Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
Second Regular Session 
HOUSE BILL NO.  ____ 
___________________________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
___________________________________________________________________________________ 
EXPLANATORY NOTE 
SORECO II was established pursuant to Presidential Decree No. 269, as amended, 
and operates under the oversight of the National Electrification Administration (NEA). Its 
primary mission is to provide electricity to the City of Sorsogon and surrounding 
municipalities, including Donsol, Pilar, Castilla, Gubat, Prieto Diaz, and Barcelona, as 
well as their neighboring suburbs on an area coverage basis. 
The proposal to grant a congressional franchise to SORECO II is motivated by the 
objective of elevating the cooperative to higher standards, fostering an effective 
partnership between the State and the grantee. Enacting this bill is crucial for the 
sustained provision of an electric power distribution system to the aforementioned areas. 
It imposes a set of stringent standards, ensuring SORECO II's commitment to financial 
viability, institutional integrity, technical proficiency, and consumer service satisfaction. 
Moreover, this legislative initiative ensures the continuity of electricity delivery to 
the City and Municipalities, aligning with the broader national policy outlined in the 
Electric Power Industry Reform Act (EPIRA). The objective is to expedite the total 
electrification of the country while safeguarding the quality, reliability, security, and 
affordability of electric power supply for the Filipino people. 
In light of these considerations, the approval of this bill is earnestly sought, 
recognizing its paramount role in supporting SORECO II's mission and contributing to the 
sustained progress of Sorsogon. 
BERNADETTE “DETTE” G. ESCUDERO 
January 8, 2024
8:00 am
9775


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
Second Regular Session 
HOUSE BILL NO.  ____ 
___________________________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
___________________________________________________________________________________ 
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; THE 
MUNICIPALITIES OF DONSOL, PILAR, CASTILLA, GUBAT, PRIETO DIAZ, 
BARCELONA AND ITS NEIGHBORING SUBURBS 
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 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, municipalities of Donsol, Pilar, Castilla, 
Gubat, Prieto Diaz, Barcelona, and its neighboring suburbs. 
As used in this Act, the 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 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 
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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 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,