Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 9838 
Introduced by Representative WOWO FORTES 
___________________________________________________________________ 
EXPLANATORY NOTE 
The Sorsogon II Electric Cooperative (SORECO II) was organized and 
registered according to the provisions of Presidential Decree No. 269, as amended, 
and under the supervisory authority of the National Electrification Administration (NEA) 
with a mandate to perform electrification in the City of Sorsogon, the Municipalities of 
Donsol, Pilar, Castilla, Gubat, Prieto Diaz and Barcelona and its neighboring suburbs 
of Sorsogon on an area coverage basis. Under 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 SORECO II to 
continue to provide an electric power distribution system to the people of the 
abovementioned areas within the Province of Sorsogon. Furthermore, it seeks to 
require standards that the grantee must attain to secure an effective partnership 
between the State and the grantee, as well as to set high standards for the provided 
facility. 
The exceptional performance of SORECO II is concluded from the results 
produced since it was granted a franchise to operate electric light and power services 
in one (1) City and six (6) municipalities of Sorsogon province. SORECO II has 
energized one hundred percent (100%) of the barangays within its franchise area. 
Notably, SORECO II has been consistently categorized for four (4) years as an “AA” 
cooperative since 2017, and for the year 2022, as an “AAA Cooperative” the highest 
categorization of an electric cooperative set by the supervising government agency – 
the NEA. 
Through the implementation of policies aimed at improving its service and by 
the proper and responsible management that the cooperative now has, SORECO II 
now aims to maintain its Category AAA cooperative to continue its mandate of total 
electrification, service reliability, and least cost power supply to its member-consumer-
owners (MCO’s). 
The enactment of this bill will see to it that SORECO II will continue its avowed 
mission of “accelerated development of the SORECO II area-coverage through 
reliable service made possible by meeting its viable financial, institutional, technical 
and consumer service satisfaction responsibility while meeting its performance targets 
set annually by NEA. Moreover, this will ensure the continuous delivery of electricity 
from SORECO II to the mentioned City and Municipalities and will continue the path 
toward the progress of Sorsogon. The passage of this bill will be instrumental in 
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ensuring the quality, reliability, security, and affordability of the supply of electric power 
to the Filipino people. 
In view of the foregoing, the approval of this bill is earnestly sought. 
ATTY. WOWO FORTES 
 Representative 
 Second District, Province of Sorsogon 


Republic of the Philippines 
Second Regular Session 
HOUSE OF REPRESENTATIVES 
H.B. No. 9838 
Introduced by Representative WOWO FORTES 
___________________________________________________________________ 
AN ACT GRANTING THE SORSOGON II ELECTRIC COOPERATIVE (SORECO II) 
A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, 
MANAGE AND MAINTAIN DISTRIBUTION SYSTEMS FOR THE CONVEYANCE 
OF ELECTRIC POWER TO THE END USERS IN THE CITY OF SORSOGON AND 
IN THE MUNICIPALITIES OF DONSOL, PILAR, CASTILLA, GUBAT, PRIETO 
DIAZ, BARCELONA IN THE PROVINCE OF SORSOGON 
Be it enacted by the Senate and House of Representatives of the Republic 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 
Sorsogon II Electric Cooperative (SORECO II), hereunder referred to as the grantee, 
its successors or assigns a franchise to construct, install, establish, operate, own, 
manage and maintain in the public interest and commercial purposes,  a distribution 
system for the conveyance of electric power to the end users in the city of Sorsogon; 
and in the municipalities of Donsol, Pilar, Castilla, Gubat, Prieto Diaz, Barcelona in the 
Province of Sorsogon. 
As used in this Act, the distribution system refers to wires and associated facilities 
including sub-transmission lines belonging to a franchised distribution utility extending 
between the delivery point on the national transmission system or generating facility 
and the metering point/facility of the end-users. 
SECTION 2. Manner of Operations of Facilities. – All electric distribution facilities, lines 
and systems for electric services installed, owned, operated, managed or maintained 
by the grantee, its successors or assigns shall be operated or maintained at all times 
in a superior manner, and it shall be the duty of the grantee, its successors or assigns, 
whenever required to do so by the Energy Regulatory Commission (ERC), or its legal 
successor, or the Department of Energy (DOE), or its legal successor, or any other 
government agency concerned to modify, improve and change such facilities or 
systems in such manner and to such extent as the progress in science or technology 
and improvements or innovations in the electric power services may render 
reasonable and proper.  
Whenever practicable, and for purposes of maintaining order, safety and aesthetics 
along the 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 the costs incurred to 
Nineteenth Congress of the 


accommodate and administer the use of the grantee’s facilities by such parties. The 
ERC shall decide in case of dispute or disagreement between the parties.  
SECTION 3. Authority of the ERC. – The grantee shall secure from the ERC or any 
government agency having jurisdiction over their operations, the certificate of public 
convenience and necessity and any other license, permit or authority indispensable 
for the construction and operation of the electric power distribution system.   
SECTION 4. Ingress and Egress. – For the purpose of erecting and maintaining the 
poles or other supports for said facilities, wires or other conductors or for the purpose 
of laying and maintaining said facilities, wires, cables or other conductors, it shall be 
lawful for the grantee, its successors, or assignees, with the prior approval of the 
Department of Public Works and Highways (DPWH) or the local government unit 
concerned, as may be appropriate, to make excavations or lay conduits in any of the 
public places, highways, roads, streets, lanes, alleys, avenues, sidewalks, or bridges 
of the province, cities or municipalities: Provided, however, that a public place, 
highway, road, 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 and replaced in workmanlike 
manner by the grantee, its successors or assignees, in accordance with the standards 
set by the DPWH or the local government unit concerned. Should the grantee, its 
successors or assignees, after the ten (10)-day notice from the grant of authority, fail, 
refuse or neglect to repair or replace any part of public place, highway, road, street, 
lane, alley, avenue, sidewalk, or bridge altered, changed, or disturbed by the said 
grantee, its successors or assignees, then the DPWH or the local government unit 
concerned shall have the right to have the same repaired and replaced in good order 
and condition and charge the grantee, its successors or assignees, double the amount 
of the cost and expenses for such repair or replacement.  
SECTION 5. Responsibility to the Public. – The Grantee shall supply electricity to its 
captive market 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 
franchised areas in order that business and industries shall be able to compete.  
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 (RA) 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, and other activities that will hinder competitiveness of business and 
industries. 
SECTION 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 subject to the 
approval of the ERC or its legal successor.  
The grantee shall identify and segregate in its electricity bill to the end-users the 
components of the retail rate pursuant to RA No. 9136, unless otherwise amended. 
Such rates charged by the grantee to the end-users shall be made public and 


transparent. The grantee shall implement lifeline rate to marginalized end-users as 
mandated under RA No. 9136.  
SECTION 7.  Promotion of Consumer Interests. – The herein grantee shall establish 
a consumer desk that will handle consumer complaints and ensure adequate 
promotion of consumer interests. The grantee shall act with dispatch on all complaints 
brought before it.  
SECTION 8.  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 stations or facilities 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 the stations or 
facilities during the period when these shall be so operated.  
SECTION 9. 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 this franchise is granted: 
Provided, that proper expropriation proceedings shall have been instituted and just 
compensation paid.  
SECTION 10. Term of Franchise. – Unless sooner cancelled, the franchise shall be in 
effect for a period of twenty-five (25) years from the effectivity of this Act. This franchise 
shall be deemed ipso facto revoked in the event the grantee fails to operate 
continuously for two (2) years. 
SECTION 11. Acceptance and Compliance. – Acceptance of this franchise shall be 
given in writing to Congress, through the Committee on Legislative Franchises of the 
House of Representatives and the Committee on Public Services of the Senate within 
sixty (60) days from the effectivity of this Act. Upon such acceptance, the grantee shall 
exercise the privileges granted under this Act. Nonacceptance shall render the 
franchise void.  
SECTION 12. 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, accounts, demands, or actions arising from accidents 
causing injury to persons or damage to properties, during the construction, installation, 
operation, and maintenance of the distribution system of the grantee.  
SECTION 13.  Liability for Damages. – The grantee shall be liable for any injury to 
persons and damage to properties arising from accidents by reason of any defective 
construction under this franchise or of any neglect or omission to keep its poles and 
wires in safe condition.  


SECTION 14. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. – The 
grantee shall not sell, lease, transfer, grant the usufruct of, or assign this franchise or 
the rights and privileges acquired thereunder to any person, firm, company, 
corporation, or other commercial or legal entity, or merge with any other corporation, 
or entity, or shall transfer the controlling interest of the grantee, whether as a whole or 
in parts, and whether simultaneously or contemporaneously, to any such person, firm, 
company, corporation, or entity without the prior approval of the Congress: Provided, 
that Congress shall be informed of any lease, transfer, granting the usufruct of, sale, 
or assignment of franchise or the rights and privileges acquired thereunder, or of the 
merger, or sale of the controlling interest within sixty (60) days after the completion of 
said transaction: Provided further, that any such transfer, sale, or assignment is in 
accordance with the constitutional limitations: Provided furthermore, that failure to 
report to Congress such change of ownership shall render the franchise ipso facto 
revoked: Provided finally, that 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 15. Reportorial Requirement. – The grantee shall submit an annual report 
to Congress, through the Committee on Legislative Franchises of the House of 
Representatives and the Committee on 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 every year during the term of the franchise. The reportorial 
compliance certificate issued by Congress shall be required before any application for 
permit or certificate is accepted by the ERC.  
SECTION 16. Fine. – The failure of the grantee to submit the requisite annual report 
to Congress shall be penalized with a fine in the amount of five hundred pesos 
(P500.00) per working day of noncompliance which shall be collected by the ERC. The 
fine shall be collected separately from the reportorial penalties imposed by the ERC 
and shall be remitted to the Bureau of the Treasury.  
SECTION 17. Equality Clause.  – Any advantage, favor, privilege, exemption, or 
immunity granted under existing franchises, or which may hereafter be granted, upon 
prior review and approval of Congress, shall become part of this franchise and shall 
be accorded immediately and unconditionally to the herein grantee: Provided, 
however, that the foregoing shall neither apply to nor affect provisions concerning 
territory covered by the franchise, the life span of the franchise or the type of service 
authorized by the franchise: Provided, further, that the foregoing shall not apply to the 
sale, lease, transfer, grant of usufruct, or assignment of legislative franchises with prior 
congressional approval. 
SECTION 18.  Applicability Clause. – The grantee shall comply with and be subject to 
the provisions of Commonwealth Act No. 146, as amended, otherwise known as the 
"Public Service Act" and RA No. 9136.  
SECTION 19. Repealability and Non-Exclusivity Clause.  – This franchise shall be 
subject to amendment, alteration, or repeal by Congress when the public interest so 
requires and shall not be interpreted as an exclusive grant of the privileges herein 
provided for.  
SECTION 20. Existing Powers. – Existing mandates, powers, functions, and privileges 
granted to electric cooperatives under existing laws, including Section 10 of RA No. 


10531, otherwise known as the “National Electrification Administration Reform Act of 
2013”, shall remain valid and effective, unless expressly repealed by succeeding laws. 
SECTION 21.  Separability Clause. – If any of the sections or provisions of this Act is 
held invalid, all other provisions not affected thereby shall remain valid. 
SECTION 22. Repealing Clause. –  All laws, presidential decrees, executive orders, 
letters of instruction, administrative rules and regulations or parts thereof which are 
contrary to or inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SECTION 23.  Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,