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 
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 
July 19, 2022
4:00 pm
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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. 
 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
          
REP. PRESLEY C. DE JESUS 
PHILRECA Partylist Representative 
 
 
 
 
 
 
 
 
 
 
REP. SERGIO C. DAGOOC 
APEC Partylist Representative 
 
 
 
 
 
 
 


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 
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 the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
SECTION 1. Nature and Scope of Franchise. – Subject to the provisions 
1 
of the Constitution and applicable laws, rules and regulations, there is hereby 
2 
granted to the Romblon Electric Cooperative, Inc. (ROMELCO), hereunder 
3 
referred to as the grantee, its successors or assigns a franchise to construct, 
4 
install, establish, operate, own, manage and maintain in the public interest and 
5 
commercial purposes, a distribution system for the conveyance of electric power 
6 
to the end-users in the municipalities of Banton, Corcuera and Concepcion, 
7 
Province of Romblon. 
8 
As used in this Act, distribution system refers to the system of wires and 
9 
associated facilities including sub-transmission lines belonging to a franchised 
10 
distribution utility extending between the delivery point on the national 
11 
2154


transmission system or generating facility and the metering point/facility of the 
1 
end-users.  
2 
SECTION 2. Manner of Operations of Facilities. – All electric 
3 
distribution facilities, lines and systems for electric services installed, owned, 
4 
maintain, operated, managed or maintained by the grantee, its successors or 
5 
assigns shall be operated or maintained at all times in a superior manner, and 
6 
it shall be the duty of the grantee, its successors or assigns, whenever required 
7 
to do so by the Energy Regulatory Commission, hereinafter referred to as the 
8 
ERC, or its legal successor, or the Department of Energy, hereinafter referred to 
9 
as the DOE, or its legal successor, or any other government agency concerned to 
10 
modify, improve and change such facilities or systems in such manner and to 
11 
such extent as the progress in science or technology and improvements or 
12 
innovations in the electric power services may render reasonable and proper. 
13 
Whenever practicable, and for purposes of maintaining order, safety and 
14 
aesthetics along the highways, roads, streets, alleys or right-of-way, the grantee 
15 
may allow the use of free spaces in its poles, facilities or right-of-way by 
16 
interested parties upon reasonable compensation to the grantee considering the 
17 
costs incurred to accommodate and administer the use of the grantee’s facilities 
18 
by such parties. The ERC shall decide in case of dispute or disagreement between 
19 
the parties. 
20 
SECTION 3. Authority of the Energy Regulatory Commission (ERC). – 
21 
The grantee shall secure from the ERC or any government agency having 
22 
jurisdiction over their operations, the certificate of public convenience and 
23 
necessity and any other license, permit or authority indispensable for the 
24 
construction and operation of the electric power distribution system. The ERC 
25 
or any government agency vested with jurisdiction over the operations, may allow 
26 
the grantee to expand to surrounding areas, which are not covered by the 
27 
franchise granted, whenever public interest so requires.  
28 
SECTION 4. Ingress and Egress. – For the purpose of erecting and 
29 
maintaining the poles or other supports for said facilities, wires or other 
30 
conductors or for the purpose of laying and maintaining said facilities, wires, 
31 
cables or other conductors, it shall be lawful for the grantee, its successors, or 
32 
assignees, with the prior approval of the Department of Public Works and 
33 
Highways (DPWH) or the local government unit concerned, as may be 
34 
appropriate, to make excavations or lay conduits in any of the public places, 
35 
highways, roads, streets, lines, alleys, avenues, sidewalks, or bridges of the 
36 
province and city:  Provided, however, That a public place, highway, road, street, 
37 
lane, alley, avenue, sidewalk, or bridge disturbed, altered, or changed by reason 
38 


of erection of poles or other supports or the underground laying of wires, other 
1 
conductors or conduits, shall be repaired and replaced in workmanlike manner 
2 
at the expense of the grantee, its successors or assignees, in accordance with 
3 
the standards set by the DPWH or the local government unit concerned. Should 
4 
the grantee, its successors or assignees, after the ten (10)-day notice from the 
5 
grant of authority, fail, refuse or neglect to repair or replace any part of public 
6 
place, highway, road, street, lane, alley, avenue, sidewalk, or bridge altered, 
7 
changed, or disturbed by the said grantee, its successors or assignees, then the 
8 
DPWH or the local government unit concerned shall have the right to have the 
9 
same repaired and replaced in good order and condition at double expense to be 
10 
charged against the grantee, its successors or assignees. 
11 
SECTION 5. Responsibility to the Public. – The grantee shall supply 
12 
electricity to its captive market in the least costly manner. In the interest of the 
13 
public good and as far as feasible and whenever required by the ERC, the grantee 
14 
shall modify, improve, or change its facilities, poles, lines, systems and 
15 
equipment for the purpose of providing efficient and reliable service and reduced 
16 
electricity costs. The grantee shall charge reasonable and just power rates for its 
17 
services to all types of consumers within its franchised areas in order that 
18 
business and industries shall be able to compete. 
19 
The 
grantee 
shall 
have 
the 
obligation 
to 
provide 
open 
and 
20 
nondiscriminatory access to its distribution system and services for any end-
21 
user within its franchise area consistent with Republic Act No. 9136, otherwise 
22 
known as the "Electric Power Industry Reform Act of 2001". The grantee shall 
23 
not engage in any activity that will constitute an abuse of market power such as 
24 
unfair trade practices, monopolistic schemes, and other activities that will hinder 
25 
competitiveness of business and industries. 
26 
SECTION 6. Rates for Services. - The retail rates and charges for the 
27 
distribution of electric power by the grantee to its end-users shall be regulated 
28 
by and subject to the approval of the ERC or its legal successor. 
29 
The grantee shall identify and segregate in its electricity bill to the end-
30 
users the components of the retail rate pursuant to Republic Act No. 9136, 
31 
unless otherwise amended. Such rates charged by the grantee to the end-users 
32 
shall be made public and transparent. The grantee shall implement lifeline rate 
33 
to marginalized end-users as mandated under Republic Act No. 9136. 
34 
SECTION 7. Promotion of Consumer Interests – The herein grantee shall 
35 
establish a consumer desk that will handle consumer complaints and ensure 
36 


adequate promotion of consumer interests. The grantee shall act with dispatch 
1 
on all complaints brought before it. 
2 
SECTION 8. Right of the Government - A special right is hereby reserved 
3 
to the President of the Philippines, in times of war, rebellion, public peril, 
4 
calamity, emergency, disaster or disturbance of peace and order: to temporarily 
5 
take over and operate the stations or facilities of the grantee; to temporarily 
6 
suspend the operation of any station or facility in the interest of public safety, 
7 
security and public welfare; or to authorize the temporary use and operation 
8 
thereof by any agency of the government, upon due compensation to the grantee, 
9 
for the use of the stations or facilities during the period when these shall be so 
10 
operated. 
11 
SECTION 9. Right of Eminent Domain – Subject to the limitations and 
12 
procedures prescribed by law, the grantee is authorized to exercise the right of 
13 
eminent domain insofar as it may be reasonably necessary for the efficient 
14 
maintenance and operation of services. The grantee is authorized to install and 
15 
maintain its poles, wires, and other facilities over and across public property, 
16 
including streets, highways, forest reserves, and other similar property of the 
17 
Government of the Philippines, its branches, or any of its instrumentalities. The 
18 
grantee may acquire such private property as is actually necessary for the 
19 
realization of the purposes for which this franchise is granted: Provided, That 
20 
proper expropriation proceedings shall have been instituted and just 
21 
compensation paid. 
22 
SECTION 10. Term of Franchise. - This franchise shall be in effect for a 
23 
period of twenty-five (25) years from the date of effectivity of this Act, unless 
24 
sooner cancelled. This franchise shall be deemed ipso facto revoked in the event 
25 
the grantee fails to operate continuously for two (2) years. 
26 
SECTION 11. Acceptance and Compliance. - Acceptance of this 
27 
franchise shall be given in writing to the Congress of the Philippines, through 
28 
the Committee on Legislative Franchises of the House of Representatives and the 
29 
Committee on Public Services of the Senate within sixty (60) days from the 
30 
effectivity of this Act. Upon such acceptance, the grantee shall exercise the 
31 
privileges granted under this Act. Nonacceptance shall render the franchise void. 
32 
SECTION 12. Warranty in Favor of the National and Local 
33 
Governments – The grantee shall hold the national, provincial, city, and 
34 
municipal governments of the Philippines free from all claims, accounts, 
35 
demands, or actions arising out of accidents or injuries, whether to property or 
36 


to persons, caused by the construction, installation, operation, and maintenance 
1 
of the distribution system of the grantee. 
2 
SECTION 13. Liability for Damages – The grantee shall be liable for any 
3 
injury and damage arising from or caused by accident to persons and property 
4 
by reason of any defective construction under this franchise or of any neglect or 
5 
omission to keep its poles and wires in safe condition. 
6 
SECTION 14. Sale, Lease, Transfer, Usufruct, or Assignment of 
7 
Franchise. - The grantee shall not sell, lease, transfer, grant the usufruct of, or 
8 
assign this franchise or the rights and privileges acquired thereunder to any 
9 
person, firm, company, corporation, or other commercial or legal entity, or merge 
10 
with any other corporation, or entity, or shall transfer the controlling interest of 
11 
the grantee, whether as a whole or in parts, and whether simultaneously or 
12 
contemporaneously, to any such person, firm, company, corporation, or entity 
13 
without the prior approval of the Congress of the Philippines: Provided, That 
14 
Congress shall be informed of any lease, transfer, granting the usufruct of, sale, 
15 
or assignment of franchise or the rights and privileges acquired thereunder, or 
16 
of the merger, or sale of the controlling interest within sixty (60) days after the 
17 
completion of said transaction: Provided further, That any such transfer, sale, or 
18 
assignment is in accordance with the constitutional limitations: Provided 
19 
furthermore, That failure to report to Congress such change of ownership shall 
20 
render the franchise ipso facto revoked: Provided finally, That any person or 
21 
entity to which this franchise is sold, transferred, or assigned, shall be subject 
22 
to the same, conditions, terms, restrictions, and limitations of this Act. 
23 
SECTION 15. Reportorial Requirement. - The grantee shall submit an 
24 
annual report to the Congress of the Philippines, through the Committee on 
25 
Legislative Franchises of the House of Representatives and the Committee on 
26 
Public Services of the Senate, on its compliance with the terms and conditions 
27 
of the franchise and on its operations on or before April 30 of every year during 
28 
the term of the franchise. The reportorial compliance certificate issued by 
29 
Congress shall be required before any application for permit or certificate is 
30 
accepted by the ERC. 
31 
SECTION 16. Fine. - The failure of the grantee to submit the requisite 
32 
annual report to Congress shall be penalized by a fine in the amount of five 
33 
hundred pesos (P500.00) per working day of noncompliance. The fine shall be 
34 
collected by the ERC from the delinquent franchise grantee separate from the 
35 
reportorial penalties imposed by the ERC. All proceeds from the fines or penalties 
36 
shall accrue to the monitoring fund of the ERC in line with its supervisory and 
37 
regulatory functions. 
38 


SECTION 17. Equality Clause. - Any advantage, favor, privilege, 
1 
exemption, or immunity granted under existing franchises, or which may 
2 
hereafter be granted, upon prior review and approval of Congress, shall become 
3 
part of this franchise and shall be accorded immediately and unconditionally to 
4 
the herein grantee: Provided, however, That the foregoing shall neither apply to 
5 
nor affect provisions concerning territory covered by the franchise, the life span 
6 
of the franchise or the type of service authorized by the franchise: Provided, 
7 
further, That the foregoing shall not apply to the sale, lease, transfer, grant of 
8 
usufruct, or assignment of legislative franchises with prior congressional 
9 
approval. 
10 
SECTION 18. Applicability Clause. - The grantee shall comply with and 
11 
be subject to the provisions of Commonwealth Act No. 146, as amended, 
12 
otherwise known as the "Public Service Act" and Republic Act No. 9136, 
13 
otherwise known as the "Electric Power Industry Reform Act of 2001". 
14 
SECTION 20. Repeatability and Non-Exclusivity Clause. - This 
15 
franchise shall be subject to amendment, alteration, or repeal by the Congress 
16 
of the Philippines when the public interest so requires and shall not be 
17 
interpreted as an exclusive grant of the privileges herein provided for. 
18 
SECTION 20. Separability Clause. - If any of the sections or provisions 
19 
of this Act is held invalid, all other provisions not affected thereby shall remain 
20 
valid. 
21 
SECTION 21. Repealing Clause. –  All laws, presidential decrees, 
22 
executive orders, letters of instruction, administrative rules and regulations or 
23 
parts thereof which are contrary to or inconsistent with the provisions of this Act 
24 
are hereby repealed or modified accordingly.  
25 
SECTION 22. Effectivity Clause. - This Act shall take effect fifteen (15) 
26 
days after its publication in at least two (2) newspapers of general circulation. 
27 
Approved, 
28