Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No.  10013 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List Representative 
Sergio C. Dagooc, APEC Party-List Representative 
EXPLANATORY NOTE 
This bill seeks to grant a congressional franchise to Zambales I Electric 
Cooperative, Inc. (ZAMECO I) to provide an electric power distribution system 
to the people in the municipalities of Botolan, Iba, Palauig, Masinloc, 
Candelaria, and, Sta. Cruz, Province of Zambales.  Furthermore, it establishes 
standards that the franchise grantee must attain in order to implement an 
effective partnership between the government and the distribution utility as 
its partner for total electrification. 
ZAMECO I is an electric cooperative organized and existing by virtue of 
Presidential Decree No. 269 (PD 269) and was registered with the National 
Electrification Administration (NEA) on June 30, 1972. ZAMECO I was 
granted its Certificate of Franchise by NEA on November 27, 1978, 
authorizing it to operate an electric light and power service for a period of fifty 
(50) years until November 27, 2028.
ZAMECO I has been providing excellent to the municipalities covered 
under its franchise, achieving 100% barangay and sitio energization as of 
December 2023. This translates to 118 barangays with 179 sitios energized 
and 83,787 consumer connections. ZAMECO I possesses the technical, 
financial and institutional capabilities to perform the electrification program 
in the municipalities covered by their franchise area. As of December 2023, it 
maintains a single digit system of 8.33%. 
March 4, 2024
11:17 am


Granting this franchise will ensure the continuous supply of electricity 
to the people of Botolan, Iba, Palauig, Masinloc, Candelaria, and, Sta. Cruz in 
the province of Zambales. It will enable ZAMECO I to continue with its mission 
of taking a major role in the socio-economic development of Zambales by 
providing an affordable, dependable, efficient and reliable electric service to 
its member-consumer-owners. 
In view of the foregoing, the approval of this bill is earnestly sought. 
REP. PRESLEY C. DE JESUS 
Representative, PhilRECA Party-List 
REP. SERGIO C. DAGOOC 
Representative, APEC Party-List 


Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No.  10013 
Introduced by  
Presley C. De Jesus, PhilRECA Party-List Representative 
Sergio C. Dagooc, APEC Party-List Representative 
AN ACT 
GRANTING THE ZAMBALES 1 ELECTRIC COOPERATIVE, INC. (ZAMECO 
I) 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 BOTOLAN, IBA, PALAUIG, MASINLOC, 
CANDELARIA, AND STA. CRUZ IN THE PROVINCE OF ZAMBALES 
Be it enacted by the Senate and the 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 Zambales I Electric Cooperative, Inc. (ZAMECO 
I), 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 of 
Botolan, Iba, Palauig, Masinloc, Candelaria, and, Sta. Cruz, Province of 
Zambales. 
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 Operation of Facilities. – All electric 
distribution facilities, lines and systems for electric services installed, owned, 
maintained, operated, managed 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, 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 aesthetic 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.
SECTION 4. Ingress and Egress. – For the purpose of erecting and 
maintaining the poles or other supports for said facilities, wire 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, in coordination with 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, road, 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 replaces 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 grantee shall charge reasonable and just power 
rates for its services to all types of consumers within its franchised area 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 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 cancelled or revoked. 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, 
nor merge with any other corporation, or entity, nor 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 sale, lease, 
transfer, granting the usufruct of, 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 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 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: 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 “Electric Power Industry Reform Act of 2001”. 
 
 
SECTION 19. Repealability 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 20. 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 21. Repealing Clause. – All laws, presidential decrees, 
executive orders, letters of instruction, administrative rules and regulations 
or parts thereof which is are contrary to or inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
 
SECTION 22. Existing Powers. - Existing mandates, powers, 
functions, and privileges granted to Electric Cooperatives under existing laws, 
including Section 10 of Republic Act No. 10531, shall remain valid and 
effective, unless expressly repealed by succeeding laws.  
 
 
SECTION 23. Effectivity Clause. – This Act shall take effect fifteen (15) 
days after its publication in at least two (2) newspaper of general circulation. 
 
 
 
Approved,