Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. 9551 
Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR. 
AN ACT 
GRANTING THE AKLAN ELECTRIC COOPERATIVE A FRANCHISE TO 
CONSTRUCT, OPERATE, AND MAINTAIN A DISTRIBUTION SYSTEM FOR 
THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS OF THE 
SEVENTEEN (17) MUNICIPALITIES OF THE PROVINCE OF AKLAN, TWO (2) 
MUNICIPALITIES OF PANDAN AND LIBERTAD ALL IN THE PROVINCE OF 
ANTIQUE AND IN BARANGAY DAMAYAN, IN THE MUNICIPALITY OF 
SAPIAN, CAPIZ. 
EXPLANATORY NOTE 
Aklan Electric Cooperative, Inc. (AKELCO) was officially registered with the National 
Electrification Administration (NEA) on April 25, 1972, under Registration Certificate No. 23. 
Subsequently, on June 5, 1978, NEA granted AKELCO a 50-year franchise encompassing the 
municipalities of Altavas, Libacao, Nabas, Buruanga, Banga, Ibajay, Makato, New 
Washington, Balete, Kalibo, Malay (including Boracay Island), Numancia, Madalag, Batan, 
Lezo, Malinao, Tangalan, all within Aklan Province, and two municipalities of Antique—
Pandan and Libertad. The inclusion of Pandan and Libertad, Antique, in AKELCO's franchise 
coverage was a strategic decision by NEA based on their closer proximity to AKELCO than 
the Antique Electric Cooperative (ANTECO). 
Over the years, Aklan Electric Cooperative, Inc., has evolved into a mega-large electric 
cooperative, consistently achieving a triple "A" rating for its exceptional performance. The 
cooperative has successfully energized one hundred percent (100%) of its franchise area. 
November 15, 2023
11:39 am


Notably, AKELCO has maintained a system loss average of not more than 9%, effectively 
minimizing power outages, and ensuring a high level of collection efficiency. 
The proposed bill seeks to support the continuous delivery of electric services to 
AKELCO's Member-Consumer-Owners. This initiative aligns with the mandate outlined in the 
Electric Power Industry Reform Act (EPIRA), emphasizing the need for total electrification of 
the countryside. The bill aims to ensure the quality, reliability, sustainability, security, and 
affordability of electric power supply, ultimately promoting economic development in rural 
areas. 
In consideration of the aforementioned accomplishments and the vital role AKELCO 
plays in providing essential electric services to its communities, the passage of this bill is 
earnestly sought. It represents a crucial step in upholding the commitment to electrify and 
advance the economic development of the covered areas, in adherence to the principles set 
forth by the EPIRA. 
In view of the foregoing, the passage of this bill is earnestly sought. 
TEODORICO T. HARESCO, JR


NINETEENTH CONGRESS OF THE 
 REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
House Bill No.  9551 
Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR. 
AN ACT 
GRANTING THE AKLAN ELECTRIC COOPERATIVE A FRANCHISE TO 
CONSTRUCT, OPERATE, AND MAINTAIN A DISTRIBUTION SYSTEM FOR 
THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS OF THE 
SEVENTEEN (17) MUNICIPALITIES OF THE PROVINCE OF AKLAN, TWO (2) 
MUNICIPALITIES OF PANDAN AND LIBERTAD ALL IN THE PROVINCE OF 
ANTIQUE AND IN BARANGAY DAMAYAN, IN THE MUNICIPALITY OF 
SAPIAN, CAPIZ. 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress  assembled: 
SECTION 1. Short Title. – This Act shall be known as the “AKELCO Franchise Act”. 
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SECTION 2. Nature and Scope of Franchise. –  Subject to the provisions of the Constitution 
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and applicable laws, rules and regulations, there is hereby granted to Aklan Electric 
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Cooperative (AKELCO), hereunder referred to as the grantee, its successors or assignees, a 
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franchise to construct, install, establish, operate and maintain for commercial purposes and 
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public interest, a power distribution system for the conveyance of electric power to the end 
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users in the seventeen (17) municipalities of the province of Aklan, namely: Altavas, Banga, 
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Balete, Batan, Buruanga, Ibajay, Kalibo,  Lezo, Libacao, Madalag, Malay, Malinao, Makato, 
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Nabas, New Washington, Numancia, Tangalan. Two (2) municipalities in the province of 
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Antique, namely: Pandan and Libertad and Barangay Sapian in the municipality of Sapian, 
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Capiz. 
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As used in this Act, Distribution system refers to the system of wires and associated facilities 
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including sub-transmission lines belonging to franchised distribution utility extending between 
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the delivery point on the national transmission system or generating facility and the metering 
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point/facility of the end-user. 
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SECTION 3.  Manner of Operation of Facilities. – All electric distribution facilities, lines 
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and system electric services owned, maintained, operated or managed by the grantee, its 
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successors or assignees, shall be operated and maintained at all times in the best manner and it 
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shall be the duty of the grantee, its successors or assignees, whenever required to do so by the 
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Energy Regulatory Commission (ERC) or its legal successor, or the Department of Energy 
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(DOE) or its legal successor, or the National Electric Administration (NEA) or its legal 
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successor, or any authorized government agency, to modify, improve and change such facilities 
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or system in such a manner and to such extent as the progress in science and improvements in 
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the electric power service industry may render reasonable and proper. Whenever practicable 
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and for purposes of maintaining order, safety and aesthetic along highway, roads, streets, 
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alleys, or easement, the grantee may allow the use of its poles, facilities, or easements by 
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interested parties upon reasonable compensation. The ERC or NEA shall resolve cases of 
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dispute or disagreement between parties. 
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SECTION 4. Authority of the Energy Regulatory Commission (ERC) and the National 
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Electrification Administration (NEA). – The grantee shall secure from ERC or NEA, or any 
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other government agency which has jurisdiction over the operation of the herein grantee, the 
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requisite certificate of public convenience and necessity and other appropriate permits and 
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licenses for the construction and operation of its electric distribution system. 
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SECTION 5. Excavation and Restoration Works. – For the purpose of erecting and 
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maintaining poles and other supports for wires or other conductors for the laying and 
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maintaining underground wires, cables, pipes or other conductors, the grantee, its successors 
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or assignees, is authorized to make excavations or lay conduits in any of the public places, 
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roads, highways, streets, lanes, alleys, avenues, sidewalks, or bridges of the said provinces, 
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cities, and/or municipalities, subject to prior approval of the Department of Public Works and 
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Highways (DPWH) or the Local Government Units (LGUs) concerned; Provided, however, 
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that any public place, road, highway, street, lane, alley, avenue, sidewalk, or bridge disturbed, 
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altered, or changed by reason of erection of poles or other supports or the underground laying 
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wires, other conductors or conduits, shall be repaired or replaced in workmanlike manner at 
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the expense of the grantee, its successors or assignees in accordance with standards set by the 
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DPWH or the LGU concerned. Should the grantee, its successors or assignees, after the ten 
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(10) day notice from the said authority, fail, refuse or neglect to repair or replace any part of 
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the public place, road, highway, street, lane, alley, avenue, sidewalk or bridge that has been 
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disturbed, altered or changed by the said grantee, its successors or assignees, then the DPWH 
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or LGU concerned shall have the right to have the same repaired or replaced in good order and 
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condition and charge the grantee, its successor or assignees at double the amount of the cost 
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and expenses for such repair or replacement. 
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SECTION 6. Responsibility to the Public. – The grantee shall supply electricity to its captive 
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market in the urban and rural portions of its franchise area in the least costly manner. In the 
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interest of the public good and as far as feasible and whatever required by the ERC, the grantee 
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shall modify, improve or change its facilities, poles, lines, systems, and equipment for the 
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purpose of providing efficient and reliable service and reduced electricity costs. The grantee 
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shall charge reasonable and just power rates for its services to all types of consumers within 
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the franchised areas. 
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The grantee shall have the obligation to provide open and non-discriminatory access to its 
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distribution system and services for any end user within its franchise area consistent with 
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Republic Act No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001”. 
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The grantee shall not engage in any activity that will constitute an abuse of market power such 
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as unfair trade practices, monopolistic scheme, and any other activities that will hinder 
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competitiveness of business and industries. 
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The exercise of the rights granted herein shall not result to stranded assets and stranded contract 
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cost of existing and operating distribution utilities nor to unreasonable increases in costs to 
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consumers. 
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SECTION 7. Rates of Services. – The retail rates and charges for the distribution of electric 
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power by the grantee to its end users shall be regulated by and subject to the approval of the 
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ERC or its legal successor. 
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The grantee shall identify and itemize in its billing statement to end users the components of 
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the retail rate charged pursuant to Republic Act No. 9136. Such rates charged by the grantee to 
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the end users shall be made public and transparent. The grantee shall implement a lifeline rate 
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to marginalized end users as mandated under Republic Act No. 9136. 
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SECTION 8. Protection of Consumer Interest. – The herein grantee shall establish a 
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consumer desk that will handle consumer complaints and ensure adequate protection of 
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consumer interests. The grantee shall act with dispatch on all complaints brought before it. 
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SECTION 9. Right of the Government. – A special right is hereby reserved to the President 
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of the Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or 
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disturbance of peace and order: to temporarily take over and operate the distribution system of 
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the grantee, to temporarily suspend the operation of any station or facility in the interest of 
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public safety, security and public welfare; or to authorize the temporary use and operation 
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thereof by any agency of the government, upon due compensation to the grantee, for the use of 
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said distribution system during the period when they shall be so operated. 
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SECTION 10. Right of Eminent Domain. – Subject to the limitations and procedures 
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prescribed by law, the grantee is authorized to exercise the right of eminent domain insofar as 
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it may be reasonably necessary for the efficient maintenance and operation of services. The 
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grantee is authorized to install and maintain its poles, wires, and other facilities over and across 
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public property, including streets, highways, forest reserves, and other similar property of the 
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Government of the Philippines, its branches, or any of its instrumentalities. The grantee may 
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acquire such private property as is actually necessary for the realization of the purposes for 
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which this franchise is granted: Provided, that proper condemnation proceedings shall have 
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been instituted and just compensation paid. 
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SECTION 11. Term of Franchise. – This franchise shall be for a term of Twenty-Five (25) 
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years from the date of the effectivity of this Act, unless sooner revoked or cancelled by 
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Congress for any violation of the terms and/or provisions of the franchise herein granted. 
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SECTION 12. Renewal or Extension of Franchise. – The grantee shall apply for the renewal 
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or extension of its franchise five (5) years before its expiration, reckoned from fifteen (15) days 
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after the publication of the franchise in the Official Gazette or a newspaper of general 
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circulation. 
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SECTION 13. Warranty in Favor of National and Local Government. – The grantee shall 
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hold the National, provincial, city, and municipal government of the Philippines free from all 
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claims, liabilities, demands, or actions arising out of accidents that cause injury to persons or 
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damage to properties, during the construction, installation, operation, and maintenance of the 
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distribution system of the grantee. 
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SECTION 14. Liability to Damages. – The grantee shall be liable for any injury to persons or 
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damage to property arising from or caused by any accident by reason of any defective 
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construction of any infrastructure built pursuant to the operation of its business under this 
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franchise, or of any neglect or failure to keep its poles and wires in safe condition. 
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SECTION 15. Commitment to Provide and Promote the Creation of Employment 
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Opportunities. – The grantee shall create employment opportunities and shall allow on-the-job 
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trainings in their franchise operation: Provided, that priority shall be accorded to the residents 
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of the place where their principal office is located: Provided, further, that the  grantee shall 
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follow the applicable labor standards and allowance entitlement under existing labor laws, rules 
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and regulations and similar issuances: Provided, finally, that the employment opportunities or 
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jobs created shall be reflected in the General Information Sheet (GIS) to be submitted to the 
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Securities and Exchange Commission (SEC) annually. 
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SECTION 16. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. – The 
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grantee shall not sell, lease, transfer, grant the usufruct of nor assign this franchise or the rights 
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and privileges acquired thereunder to any person, firm company, corporation or other 
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commercial or legal entity, nor merge with any other corporation or entity, nor the controlling 
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interest of the grantee be transferred, simultaneously or contemporaneously, to any such 
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person, firm, company, corporation, or entity without the prior approval of the Congress of the 
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Philippines. Congress shall be informed of any sale, lease, transfer, grant of usufruct, or 
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assignment of franchise or rights and privileges acquired thereunder, ot of the merger or 
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transfer of the controlling interest of the grantee, within sixty (60) days after completion of the 
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said transaction. Failure to report to Congress such change of ownership shall render the 
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franchise ipso facto revoked. Any person or entity to which this franchise is sold, transferred 
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or assigned, shall be subject to the same conditions, terms, restrictions and limitations of this 
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Act. 
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SECTION 17. Reportorial Requirements. – The grantee shall submit an annual report to the 
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Congress of the Philippines, through the Committee on Legislative Franchises of the House of 
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the Representatives and the Committee of the Public Services of the Philippine Senate, on its 
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compliance with the terms and conditions of the franchise and on its operations on or before 
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April 30 of the succeeding year. 
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SECTION 18. Equality Clause. – Except for taxes and customs duties, any advantage, favor, 
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privilege, exemption, or immunity granted under existing franchises, or may hereinafter be 
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granted shall, upon prior review and approval of Congress, become part of previously granted 
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power distribution franchises and shall be accorded immediately and unconditionally to the 
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grantees of such franchises: Provided, however, That the foregoing shall neither apply to nor 
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affect provisions concerning territory covered, term, or type of service authorized by the 
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franchise: Provided, further, That the foregoing shall not apply to the sale, lease, transfer, grant 
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of usufruct, or assignment of legislative franchise with prior congressional approval. 
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SECTION 19. Applicability of Existing Laws. – The grantee shall comply with the subject to 
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the provisions of “Commonwealth Act No. 146 or the Public Service Act”, as amended; 
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Republic Act No. 9136; and Republic Act No. 10531 or the “National Electrification 
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Administration Reform Act of 2013”. 
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SECTION 20. Fine. – Any grantee who fails to submit the annual report to Congress shall be 
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penalized by a fine of Five Hundred (Php500.00) Pesos per working day of non-compliance. 
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The fine shall be collected separately by the ERC distinct from the penalties it imposes for non-
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compliance of its own reportorial requirements. 
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SECTION 21. Repealing Clause. – Any law, presidential decree or issuance, executive order, 
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letter of instruction, administrative order, rule, or regulation contrary to or inconsistent with 
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the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 22. Separability Clause. – If any provision is held invalid or unconstitutional, the 
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remainder of the law or provision not otherwise affected shall remain valid and subsisting. 
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SECTION 23. Effectivity. This Act shall take effect fifteen (15) days after its publication in 
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the Official Gazette or in a newspaper of general circulation. 
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Approved, 
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