further Amending for the 
Purpose Presidential Decree No. 269, as Amended, Otherwise Known as the “National 
Electrification Administration Decree”. 
 
SEC. 21. Repeatability and Non-exclusivity 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. 
 
SEC. 22. Separability Clause. – If any of the sections or provisions of this Act 
is held invalid, all other provisions not affected thereby shall remain valid. 
 
SEC. 23. Repealing Clause. – All laws, decrees, orders, resolutions, 
instructions, and rules and regulations or parts thereof which are inconsistent with this 
Act are hereby deemed repealed or modified accordingly. 
 
SEC. 24. Effectivity Clause. – This Act shall take effect in fifteen (15) days 
after publication in the Official Gazette or in one (1) newspaper of general circulation 
in the Philippines. 
 
Approved,