Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 870 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc 
EXPLANATORY NOTE 
Before the national policy for total rural electrification was established in 
1969, accessible and reliable electric service had eluded rural areas in the 
Philippines. At the time, private electric utility operators deemed it impractical 
to extend services to rural areas because from a business perspective, there is 
no potential for profits in the energization of sparsely populated rural areas. 
These remote areas had no access to electricity, or if they had, it was limited for 
a few hours after dark. This effectively excluded the rural economy from the 
industrial boom that had been benefitting cities where electricity was readily 
available. 
Through the persistence of the national government, arrangements were 
made with international organizations to develop and institutionalize the 
Philippine Rural Electrification Program. Realizing that the electrification 
program had been moving slowly because of private utilities’ reluctance in 
serving rural areas, the United States Agency for International Development 
(USAID) recommended that the Philippines adopt the rural electric cooperative 
system of the United States. From piloting two or three electric cooperatives, 
electrification efforts quickly gathered pace in the 1970s until the 1980s with the 
organization of more than 100 electric cooperatives tasked to energize rural areas 
all over the country. In the Philippines, where vast rural areas have long 
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remained underserved, electric cooperatives have emerged as the champions of 
electrification. 
Fast forward to 2024, the dedication and efforts of the 121 electric 
cooperatives in performing their mandate had reached more than 16 million 
household connections across the entire country. There is no doubt that electric 
cooperatives have played a crucial role in extending electricity to remote regions, 
empowering local communities, and bridging the rural-urban divide.  
Electric cooperatives have proven themselves as key agents of change 
especially to the most remote corners of the country. These areas, previously left 
in darkness, have now been illuminated, driving economic growth and unlocking 
the potential of rural communities. By preserving and further empowering them, 
we can propel the nation towards a brighter, more sustainable future. 
Recognizing their significant contribution in the electrification and 
progress of the country, this measure seeks to preserve and empower all electric 
cooperatives by providing for the automatic renewal of their legislative franchises 
for a term of twenty-five (25) years. It is envisioned that such renewal will enable 
them to further build on their achievements and continue fostering economic 
development in their communities. This bill was originally filed during the 19th 
Congress to advance the same objectives, and is being refiled to continue the 
legislative initiative. 
In view of the foregoing, the passage of this bill is earnestly and sincerely 
sought. 
REP. SERGIO C. DAGOOC 
APEC Party-List  


Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 870 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc 
AN ACT 
EXTENDING THE FRANCHISES OF ELECTRIC COOPERATIVES TO 
CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE AND 
MAINTAIN DISTRIBUTION SYSTEMS FOR THE CONVEYANCE OF 
ELECTRIC POWER TO THE END-USERS IN THEIR RESPECTIVE 
FRANCHISE AREAS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. This Act shall be known as the “Electric Cooperative 
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Empowerment Act.” 
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SECTION 2. Declaration of Policy. – It is hereby declared the policy of the 
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State to: 
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a) Promote the sustainable development in the rural areas through rural
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electrification; 
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b) Recognize the contribution of electric cooperatives as partners of the
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national government in achieving total electrification in the country; and 
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c) Enable the unhampered service delivery of electric cooperatives to end-
1 
users in their franchise areas. 
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SECTION 3. Scope and Application. – This Act shall cover electric 
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cooperatives with existing legislative franchises expiring within five (5) years 
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upon the effectivity of this Act. 
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SECTION 4. Automatic Extension of Electric Cooperatives’ Legislative 
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Franchises. – All qualified electric cooperatives as provided under Section 3 of 
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this Act shall be granted automatic extension of their existing legislative 
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franchises: Provided, That electric cooperatives qualified under this Act have 
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complied with the submission of all reportorial requirements to the Congress of 
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the Philippines, through the Committee on Legislative Franchises of the House 
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of Representatives and the Committee on Public Services of the Senate, during 
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the effectivity of their existing franchise.  
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SECTION 5. Term of Franchise. – Unless sooner cancelled, the franchises 
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granted under this Act shall be in effect for a period of twenty-five (25) years from 
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the year of expiration of the grantees’ existing franchises. They shall be deemed 
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ipso facto revoked in the event the grantees fail to operate continuously for two 
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(2) years. 
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SECTION 6. Congressional Oversight. – The Joint Congressional Energy 
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Commission shall exercise oversight powers over implementation of this Act. The 
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National 
Electrification 
Administration 
(NEA) 
and 
Energy 
Regulatory 
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Commission (ERC) shall submit annually to the Commission a comprehensive 
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report on the implementation of this Act not later than the 15th of March every 
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year: Provided, That the report shall include identification of legislative gaps and 
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recommendations, if any. 
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SECTION 7. Existing Powers. – Existing mandates, powers, functions, and 
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privileges granted to electric cooperatives under their existing franchise and all 
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applicable laws shall remain valid and effective, unless expressly repealed by 
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succeeding laws. 
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SECTION 8. Implementing Rules and Regulations. – The NEA and ERC, in 
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consultation with concerned government agencies and stakeholders, shall 
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promulgate the Implementing Rules and Regulations necessary to carry out and 
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implement the provisions of this Act within sixty days (60) from the effectivity of 
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this Act. 
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SECTION 9. Repealing Clause - All laws, presidential decrees, executive 
1 
orders, letters of instruction, administrative rules and regulations or parts 
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thereof which are contrary to or inconsistent with the provisions of this Act are 
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hereby repealed or modified accordingly. 
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SECTION 10. Separability Clause – Should any part or provision of this 
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Act be held unconstitutional or invalid, all other provisions hereof which are not 
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affected thereby shall continue to be in full force and effect.  
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SECTION 11. Effectivity. – This Act shall take effect after fifteen (15) days 
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following its complete publication in the Official Gazette or in two (2) newspapers 
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of general circulation whichever is earlier. 
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Approved, 
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