Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO.
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO.
Introduced by:   HON. CLAUDE P. BAUTISTA
EXPLANATORY NOTE
This  Bill  seeks  that  an  electric  cooperative which  will  operate  in  the  province  of
Davao  Occidental  known  as  DAVAO  OCCIDENTAL  ELECTRIC  COOPERATIVE
(DOCCECO) be granted a legislative franchise in order to operate.
Davao Occidental  is geographically located  at the southwestern tip of the  Davao
region  in  Mindanao,  from  which  its  name  was  derived.  It was  originally  part  of the
second district of Davao del sur.  It was created by virtue of R.A.10360,  enacted by
the 15th Congress of the Republic of the Philippines and was ratified October 28, 2013
thru a plebiscite.
Davao Occidental, carved from its mother province, Davao del Sur, is comprised of
five Municipalities, namely, Sta. Maria, Malita, Don Marcelino, Jose Abad Santos, and
the island municipality of Sarangani, energized by the Davao Sur Electric Cooperative
(DASURECO) which was granted by the National Electric Commission a sole electric
franchise  to   operate   light   and   power  service   in   Davao   del   Sur  for   50   years.
DASURECO was formally organized as the 63rd Electric Cooperative in the Philippines
in June 01 I 1975 and started its operation in the Municipality of Sta Maria in March 24,
1978  and  in  the  Municipalities  of  Malita,   Don  Marcelino,  Jose  Abad  Santos  and
Sarangani in December 17,1978.
Based on the energization level as of July 2022 provided by DASURECO, the total
number  of  actual  consumers  of  the  five  (5)  municipalities  in  the  province  Davao
Occidental is 41, 964 (33, 393 households) out of 77, 431, only 54 percent which is an
indication that 46 percent has yet to be energized.


As provided in Republic Act 10531  otherwise known as an "Act Strengthening the
National   Electrification  Administration"   lt  is  of  paramount  concern   that  electricity
should  be  provided  in  every  household  in  the  entire  Philippines.  The  residents  of
Davao Occidental are appealing for energization for the past 50 years.
In view of the foregoing, the immediate passage of this bill is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO.
5204
Introduced by: HON. CLAUDE P. BAUTISTA
AN ACT GRANTING LEGISLATIVE FRANCHISE TO DAVAO OCCIDENTAL
ELECTRIC COOPERATIVE (DOCCECO) TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE
CONVEYANCE OF ELECTRIC POWER TO THE END USERS IN THE ENTIRE
PROVINCE OF DAVAO OCCIDENTAL
Be it enacted by the Senate and the House Of Representatives of the Philippines in
Congress assembled:
SECTION 1. Nature and scope of the Franchise. -Subject to the provisions of
the Constitution and applicable laws, rules and regulations, there is hereby granted to
the Davao Occidental  Electric Cooperative,  lnc. (DOCCECO),  hereunder referred to
as the grantee its successors or assignees, a franchise to construct, install, establish,
operate and maintain for public interest, a distribution system for the conveyance of
electric power to the end users in the entire Province of Davao Occidental.
SECTION   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, and it shall be the duty of the grantee,  its
successors  or  assignees,  whenever  required  to  do  so  by  the  Energy  Regulatory
Commission (ERG) or its legal successor, or the National Electrification Administration
(NEA) 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 and
improvements  in  the  electric  power  service  industry  may  render  reasonable  and
Proper.


Wherever  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.
SECTION  3.  Authority of the  Energy  Regulatory  Commission  (ERG) and  the
National Electrification Administration (NEA). -The grantee shall secure from the ERG
or the NEA, or any other government agency which has jurisdiction over the operation
of the herein grantee,  the necessary certificate of public convenience and necessity
and other appropriate permits and  licenses for the construction  and  operation  of its
electric distribution system.
The grantee shall have the obligation to provide open and  non-discriminatory
access to its distribution system and services to 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  market  power  such  as  unfair  trade  practices,   monopolistic
schemes,  and  any  other activities that will  hinder competitiveness of business  and
industry.
SECTION 4. Excavation and Restoration Works. -For the purpose of erecting
and maintaining poles and other supports for wires or other conductors for laying and
maintaining  underground  wires,  cables,  pipes  or other conductors,  the  grantee,  its
successors or assignees]  is authorized to make excavation or lay conduits in any Of
the  public  places,  roads,  highways,  streets,  lanes,  alleys,  avenues,  sidewalks,  or
bridges of said  province,  cities and/or municipalities subject to  prior approval  of the
Department of Public Works  and  Highways  (DPWH) of 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 workman liked 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 the  public  place,  road,  highway,  street,  lane,  alley,
avenue,  sidewalk,  or bridge  disturbed,  altered,  or changed  by the  said  grantee,  its
successors or assignees, then the DPWH or the LGU concerned shall have the right
to have the  sane  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.
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 ERG, 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.
The grantee shall have the obligation to provide open and non-discriminatory
access to its distribution system and services to any end user within its franchise area
consistent with  Republic Act No.  9136 otherwise known  as "Electric  Power Industry
Reform  Act  of  2001".  The  grantee  shall  shall  not  engage  in  any  activity  that  will
constitute  an  abuse  of market  power  such  as  unfair trade  practices,  monopolistic
schemes  and  any  other activities  that will  hinder competitiveness  of business  and
industry.
SECTloN  6.  Rates  for  Services.  -  The  retail  rates  and  charges  for  the
distribution of electric power by the grantee to its end user shall be regulated by and
subject to the approval of the ERG or its legal successor.
The grantee shall identify and itemize in its electricity bill to the end  users the
components of the retail rate pursuant to Republic Act No. 9136. 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 Republic
Act No. 9136.
SECTloN  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.
SECTloN 8. Commitment to Provide and Promote the Creation of Employment
Opportunities. The grantee shall create employment opportunities and shall allow on-
the-job trainjngs in their franchise operation:  Provided, that priority shall be accorded
to  the  residents  where  their  principal  office  js  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.
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  in  so  far  as  it  may  be  reasonably  necessary  for  the  efficient
maintenance  and  operation  Of  services.  The  grantee  is  authorized  to  install  and
maintain  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 tis 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 condemnation proceedings shall have
been instituted and just compensation paid.


SECTION 10. Term of Franchise. -Upon the expiration of the franchise granted
by  congress  to   Davao  del  Sur  Electric  Cooperative  (DASURECO)  covering  the
Province of Davao Occidental in the year Two Thousand and Twenty Five (2025), this
franchise shall be for a term of fifty (50) 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 operate continuously for five (5) years.
SECTION  11.  Acceptance  of  Franchise.  -Acceptance  of the  terms  of this
franchise shall be in writing to the Committee on  Legislative Franchise of the  House
of Representatives and the Committee on  Public Services of the Philippine Senate,
within sixty (60) days after the effectivity of this Act, Upon giving such acceptance, the
grantee  shall  exercise  the  privileges  granted  under this  Act.  Nonacceptance  shall
render the franchise void.
SECTloN  12. Transition  of Operations. -To ensure the uninterrupted  supply
of electricity,  the  DASURECO  in  the  interim,  is  authorized  to  operate  the  existing
distribution system within its former franchise area, and implement its existing power
supply   agreements   with   generation   companies   that   are   provisionally   or  finally
approved  by the  ERC  until  the  grantee  establishes  or acquires  its  own  distribution
system and fully takes over the operation in the franchise area. The DASURECO may
operate not longer than two (2) years from the approval this legislative franchise.
Upon  compliance  with  the  rules,  the  ERG  shall  grant  the  DASURECO  the
necessary  provisional   Certificate  of  Public  Convenience   and   Necessity  (CPCN)
covering the transition period. The ERG shall determine the applicable generation rate.
The Provisional authority to operate during the transition period granted to the
DASURECO shall not prevent the grantee from exercising the right of eminent domain
as  provided  under section  9  of this  act.  During  the  transition  period,  the  ERC  shall
decide and execute its decision on all cases filed against the DASURECO, especially
on those pertaining to claims by consumer for refunds.
To reduce the length of the transition period, the ERC and all agencies issuing
the  requisite  licenses  shall  prioritize  all  applications  of the  grantee  relevant  to  the
establishment and operation of the distribution system under its franchise.
An    Information    dissemination    campaign    regarding    public   services    and
operations of the grantee shall be made to all end -users in the franchise area.
The Department of Energy (DOE) shall,  during the transition, ensure that the
supply of electricity in the existing franchise area is uninterrupted.


SECTION  13. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any newspaper of general circulation.
APPROVED.