Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

House Bill No. 6480

Tntroduced by
APEC Party-List Representative Sergio C. Dagooc
Philreca Party-List Representative Presley C. De Jesus,
Ako Padayon Pilipino Party-List Representative Adriano A. Ebeas,
RECOBODA Party-List Representative Godofredo N. Guya

EXPLANATORY NOTE

The Romblon Electric Cooperative, Inc. (ROMELCO) was organized
and registered with the National Electrification Administration (NEA) with
a mandate to perform electrification in the province of Romblon on an area
coverage basis. Pursuant to 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
ROMELCO to provide an electric power distribution system to the people of
the municipalities of Banton, Concuera and Concepcion, all within the
Province of Romblon. Furthermore, it seeks to require standards that the
grantee must attain in order 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 ROMELCO is gathered from the
results produced since it was granted a franchise to operate electric light
and power services in the island of Romblon and Sibuyan. This covers four
(4) out of seventeen (17) municipalities distributed in seven (7) islands
composing the Province of Romblon. ROMELCO has energized one
hundred percent (100%) of the four (4) municipalities, sixty six (66)
barangays and twenty seven thousand and eight-hundred seventy one
households within its franchise area. Notably, the system loss has been
reduced from forty percent (40%) to a substantially lower rate of nine (9%)
to ten (10%) percent, minimizing power outages and increase in collection
efficiency.


The enactment of this bill will ensure the continuous delivery of
electric service from ROMELCO to the mentioned island municipalities and
will create the path towards progress in Romblon. Likewise, it will be in line
with the policy of the State as provided for in EPIRA, to ensure and
accelerate the total electrification of the country; and to ensure the quality,
reliability, security and affordability of the supply of electric power.

In view of the foregoing, the approval of this bill is earnestly sought.

b

SERGIO C. DAGOOC
APEC Party-List Representative

P LEY C. DE JESUS
PHI CA Party-List Representative

ADRIANO A. EBCAS
Ako Padayon Pilipino Party-List Representative



eI WANE

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6480
House Bill No.

Tntroduced by
APEC Party-List Representative Sergio C. Dagooc
Philreca Party-List Representative Presley C. De Jesus,

Ako Padayon Pilipino Party-List Representative Adriano A. Ebcas,
RECOBODA Party-List Representative Godofredo N. Guya

AN ACT
GRANTING THE ROMBLON ELECTRIC COOPERATIVE, INC.

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
MUNICIPALITIES OF BANTON, CORCUERA AND CONCEPCION,
PROVINCE OF ROMBLON

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 Romblon Electric Cooperative, Inc. (ROMELCO), 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 municipalities of Banton, Corcuera and Concepcion, Province of
Romblon.

As used in this Act, distribution system refers to the system of 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, maintain,
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


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of the grantee, its successors or assigns, whenever required to do so by the Energy
Regulatory Commission, hereinafter referred to as the ERC, or its legal successor,
or the Department of Energy, hereinafter referred to as the 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
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 Energy Regulatory Commission (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. The ERC or any government agency
vested with jurisdiction over the operations, may allow the grantee to expand to
surrounding areas, which are not covered by the franchise granted, whenever
public interest so requires.

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, lines, alleys, avenues,
sidewalks, or bridges of the province and city: 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 at the expense of 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 at double expense to be charged against the grantee, its successors or
assignees.

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


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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
beable 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 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 Republic Act 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 Republic Act 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 - This franchise shall be in effect for a period of
twenty-five (25) years from the date of effectivity of this Act, unless sooner


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cancelled. 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 the Congress of the Philippines, 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 out of
accidents or injuries, whether to property or to persons, caused by 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
and damage arising from or caused by accident to persons and property 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 of the Philippines: 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 the Congress of the Philippines, 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 by a fine in the amount 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


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imposed by the ERC. All proceeds from the fines or penalties shall accrue to the
monitoring fund of the ERC in line with its supervisory and regulatory functions.

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 Republic Act No. 9136, otherwise known as the
"Blectric Power Industry Reform Act of 2001".

SECTION 19. 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 20. 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.

SECTION 21. 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 22. Effectivity Clause - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved.