Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _________ 
Introduced by 
PHILRECA Party-List Representative Presley C. De Jesus 
APEC Party-List Representative Sergio C. Dagooc  
EXPLANATORY NOTE 
Before the national policy for total rural electrification was established in 19691, 
accessible and reliable electric service had eluded rural areas in the Philippines. 
At the time, private electric utility operators deemed it impractical to extend 
services to rural areas because from a business perspective, there is no potential 
for profits in the energization of sparsely populated rural areas. These remote 
areas had no access to electricity, or if they had, it was limited for a few hours 
after dark. This effectively excluded the rural economy from the industrial boom 
that had been benefitting cities where electricity was readily available. 
Through the persistence of the national government, arrangements were made 
with international organizations to develop and institutionalize the Philippine 
Rural Electrification Program. Realizing that the electrification program had been 
moving slowly because of private utilities’ reluctance in serving rural areas, the 
United States Agency for International Development (USAID) recommended that 
the Philippines adopt the rural electric cooperative system of the United States. 
From piloting two or three electric cooperatives, electrification efforts quickly 
gathered pace in the 1970s until the 1980s with the organization of more than 
100 electric cooperatives tasked to energize rural areas all over the country. In 
the Philippines, where vast rural areas have long remained underserved, electric 
cooperatives have emerged as the champions of electrification. 
1 Republic Act No. 6038 
May 11, 2023
8073
12:45 pm


Fast forward to 2022, the dedication and efforts of the 121 electric cooperatives 
in performing their mandate had reached 78 provinces, 90 cities, 1,387 
municipalities, 36,081 barangays, 127,098 sitios, with a total of 15.35 million 
household connections.2 There is no doubt that electric cooperatives have played 
a crucial role in extending electricity to remote regions, empowering local 
communities, and bridging the rural-urban divide.  
Electric cooperatives have proven themselves as key agents of change especially 
to the most remote corners of the country. These areas, previously left in 
darkness, have now been illuminated, driving economic growth and unlocking 
the potential of rural communities. By preserving and further empowering them, 
we can propel the nation towards a brighter, more sustainable future. 
Recognizing their significant contribution in the electrification and progress of 
the country, this measure seeks to preserve and empower all electric 
cooperatives by providing for the automatic renewal of their legislative franchises 
for a term of twenty-five (25) years. It is envisioned that such renewal will enable 
them to further build on their achievements and continue fostering economic 
development in their communities.  
In view of the foregoing, the passage of this bill is earnestly and sincerely sought. 
REP. PRESLEY C. DE JESUS 
PHILRECA Party-list Representative 
REP. SERGIO C. DAGOOC 
APEC Party-list Representative 
2 NEA Annual Report 2022 


Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _________ 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc  
PHILRECA Party-List Representative Presley C. De Jesus 
AN ACT 
EXTENDING THE FRANCHISES OF ELECTRIC COOPERATIVES TO 
CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE AND 
MAINTAIN DISTRIBUTION SYSTEMS FOR THE CONVEYANCE OF 
ELECTRIC POWER TO THE END-USERS IN THEIR RESPECTIVE 
FRANCHISE AREAS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. This Act shall be known as the “Electric Cooperative 
1 
Empowerment Act.” 
2 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the 
3 
State to: 
4 
a) Promote the sustainable development in the rural areas through rural
5 
electrification; 
6 
b) Recognize the contribution of electric cooperatives as partners of the
7 
national government in achieving total electrification in the country; and 
8 
c) Enable the unhampered service delivery of electric cooperatives to end-
9 
users in their franchise areas. 
10 
8073


SECTION 3. Scope and Application. – This Act shall cover electric 
1 
cooperatives with existing legislative franchises expiring within five (5) years 
2 
upon the effectivity of this Act. 
3 
SECTION 4. Automatic Extension of Electric Cooperatives’ Legislative 
4 
Franchises. – All qualified electric cooperatives as provided under Section 3 of 
5 
this Act shall be granted automatic extension of their existing legislative 
6 
franchises: Provided, That electric cooperatives qualified under this Act have 
7 
complied with the submission of all reportorial requirements to the Congress of 
8 
the Philippines, through the Committee on Legislative Franchises of the House 
9 
of Representatives and the Committee on Public Services of the Senate, during 
10 
the effectivity of their existing franchise. 
11 
SECTION 5. Term of Franchise. – Unless sooner cancelled, the franchises 
12 
granted under this Act shall be in effect for a period of twenty-five (25) years from 
13 
the year of expiration of the grantees’ existing franchises. They shall be deemed 
14 
ipso facto revoked in the event the grantees fail to operate continuously for two 
15 
(2) years.
16 
SECTION 6. Congressional Oversight. – The Joint Congressional Energy 
17 
Commission shall exercise oversight powers over implementation of this Act. The 
18 
National 
Electrification 
Administration 
(NEA) 
and 
Energy 
Regulatory 
19 
Commission (ERC) shall submit annually to the Commission a comprehensive 
20 
report on the implementation of this Act not later than the 15th of March every 
21 
year: Provided, That the report shall include identification of legislative gaps and 
22 
recommendations, if any. 
23 
SECTION 7. Existing Powers. – Existing mandates, powers, functions, and 
24 
privileges granted to electric cooperatives under their existing franchise and all 
25 
applicable laws shall remain valid and effective, unless expressly repealed by 
26 
succeeding laws. 
27 
SECTION 8. Implementing Rules and Regulations. – The NEA and ERC, in 
28 
consultation with concerned government agencies and stakeholders, shall 
29 
promulgate the Implementing Rules and Regulations necessary to carry out and 
30 
implement the provisions of this Act within sixty days (60) from the effectivity of 
31 
this Act. 
32 
SECTION 9. Repealing Clause - All laws, presidential decrees, executive 
33 
orders, letters of instruction, administrative rules and regulations or parts 
34 


 
 
thereof which are contrary to or inconsistent with the provisions of this Act are 
1 
hereby repealed or modified accordingly. 
2 
SECTION 10. Separability Clause – Should any part or provision of this 
3 
Act be held unconstitutional or invalid, all other provisions hereof which are not 
4 
affected thereby shall continue to be in full force and effect.  
5 
SECTION 11. Effectivity. – This Act shall take effect after fifteen (15) days 
6 
following its complete publication in the Official Gazette or in two (2) newspapers 
7 
of general circulation whichever is earlier. 
8 
Approved, 
9