Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH Congress 
3rd Regular Session 
HOUSE BILL NO. _______ 
EXPLANATORY NOTE 
Introduced by Hon. Michael B. Gorriceta and Hon. Braeden John Q. Biron 
This house bill seeks to amend certain sections of Republic Act No. 
11212, which granted MORE Electric and Power Corporation (MORE Power) a 
distribution utility franchise for Iloilo City, to allow it to expand and enable it to 
establish, operate, and maintain, for commercial purposes and in the public 
interest, a distribution system for the conveyance of electric power to end users n 
in the City of Iloilo and in the Municipalities comprising the 2nd District and the 4th 
District, both of Iloilo Province. 
Thus, this expanded franchise area will include its present franchise area 
of Iloilo City under Republic Act No. 11212, and the new franchise areas of the 
Municipalities of Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, 
Santa Barbara and Zarraga, all in the 2nd District of Iloilo, and the Municipalities 
of Anilao, Banate, Barotac Nuevo, Dingle, Duenas, Dumangas and San Enrique 
and the City of Passi, all in the 4th District of Iloilo. 
Electricity is the hallmark of and an essential service in the modern age. It 
lights homes, streets, offices, hospitals, schools, factories, malls, hotels, and 
powers industries, and industries give our people convenience, jobs and 
business opportunities. In the short period of one and a half years from taking 
over the operation, rehabilitation and expansion of the distribution system in Iloilo 
City, MORE Power has reduced electric rates in Iloilo City from one of the 
highest in the country to one of the lowest in the country. Access to legitimate 
electrical connection was expanded from 63,000 customers to 88,000 customers 
in the City. It has undertaken a continuing rehabilitation and improvement 
program for the aging and decrepit distribution facilities from the previous 
operator. We feel that such service, marked by the highest standards, and which 
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has been proven to be fast, reliable, responsive, modern and forward looking, 
should also be made available to Ilonggos living outside Iloilo City. 
We do recognize that the towns proposed to be included in this expansion 
of the franchise area are currently served by Iloilo I Electric Cooperative, Inc. 
(ILECO 1) and Iloilo II Electric Cooperative, Inc. (ILECO II). But the Constitution 
is clear that no franchise for a public utility shall be exclusive in character. 
(Section 11, Article XII of the 1987 Constitution). Public interest will be better 
served if we allow competition that will give Ilonggos living in the 2nd District and 
the 4th District, both of Iloilo Province, to have a choice to avail of the benefit from 
the services of a modern, dependable, cheap, and efficient electric power 
distribution system, offered by MORE Power to Iloilo City residents. It is the right 
time to do this, and to continue the progress of Iloilo City and to jump start the 
progress in the nearby parts Iloilo Province. 
Approval of this bill is, thus, earnestly sought. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
3rd Regular Session 
HOUSE BILL NO. _______ 
Introduced by the Hon. Michael B. Gorriceta, 2nd District, Iloilo, and Hon. Braeden 
John Q. Biron, 4th District, Iloilo 
AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 11212, 
ENTITLED: 
AN 
ACT 
GRANTING 
MORE 
ELECTRIC 
AND 
POWER 
CORPORATION A FRANCHISE TO ESTABLISH, OPERATE, AND MAINTAIN, 
FOR COMMERCIAL PURPOSES AND IN THE PUBLIC INTEREST, A 
DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER 
TO END USERS IN THE CITY OF ILOILO, PROVINCE OF ILOILO, AND 
ENSURING THE CONTINUOUS AND UNINTERRUPTED SUPPLY OF 
ELECTRICITY IN THE FRANCHISE AREA, TO EXPAND ITS FRANCHISE 
AREA AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. SECTION 1 of Republic Act No. 11212 is hereby amended to read 
as follows: 
“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 MORE Electric and Power Corporation, hereunder referred to as the grantee, 
its successors or assignees, a franchise to establish, operate, and maintain, for 
commercial purposes and in the public interest, a distribution system for the 
conveyance of electric power to end users in the City of Iloilo, the Municipalities 
of Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, Santa Barbara 
and Zarraga, all in the 2nd District of Iloilo, and the Municipalities of Anilao, 
Banate, Barotac Nuevo, Dingle, Duenas, Dumangas and San Enrique and the 
City of Passi, all in the 4th District of Iloilo.” 
“As used in this Act, distribution system refers to the system of wires and 
associated facilities including subtransmission lines belonging to or used by a 
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franchised distribution utility extending between the delivery point on the national 
transmission system or generating facility and the metering point or facility of the 
end-user.” 
SEC. 2. SEC. 11 of Republic Act No. 11212 is hereby amended to read as 
follows: 
“SEC. 11. Term of Franchise. – The twenty-five (25) years term of this franchise 
shall be counted  from the date of effectivity of this Act, entitled: AN ACT 
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 11212, ENTITLED: 
AN ACT GRANTING MORE ELECTRIC AND POWER CORPORATION A 
FRANCHISE 
TO 
ESTABLISH, 
OPERATE, 
AND 
MAINTAIN, 
FOR 
COMMERCIAL 
PURPOSES 
AND 
IN 
THE 
PUBLIC 
INTEREST, 
A 
DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER 
TO END USERS IN THE CITY OF ILOILO, PROVINCE OF ILOILO, AND 
ENSURING THE CONTINUOUS AND UNINTERRUPTED SUPPLY OF 
ELECTRICITY IN THE FRANCHISE AREA, TO EXPAND ITS FRANCHISE 
AREA AND FOR OTHER PURPOSES, and not from the effectivity date of 
Republic Act No. 11212, unless sooner cancelled or revoked.” 
SEC. 3. SEC. 15 of Republic Act No. 11212 is hereby amended to read as 
follows: 
“SEC. 15. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of 
Franchise. - The grantee shall not sell, lease, transfer, grant the usufruct of, nor 
assign this franchise or the rights and privileges acquired thereunder to any 
person, firm, company, corporation or other commercial or legal entity, nor merge 
with any other corporation or entity, nor shall transfer the controlling interest of 
the grantee, whether as a whole or in part, and whether simultaneously or 
contemporaneously, to any person, firm, company, corporation, or entity without 
the prior approval of the Congress of the Philippines and in compliance with legal 
rquirements stipulated in other statutes; Provided, That, during the period before 
the dispersal of its ownership under Section 16, the grantee shall notify Congress 
in writing of any sale, or transfer of its shares less than the controlling interest; 
Provided, further, That failure to report to Congress such change of ownership 
shall render the franchise ipso facto revoked; Provided, furthermore, 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; 
Provided, finally, That the limitations set forth in this section shall not apply to: (a) 
any transfer or issuance of shares of stock in the implementation of the 
requirement for the dispersal of the grantee’s ownership pursuant to Section 16 
of this Act; (b) any transfer or sale of shares of stock to a foreign or local investor 
or investors who will not participate in the management of the grantee; (c) any 
issuance of shares to any foreign or local investors pursuant to or in connection 
with any increase in the grantee’s authorized capital stock which shall result in 
the dilution of the stockholdings of the grantee’s then existing stockholders; (d) 


any combination thereof where such transfer, sale or issuance is effected in 
order to enable the grantee to raise the necessary capital or financing for the 
provision of any of the services authorized by this Act; and (e) any sale, transfer 
or assignment of shares in the grantee in favor of an affiliate whose controlling 
interest is owned by the same parent corporation of the grantee; Provided, That 
any such transfer, sale or issuance is in accordance with any applicable 
constitutional limitations.” 
SEC. 4. SEC. 21 of Republic Act No. 11212 is hereby amended to read as 
follows: 
“SEC. 21. Equality Clause. - Any advantage, favor, privilege, exemption, or 
immunity granted under existing franchises, or which may hereafter be granted to 
power distribution franchises, 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, That the foregoing shall neither 
apply to nor affect provisions concerning  territorial coverage, the term, or the 
type of service authorized by the franchise.“ 
SEC. 5. Separability Clause. - If any of the sections or provisions of this Act is 
held invalid, all other provisions not affected thereby shall remain valid. 
SEC. 6. Repealing Clause. - All laws, decrees, orders, resolutions, instructions 
and rules and regulations or parts thereof, relating to the sections amended, 
which are inconsistent with this Act, are hereby deemed repealed or modified 
accordingly. 
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,